Page 1703
i. Acquisition by Voluntary Conveyance or Surrender (05/09/2022)
Instead of repossession, a Lender may accept a voluntary conveyance of title or ownership of the Property securing a Manufactured Home Loan which is in Default, provided that:
• the Lender accepts the conveyance in full satisfaction of the Borrower’s obligation and no Title I claim is submitted to HUD; or
• the Lender may accept voluntary surrender of the Property without satisfaction of the Borrower’s obligation and submit a Title I claim to HUD. The Lender must dispose of the Property in compliance with state and local laws so as to ensure that it can assign to HUD a valid and legally enforceable obligation against the Borrower for any deficiency.
If a Lender accepts a voluntary conveyance of title or a voluntary surrender of the Property, the Notice of Default and Acceleration is not required.
Page 1704
IV. CLAIMS AND DISPOSITION D. Title I Disposition
2. Property Disposition of Manufactured Homes