www.hudclips.org 


U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, D. C. 20410-8000

July 2, 1990
OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING-FEDERAL HOUSING COMMISSIONER
MORTGAGEE LETTER 90-22
         TO:  ALL APPROVED MORTGAGEES
         SUBJECT: Change in the Application Criteria of the Claims
                   Without Conveyance of Title (CWCOT) Procedure
 
              Effective August 1, 1990, the CWCOT procedure is to be used
         only in foreclosures in which deficiency judgments are being
         pursued.  The CWCOT procedure should no longer be used merely
         because the property is vacant or non-owner occupied.  The
         Department has incurred excessive expenses to operate this
         program without achieving the desired result to reduce the number
         of Single Family properties added to the HUD inventory.
 
              All cases where a foreclosure is already in process and the
         mortgagee has notified HUD of its intention to use the CWCOT
         procedure by submitting the Form HUD-91022, Mortgagee Notice of
         Foreclosure Sale, shall be continued through the CWCOT process to
         completion.  In addition, mortgagees must continue to report the
         foreclosure sale outcome of all cases which have gone through the
         CWCOT procedure.
 
              The CWCOT procedure shall be modified at a later date for
         use in the pursuit of deficiency judgments.  In the interim,
         follow the current CWCOT procedure when pursuing a deficiency
         judgment as previously directed in Mortgagee Letter 90-8, dated
         March 14, 1990.
 
              If you have any questions, please contact your local HUD
         0ffice.
 
                                    Sincerely yours,
 
                                    ______________________________________
                                    C. Austin Fitts
                                    Assistant Secretary for
                                      Housing-Federal Housing Commissioner