FHA Single Family Housing Policy Handbook 4000.1, III. SERVICING AND LOSS MITIGATION > B. Title II Insured Housing Programs Reverse Mortgages > 2. Default Servicing — e. Sale of Property Acquired through Foreclosure or DIL

hud-4000-1-iii-e-sale-of-property-acquired-through-foreclosure-or-dil

HUD effective date: 04/29/2024 · section III.B.2 · Handbook 4000.1

FHA Single Family Housing Policy Handbook 4000.1, Part III — e. Sale of Property Acquired through Foreclosure or DIL (04/29/2024).

This register: .xlsx .csv

Verbatim regulatory text (1)

Verbatim provisions from FHA Single Family Housing Policy Handbook 4000.1, III. SERVICING AND LOSS MITIGATION > B. Title II Insured Housing Programs Reverse Mortgages > 2. Default Servicing — e. Sale of Property Acquired through Foreclosure or DIL — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

FHA Single Family Housing Policy Handbook 4000.1, Part III — e. Sale of Property Acquired through Foreclosure or DIL (04/29/2024)

Effective 2024-04-29 · publisher's stamp for this provision

e. Sale of Property Acquired through Foreclosure or DIL (04/29/2024) Where the Mortgagee intends to submit an Acquired Property Claim (Claim Type 21), the Mortgagee must: • take possession of the Property; • preserve and protect the Property in accordance with Appendix 7.0 – Property Preservation Allowances and Schedules; and • make a diligent effort to sell the Property within six months from the date the Mortgagee acquired the Property, or within such additional time as provided by HUD. The Mortgagee must sell the Property for an amount no less than the current appraised value unless the Mortgagee obtains written permission from HUD authorizing a sale at a lower price. i. Repairs The Mortgagee must repair the Property only to the extent the repairs do not exceed those required: • by local law; or • by HUD or the Department of Veterans Affairs (VA), if the sale of the Property is being financed using an FHA-insured or VA-guaranteed mortgage. The Mortgagee must not make any other repairs without specific advance approval from HUD. The Mortgagee must submit an over-allowable request using the appropriate timeline in HERMIT. ii. Closing Costs For case numbers assigned on or after September 19, 2017, the Mortgagee may be reimbursed for allowable closing costs associated with the sale of the Property in an amount not to exceed 11 percent of the sales price. Allowable closing costs may include: • a sales commission at a rate customarily paid in the community; and • other reasonable and customary expenses incurred in connection with the sale of the Property. iii. Prohibited Conflicts of Interest The Mortgagee must not enter into a contract for the preservation, repair, or sale of the Property with any: • officer, employee, or owner of 10 percent or more interest in the Mortgagee; • other person or organization having an Identity of Interest with the Mortgagee; or • Family Member of such officer, employee, owner, or person.

Source: FHA Single Family Housing Policy Handbook 4000.1, Update 18 (issued 2026-08-12) · source URL · snapshot e1bca3432cf19e09

Get this regulation in your AI window

Retired 4000.1 text reads exactly like current text. Ask an assistant an FHA question and it will often answer from an old edition, confidently, without telling you which one.Put the verbatim text and its effective date in front of your assistant, instead of whatever it remembers.

Open in Claude Open in ChatGPT

Open in Claude shows the one-time setup: paste one address, no account with us. Open in ChatGPT asks ChatGPT about this page, with no setup. Either way it’s free.

Next step: the FHA underwriting QC playbook. Run it in your AI window →

Get notified if this rule changes

One email when FHA Single Family Housing Policy Handbook 4000.1, III. SERVICING AND LOSS MITIGATION > B. Title II Insured Housing Programs Reverse Mortgages > 2. Default Servicing — e. Sale of Property Acquired through Foreclosure or DIL changes: what changed, the new verbatim text, and the effective date. Nothing else.

Double opt-in: we send a confirmation link first. Following one section does not subscribe you to anything else. Privacy.

Source of record: https://claudeforcompliance.com/regs/hud-4000-1-iii-e-sale-of-property-acquired-through-foreclosure-or-dil/ · register hud-4000-1-iii-e-sale-of-property-acquired-through-foreclosure-or-dil · verbatim, source-snapshotted regulator text from the Claude for Compliance corpus. To work from every register at once, download the corpus and follow the methodology.