May Mortgagees consent to emergency relocation of the dwelling or improvements without HUD approval?

The Mortgagee may consent to the relocation of existing improvements in emergency situations, where immediate action must be taken to preserve the safety of the occupants and/or the undamaged condition of the existing improvements, without HUD approval.
 
The Mortgagee must notify the National Servicing Center (NSC) via the Extensions and Variances Automated Requests System (EVARS) within 30 Days of the completed permanent relocation and submit a supplementary case binder containing supporting documentation for the change in improvement location. The Mortgagee must include the following in its notification of the completion of the permanent relocation:
  • the FHA case number of the mortgaged Property;
  • the address and legal description of the lot of the improvement’s previous location and the address and legal description of the new permanent location;
  • a statement that HUD regulatory requirements have been met;
  • a statement that the original Note is in full force and effect; and
  • the outstanding balance of the insured Mortgage, and, if Delinquent, the number of payments, the dollar amount of the delinquency, and an explanation of how the delinquency is expected to be cured.
The Mortgagee must retain in the servicing file a copy of its notification of the completion of the permanent relocation.

Additional questions may be directed to the HUD National Servicing Center at (877) 622-8525.
 
For policy information see Handbook 4000.1 III.A.1.j.iv.(B)(1) at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
 

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-05245