24 CFR 206.123 : 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) — Mortgage And Loan Insurance Programs Under National Housing Act And Other Authorities (§ 201.1 To § 267.22) — Home Equity Conversion Mortgage Insurance (§ 206.1 To § 206.308) — Contract Rights And Obligations (§ 206.101 To § 206.133) — Claim Procedure (§ 206.123 To § 206.129) — 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 Secretary;

(2) The mortgagee is unable or unwilling to make the payments under the mortgage and assigns the mortgage to the Secretary pursuant to the Secretary's demand, as provided in § 206.121(b);

(3) The mortgagor sells the property for less than the mortgage 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 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 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.