source:
  type: guide
  id: hud-4000-1-iii-q-acquiring-possession
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — q. Acquiring
    Possession (03/31/2022)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part III — q. Acquiring
    Possession (03/31/2022).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iii-q-acquiring-possession-full
  canonical_id: hud-4000-1-iii-q-acquiring-possession-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part III — q. Acquiring
    Possession (03/31/2022)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — q. Acquiring
      Possession (03/31/2022)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'q. Acquiring Possession (03/31/2022) On the date the deed is
      filed for recording, the Mortgagee must certify that the Property is vacant
      and free of Personal Property, unless HUD has agreed to accept title with the
      Property occupied. This, and the procedures described below, apply whether title
      is acquired by foreclosure or by DIL of Foreclosure. i. Applicable Law Protecting
      Tenants When determining compliance with the Reasonable Diligence Time Frame,
      the Mortgagee may exclude the time required to comply with federal, state, and
      local laws extending the time required to complete possessory actions. ii. Identification
      of Property Occupants Before completion of foreclosure the Mortgagee must: •
      confirm the identity of all occupants; • determine each occupant’s possible
      rights for continued occupancy under HUD’s Occupied Conveyance procedures; and
      III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward
      Mortgages 2. Default Servicing Handbook 4000.1 1305 Last Revised: 11/26/2025
      • follow HUD’s Occupied Conveyance procedures by sending occupants the Notice
      to Occupant of Pending Acquisition (NOPA) 60 to 90 Days before the Mortgagee
      expects to acquire title. iii. Notice to Occupant of Pending Acquisition (A)
      Definition The Notice to Occupant of Pending Acquisition (NOPA) is a notice
      to the Borrower and heads of household that the Mortgagee will be acquiring
      title to the Property and then conveying the Property to HUD. (B) Standard At
      least 60 Days but not more than 90 Days before the Mortgagee reasonably expects
      to acquire title, the Mortgagee must notify the Borrower and each head of household
      occupying a unit of the Property of the possibility that the Mortgagee will
      convey the Property to HUD following foreclosure. The Mortgagee is not required
      to postpone the foreclosure sale to comply with the 60-Day requirement, if the
      foreclosure sale is scheduled for less than 60 Days following the completion
      of bankruptcy proceedings. In the event the foreclosure sale is postponed, the
      NOPA is valid up to 120 Days from the date it was originally mailed. The NOPA
      must: • provide a summary of the conditions under which continued occupancy
      is permissible; • advise the Borrower: o that potential acquisition of the Property
      by HUD is pending; o that HUD requires Properties be vacant at the time of conveyance
      to HUD, unless the Borrower or other occupant can meet the regulatory conditions
      for continued occupancy, the habitability criteria, and the eligibility criteria;
      o of the process for requesting to remain in the Property; and o the Property
      must otherwise be vacated before the scheduled time of acquisition; and • be
      sent via certified mail or with a signature confirmation service to ensure receipt
      of the notice by all required occupants. (C) Required Documentation The Mortgagee
      must provide to HUD’s MCM by uploading into P260: • an electronic copy of each
      NOPA; and • all documentation and information obtained regarding existing leases
      and tenancies. III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing
      Programs Forward Mortgages 2. Default Servicing Handbook 4000.1 1306 Last Revised:
      11/26/2025 iv. Occupied Conveyance Requests to HUD (A) Definition An Occupied
      Conveyance is the conveyance to HUD of a Property that is not vacant. (B) Standard
      HUD notifies the Mortgagee if it has received an occupant’s request to remain
      in the Property. If the Mortgagee has not received such notification from HUD
      within 45 Days after sending the notice, the Mortgagee must convey the Property
      as vacant, unless otherwise directed by the MCM. (C) Approved Occupied Conveyance
      Requests If HUD grants Occupied Conveyance, the Mortgagee must convey the Property
      occupied under HUD’s Occupied Conveyance regulations and procedures provided
      by the MCM per 24 CFR § 203.670. (D) Denied Occupied Conveyance Requests If
      HUD denies Occupied Conveyance, the Mortgagee must determine if there is occupancy
      protection under federal, state, or local law that would require the Mortgagee
      to delay possessory action. If the Mortgagee determines that such laws are applicable,
      the Mortgagee must: • follow those requirements before evicting the occupant;
      and • attempt to obtain documentation of existing leases and tenancies for the
      Servicing File and the Claim File as evidence of the applicability of the occupancy
      protection laws and the additional time needed to comply with them. v. Rents
      under Bona Fide Leases The Mortgagee must attempt to: • collect rents payable
      under bona fide leases and tenancies providing post- foreclosure occupancy rights;
      and • in the event of Default, take possessory action pursuant to the rental
      contract terms and applicable law. The Mortgagee must reflect any rents it received
      during the term of the bona fide lease or tenancy on its claim for mortgage
      insurance benefits. vi. Preservation and Protection Costs due to Extended Lease
      or Tenancy The Mortgagee may request reimbursement of additional routine P&P
      costs, including lawn maintenance and inspections that are incurred as a result
      of an extended lease or tenancy under applicable law. III. SERVICING AND LOSS
      MITIGATION A. Title II Insured Housing Programs Forward Mortgages 2. Default
      Servicing Handbook 4000.1 1307 Last Revised: 11/26/2025 vii. Cash for Keys Consideration
      (A) Definition Cash for Keys is a monetary incentive offered to occupants for
      vacating the Property as an alternative to legal eviction after foreclosure.
      (B) Standard If property occupants fail to vacate the Property after receiving
      the first Notice to Quit, the Mortgagee may offer up to $3,000 per dwelling
      in exchange for the occupants vacating the Property within 30 Days of the Cash
      for Keys offer. Before releasing the funds, the Mortgagee must inspect the Property
      to ensure that: • the Property is in Broom-swept Condition; and • all built-in
      appliances and fixtures remain in the Property. (C) Required Documentation The
      Mortgagee must document in the Servicing File and the Claim File the date and
      amount of the Cash for Keys offer, the date of the actual vacancy, and the date
      the occupant received the funds. viii. Evictions and Eviction Personnel (A)
      Standard The Mortgagee must ensure that evictions are conducted in accordance
      with state and local law and send: • no more than four people for a townhouse
      or condominium to complete the eviction; and • no more than six people for a
      Single Family detached dwelling to complete the eviction. (B) Required Documentation
      The Mortgagee must include in the Servicing File and the Claim File: • photographs
      showing that all Personal Property and debris have been removed from the Property
      as part of the eviction; • the number of people required and present to complete
      the eviction; • whether the eviction was canceled or re-scheduled; and • documentation
      supporting eviction costs, including costs due to state or local law requirements
      for eviction time frame, removal, or storage. III. SERVICING AND LOSS MITIGATION
      A. Title II Insured Housing Programs Forward Mortgages 2. Default Servicing
      Handbook 4000.1 1308 Last Revised: 11/26/2025'
  judgment: false
