Does a mortgagee have the ability to accept a DIL of foreclosure when there is an existing Partial Claim?
Yes, Mortgagee Letter 2000-05, page 37, paragraph E. Condition of Title, states, “Good and marketable title must be conveyed to the Secretary. The lender must complete a title search and may be required to secure release of junior liens and/or endorsements to the title policy. HUD will not accept title subject to most junior liens including IRS liens. However, HUD will allow liens securing repayment of Section 235 assistance payments, partial claim advances and Title I liens.
Yes, Mortgagee Letter 2000-05, page 37, paragraph E. Condition of Title, states, “Good and marketable title must be conveyed to the Secretary. The lender must complete a title search and may be required to secure release of junior liens and/or endorsements to the title policy. HUD will not accept title subject to most junior liens including IRS liens.
