![]() However, if a property appraiser maintains records on these types of non. For more information, contact HUD’s National Servicing Center at 88 or Persons with hearing or speech impairments may access this number via TDD/TTY by calling 1-877-TDD-2HUD. An arms length transaction is a sale or lease transaction for real property. The clarifications issued are effective immediately. According to HUD’s revised definition: "An arm's length transaction is characterized by the following: (1) the absence of a relation between the buyer and seller (2) a selling price and other conditions that would prevail in an open market environment (3) transaction costs paid by the seller that are considered both reasonable and customary for the market in which the property is located and (4) the adherence to ethical standards of conduct by all parties involved in the HECM short sale transaction, including the borrowers (or the estate), mortgagees and appraisers." ![]() In addition, the mortgagee letter revised the definition of “arms length transaction,” which is required in any circumstance where a mortgagee agrees to the acceptance of less than the full mortgage balance. Citing confusion about HECM’s status as a “non-recourse loan,” HUD has clarified that “non-recourse” means simply that if the borrower (or estate) does not pay the balance when due, the mortgagee’s remedy is limited to foreclosure and the borrower will not be personally liable for any deficiency resulting from the foreclosure. ![]() Department of Housing and Urban Development clarified its requirements for repayment of Home Equity Conversion Mortgages and for the termination of an HECM mortgage. ![]()
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