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s. Non-conveyance Foreclosure (03/31/2022)
The Mortgagee may elect not to convey the Property to HUD after foreclosure and to terminate the contract of mortgage insurance. The Property may be acquired by the Mortgagee or by a third party at a foreclosure sale, or may be redeemed after foreclosure and no insurance claim will be made to HUD.
For non-conveyance foreclosures, the Mortgagee must use form HUD-27050-A and select Non-Conveyance Foreclosure (Term Type 13) in FHAC to notify HUD.
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III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages
2. Default Servicing