24 CFR 290.35 : Housing And Urban Development (§ 0.1 To Parts 4101-4199) — (§ 200.1 To Parts 403-499) — Regulations Relating To Housing And Urban Development (Continued) (§ 200.1 To Parts 403-499) — Office Of Assistant Secretary For Housing - Federal Housing Commissioner, Department Of Housing And Urban Development (§ 200.1 To Parts 292-299) — Hud-Owned Properties (§ 290.1 To Parts 292-299) — Disposition Of Multifamily Projects And Sale Of Hud-Held Multifamily Mortgages (§ 290.1 To § 290.39) — Sale Of Hud-Held Multifamily Mortgages (§ 290.30 To § 290.39) — Sale of HUD-held mortgages securing unsubsidized projects.

4 Aug 2016

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.

24 CFR 290.35