FHA issued Mortgagee Letter (ML) 2025-13 rescinding the policy guidance announced in Mortgagee Letters 2022-01 and 2022-08. Specifically, FHA:
- Removed the exclusive 30-day sales period for owner-occupants, HUD-approved nonprofits, and government entities as part of the Claims Without Conveyance of Title (CWCOT) post-foreclosure sale process, and
- Reverted the exclusive listing period on the HUD HomeStore website for Real Estate Owned (REO) properties from 30 days to the previous exclusive listing period of 15 days for owner-occupants, HUD-approved nonprofits, and government entities.
The CWCOT provisions of this ML must be implemented for all post-foreclosure sales associated with defaulted FHA-insured mortgages scheduled to occur on or after May 30, 2025 (servicers may, however, implement the provisions immediately). The REO provisions of this ML must be implemented for all HUD REO properties listed for sale on or after May 30, 2025.
Click to view the FHA Mortgagee Letter 2025-13: https://www.tenaco.com/wp-content/uploads/2025/05/FHA-Mortgagee-Letter-2025-13-04-28-25.pdf
