---
kind: "section"
citation: "24 C.F.R. § 1005.809"
title: "24"
number: "1005.809"
heading: "Claim types."
url: "https://uscodex.org/cfr/24/1005.809"
---

# §1005.809. Claim types.


HUD recognizes five different claim types. The Servicer must submit a claim based upon the type of property disposition. The Servicer shall submit claims within timeframes established below or any extended timeframe prescribed by [Section 184](/cfr/24/184.md) Program Guidance. The Claim types are:

- (a) **Conveyance.** When the property is deeded to HUD through foreclosure:
  - (1) The Servicer must submit a claim under [§ 1005.807(a)](/cfr/24/1005.807.md?p=a) to HUD no later than 2 business days from the date the deed to HUD is executed.
  - (2)
    - (i) **Fee simple land.** The claim must include the final title policy evidencing HUD's ownership through foreclosure or transfer of the ownership of the property through deed-in-lieu to HUD, in accordance with [§ 1005.817](/cfr/24/1005.817.md).
    - (ii) **Trust Land.** The claim must include a certified Title Status Report evidencing HUD's property interest through foreclosure.
  - (3) In cases where the Servicer is unable to comply with [paragraph (a)(2)(ii)](#a-2-ii) of this section, the Servicer shall submit the claim pending the certified Title Status Report in accordance with the time frame specified in [paragraph (a)(1)](#a-1) of this section.
  - (4) Servicers must submit claims under [§ 1005.807(b)](/cfr/24/1005.807.md?p=b) no later than 15 days following the submission of a claim under [§ 1005.807(a)](/cfr/24/1005.807.md?p=a).
- (b) **Assignment of the loan.** When the Holder assigns the [Section 184](/cfr/24/184.md) Guaranteed Loan to HUD:
  - (1) The Servicer must submit a claim under § [1005.807(a)](/cfr/24/1005.807.md?p=a) and [(b)](/cfr/24/1005.807.md?p=b) no later than 45 days from the date of the assignment of the [Section 184](/cfr/24/184.md) Guaranteed Loan to HUD is executed.
  - (2)
    - (i) **Trust Land.** The claim must include the recorded assignment and a certified Title Status Report evidencing the assignment of the mortgage to HUD.
    - (ii) **Fee simple land.** The claim must include the final title policy providing coverage through the transfer of the mortgage to HUD.
  - (3) In cases where the Servicer is unable to comply with [paragraph (b)(2)(i)](#b-2-i) of this section, the Servicer shall submit the claim pending the certified Title Status Report in accordance with the time frame specified in [paragraph (b)(1)](#b-1) of this section.
  - (4) At the time of assignment of the [Section 184](/cfr/24/184.md) Guaranteed Loan, the Servicer shall certify to HUD that:
    - (i) **Priority of Section 184 Guaranteed Loan.** The [Section 184](/cfr/24/184.md) Guaranteed Loan has priority over all judgments, mechanics' and materialmen's liens, or any other liens, regardless of when such liens attached, unless approved by HUD;
    - (ii) **Amount due.** The amount reported to HUD in accordance with [§ 1005.707(d)](/cfr/24/1005.707.md?p=d) prior to assignment is verified to be due and owing under the [Section 184](/cfr/24/184.md) Guaranteed Loan;
    - (iii) **Offsets or counterclaims and authority to assign.** There are no offsets or counterclaims thereto and the Holder has the authority to assign; and
    - (iv) The assignment of the [Section 184](/cfr/24/184.md) Guaranteed Loan to HUD meets the requirements of [§ 1005.765](/cfr/24/1005.765.md).
- (c) **Post-foreclosure claims without conveyance of title.** When a third-party purchases the property at foreclosure, the Servicer must submit a claim under § [1005.807(a)](/cfr/24/1005.807.md?p=a) and [(b)](/cfr/24/1005.807.md?p=b) to HUD no later than 30 days from the date the property is conveyed to the third-party. If the Holder purchases the property at foreclosure and subsequently sells the property, the Servicer may submit a claim under this section.
- (d) **Pre-foreclosure sale, deed-in-lieu or lease-in-lieu.** When a property is sold or conveyed prior to foreclosure in accordance with [§ 1005.753](/cfr/24/1005.753.md) or [§ 1005.755](/cfr/24/1005.755.md), the Servicer must submit a claim under § [1005.807(a)](/cfr/24/1005.807.md?p=a) and [(b)](/cfr/24/1005.807.md?p=b) to HUD no later than 30 days from the date the sale or conveyance is executed.
- (e) **Supplemental claim.** The Servicer shall be limited to one supplemental claim for each Claim under submission categories in [paragraphs (a) through (d)](#a..d) of this section.
  - (1) The supplemental claim shall be limited to:
    - (i) Reasonable eligible expenses incurred up to the date of conveyance of the property or assignment of the [Section 184](/cfr/24/184.md) Guaranteed Loan, when invoices are received after the payment of the claim under [§ 1005.807(b)](/cfr/24/1005.807.md?p=b); or
    - (ii) **Calculation error(s) made by either the Servicer or HUD.**
  - (2) Supplemental claims must be submitted within six months of the claim submission under [§ 1005.807(b)](/cfr/24/1005.807.md?p=b). Supplemental claims received after six months of the claim submission will not be reviewed or paid by HUD.
  - (3) Any supplemental claim paid by HUD shall be considered final satisfaction of the Loan Guarantee Certificate.

## Notes

### Authority

Authority: 12 U.S.C. 1715z-13a; 15 U.S.C. 1639c; 42 U.S.C. 3535(d).

### Source

Source: 89 FR 20056, Mar. 20, 2024; 89 FR 22084, Mar. 29, 2024, unless otherwise noted.