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: 24CFR203.369]

[Page 193-194]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
PART 203--SINGLE FAMILY MORTGAGE INSURANCE--Table of Contents
 
               Subpart B--Contract Rights and Obligations
 
Sec. 203.369  Deficiency judgments.

    (a) Mortgages insured on or after March 28, 1988. (1) For mortgages 
insured pursuant to firm commitments issued on or after March 28, 1988, 
or pursuant to direct endorsement processing where the credit worksheet 
was signed by the mortgagee's underwriter on or after March 28, 1988, 
the Secretary may require the mortgagee diligently to pursue a 
deficiency judgment in connection with any foreclosure.

[[Page 194]]

With respect to claims filed for insurance benefits on such mortgages, 
any judgment obtained by the mortgagee must be assigned to the 
Secretary.
    (2) In cases where the Secretary requires the pursuit of a 
deficiency judgment and provides the mortgagee with the Secretary's 
estimate of the fair market value of the property, less adjustments, in 
accordance with Sec. 203.368(e) of this part, the mortgagee must tender 
a bid at the foreclosure sale in that amount, and must take all other 
appropriate steps in accordance with State law to obtain a deficiency 
judgment.
    (b) Mortgages insured before March 28, 1988. For mortgages insured 
pursuant to firm commitments issued before March 28, 1988, or pursuant 
to direct endorsement processing where the credit worksheet was signed 
by the mortgagee's underwriter before March 28, 1988, the Secretary may 
request that the mortgage diligently pursue a deficiency judgment in 
connection with the foreclosure. With respect to claims filed for 
insurance benefits on such mortgages, any judgment obtained by the 
mortgagee must be assigned to the Secretary.
    (c) In cases where pursuit of a deficiency judgment is requested or 
required under this section, the Commissioner, where the Commissioner 
determines it appropriate under State law requirements, may extend the 
otherwise applicable period of time within which a deficiency judgment 
(and other claims against the mortgagor) and related credit documents 
must be assigned to the Commissioner under Sec. 203.360, Sec. 203.367 or 
Sec. 203.368 of this subpart.
    (d) In addition to meeting the requirements of Sec. 203.356, in 
cases where the Commissioner determines it necessary because of State 
law requirements, the Commissioner may also require (or request, as the 
Commissioner may determine) the mortgagee to provide the Commissioner 
with notice of the mortgagee's intent to institute foreclosure 
proceedings a reasonable amount of time before proceedings are 
instituted, in order that the Commissioner may be able effectively to 
require or request the mortgagee, in appropriate cases, to seek a 
deficiency judgment.

(The information collection requirements contained in this section have 
been approved by the Office of Management and Budget under control 
number 2535-0093)

[53 FR 4387, Feb. 16, 1988, as amended at 57 FR 47972, Oct. 20, 1992; 61 
FR 36453, July 10, 1996]



