November 17, 2009

Deficiency Judgments FHA Loans

Filed under: FHA Loan,Judgment

The Department has already begun requesting or requiring mortgagees to obtain deficiency judgments in instances where the mortgagors are non-occupant owners; have previously defaulted on one or more FHA-insured mortgages resulting in the payment of claim(s); or are “walkaways,” having abandoned their mortgage payment obligations despite their apparent continued ability to pay.  This will continue to occur where the pursuit of deficiency judgments is consistent with State law.

HUD ML 89-14

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