WAIS Document Retrieval[Code of Federal Regulations]
[Title 24, Volume 2, Parts 200 to 499]
[Revised as of April 1, 2000]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR203.357]

[Page 188]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
PART 203--SINGLE FAMILY MORTGAGE INSURANCE--Table of Contents
 
               Subpart B--Contract Rights and Obligations
 
Sec. 203.357  Deed in lieu of foreclosure.

    (a) Mortgagors owning one property. In lieu of instituting or 
completing a foreclosure, the mortgagee may acquire property from one 
other than a corporate mortgagor by voluntary conveyance from the 
mortgagor who certifies that he does not own any other property subject 
to a mortgage insured or held by FHA. Conveyance of the property by deed 
in lieu of foreclosure is approved subject to the following 
requirements:
    (1) The mortgage is in default at the time the deed is executed and 
delivered;
    (2) The credit instrument is cancelled and surrendered to the 
mortgagor;
    (3) The mortgage is satisfied of record as a part of the 
consideration for such conveyance;
    (4) The deed from the mortgagor contains a covenant which warrants 
against the acts of the grantor and all claiming by, through, or under 
him and conveys good marketable title;
    (5) The mortgagee transfers to the Commissioner good marketable 
title accompanied by satisfactory title evidence.
    (b) Corporate mortgagors. A mortgagee may accept a deed in lieu of 
foreclosure from a corporate mortgagor in compliance with the 
requirements of paragraph (a) of this section, if the mortgagee obtains 
the prior written consent of the Commissioner.
    (c) Mortgagors owning more than one property. The mortgagee may 
accept a deed in lieu of foreclosure in compliance with the provisions 
of paragraph (a) of this section, from an individual who owns more than 
one property which is subject to a mortgage insured or held by the FHA 
if the mortgagee obtains the prior written consent of the Commissioner.



