HUD Mortgagee Letter 2015-24: Single Family Foreclosure Policy and Procedural Changes for HUD Title II Forward Mortgages and Reverse Mortgages
October 1, 2015
The purpose of this Mortgagee Letter is to update HUD’s:
- Reasonable Diligence timeframes;
- Schedule of Attorney Fees for all jurisdictions; and
- Cash for Keys’ Relocation allowances
Effective Date The updated Reasonable Diligence timeframes are effective for all cases in which the First Legal Action to initiate foreclosure occurs on or after January 1, 2016.
The updated Schedule of Attorney Fees is effective for all cases in which any of the following actions occurs on or after January 1, 2016:
- a first legal action to foreclose is initiated;
- a bankruptcy clearance is undertaken;
- a possessory action has begun; or
- a deed-in-lieu of foreclosure is recorded.
The Cash for Keys’ Relocation allowances are effective for all FHA-insured
mortgages for which a foreclosure sale or non-conveyance transaction is scheduled on or after January 1, 2016.
Beginning January 1, 2016, the policies set forth in this Mortgagee Letter supersede all prior Reasonable Diligence timeframes, Attorney Fee schedules and Cash for Keys’ Relocation allowances, including those outlined in Mortgagee Letters 2013-38 and 2002-13.
Source: HUD (Mortgagee Letter 2015-24 full version)