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: 24CFR203.670]

[Page 226]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
PART 203--SINGLE FAMILY MORTGAGE INSURANCE--Table of Contents
 
                  Subpart C--Servicing Responsibilities
 
Sec. 203.670  Conveyance of occupied property.

    (a) It is HUD's policy to reduce the inventory of acquired 
properties in a manner that expands homeownership opportunities, 
strengthens neighborhoods and communities, and ensures a maximum return 
to the mortgage insurance fund.
    (b) The Secretary will accept conveyance of an occupied property 
containing one to four residential units if the Secretary finds that:
    (1) An individual residing in the property suffers from a temporary, 
permanent, or long-term illness or injury that would be aggravated by 
the process of moving from the property, and that the individual meets 
the eligibility criteria in Sec. 203.674(a);
    (2) State or local law prohibits the mortgagee from evicting a 
tenant residing in the property who is making regular monthly payments 
to the mortgagor, or prohibits eviction for other similar reasons beyond 
the control of the mortgagee; or
    (3) It is in the Secretary's interest to accept conveyance of the 
property occupied under Sec. 203.671, the property is habitable as 
defined in Sec. 203.673, and, except for conveyances under 
Sec. 203.671(d), each occupant who intends to remain in the property 
after the conveyance meets the eligibility criteria in Sec. 203.674(b).
    (c) HUD consents to accept good marketable title to occupied 
property where 90 days have elapsed since the mortgagee notified HUD of 
pending acquisition, the Department has notified the mortgagee that it 
was considering a request for continued occupancy, and no subsequent 
notification from HUD has been received by the mortgagee.

[53 FR 874, Jan. 14, 1988, as amended at 56 FR 46967, Sept. 16, 1991; 58 
FR 54246, Oct. 20, 1993; 61 FR 36266, July 9, 1996]



