Mortgage default.
Mortgage default. The PHA must terminate voucher homeownership assistance for any member of family receiving homeownership assistance that is dispossessed from the home pursuant to a judgment or order of foreclosure on any mortgage (whether FHA-insured or non-FHA) securing debt incurred to purchase the home, or any refinancing of such debt. The PHA, in its discretion, may permit the family to move to a new unit with continued voucher rental assistance. However, the PHA must deny such permission, if:
(1) The family defaulted on an FHA-insured mortgage; and
(2) The family fails to demonstrate that:
(i) The family has conveyed, or will convey, title to the home, as required by HUD, to HUD or HUD's designee; and
(ii) The family has moved, or will move, from the home within the period established or approved by HUD.