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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 24 - Housing and Urban Development |
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Subtitle B - Regulations Relating to Housing and Urban Development |
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Chapter II - Office of Assistant Secretary for Housing - Federal Housing Commissioner, Department of Housing and Urban Development |
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SubChapter B - Mortgage and Loan Insurance Programs Under National Housing Act and Other Authorities |
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Part 206 - Home Equity Conversion Mortgage Insurance |
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Subpart C - Contract Rights and Obligations |
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Claim Procedure |
§ 206.123 - Claim procedures in general.
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§ 206.123 Claim procedures in general.
(a) Claims. Mortgagees may submit claims for the payment of the mortgage insurance benefits if:
(1) The conditions of § 206.107(a)(1) pertaining to the optional assignment of the mortgage by the mortgagee have been met and the mortgagee assigns the mortgage to the SecretaryCommissioner;
(2) The mortgagee is unable or unwilling to make the payments under the mortgage and assigns the mortgage to the Secretary Commissioner pursuant to the SecretaryCommissioner's demand, as provided in § 206.121(b);
(3) The mortgagor borrower or other permissible party sells the property for less than the mortgage outstanding loan balance and the mortgagee releases the mortgage of record to facilitate the sale, as provided in § 206.125(c);
(4) The mortgagee acquires title to the property by foreclosure or a deed in lieu of foreclosure and sells the property as provided in § 206.125(g) for an amount which does not satisfy the mortgage outstanding loan balance or fails to sell the property as provided in § 206.127(a)(2); or
(5) The mortgagee forecloses and a bidder other than the mortgagee purchases the property for an amount that is not sufficient to satisfy the mortgage outstanding loan balance, as provided in § 206.125(e).
(b) Expanded definition of mortgagor. The term mortgagor as used in this subpart shall have the same meaning as stated in § 206.3, except that in reference to a sale by the mortgagor, the term shall also mean the mortgagor's estate or personal representative.
(Approved by the Office of Management and Budget under control number 2528-0133)
[54 FR 24833, June 9, 1989, as amended at 60 FR 42761, Aug. 16, 1995[Reserved]