HUD ML 2014-15 Updated Requirements for PFS and DIL
On July 10, the U.S. Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2014-15, subtitled Updated Requirements for Pre-Foreclosure Sales (PFS) and Deeds in Lieu (DIL) of Foreclosure.
Mortgagee Letter 2014-15
To: All FHA-Approved Mortgagees Servicing Single Family Mortgages
Subject: Updated Requirements for Pre-Foreclosure Sales (PFS) and Deeds in
Lieu (DIL) of Foreclosure
Purpose: This Mortgagee Letter sets forth the Department’s policies on
Pre-Foreclosure Sales and Deed In Lieu transactions. This Mortgagee
Letter also describes:
- Requirements for real estate agents and brokers participating in PFS
- An initial listing period requirement for PFS transactions;
- Updated sample language for the PFS Addendum;
- Documentation requirements for verifying assets, income, and expenses;
- Use of the Deficit Income Test (DIT);
- The elimination of the financial hardship/deficit income PFS requirement
for a servicemember who has received Permanent Change of Station (PCS)
- Validation requirements for appraisals;
- The criteria under which the Department will permit non-arms-length PFS
- The minimum marketing period for all PFS transactions.
Effective Date: Mortgagees must implement the requirements in this Mortgagee
Letter for all new Approvals to Participate (ATPs) no later than October 1, 2014.
Affected Policy: This Mortgagee Letter supersedes in its entirety Mortgagee
Letter 2013-23, Updated Pre-Foreclosure Sale (PFS) and Deed in Lieu (DIL)
of Foreclosure Requirements, published on July 9, 2013. The policies set
forth in this Mortgagee Letter also supersede, where in conflict, Mortgagee
Letters 2013-34, 2008-43, 2002-13, and 2000-05. All other requirements
of Mortgagee Letters 2008-43, 2002-13, and 2000-05 remain in effect.
Please click here to view the letter in its entirety.
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders, and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally. Website: www.safeguardproperties.com.