§ 290.35 - Sale of HUD-held mortgages securing unsubsidized projects.  


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  • § 290.35 Sale of HUD-held mortgages securing unsubsidized projects.

    HUD's policy for selling HUD-held mortgages securing unsubsidized projects is as follows:

    (a) Current mortgages may be sold with or without FHA mortgage insurance.

    (b) Delinquent mortgages may be sold without FHA mortgage insurance. However, delinquent mortgages will not be sold if:

    (1) HUD believes that foreclosure is unavoidable; and

    (2) The project securing the mortgage is occupied by very low-income tenants who are not receiving housing assistance and would be likely to pay rent in excess of 30 percent of their adjusted monthly income if HUD sold the mortgage.