Variances
Frequently Asked Questions

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Mortgagees are required to submit form HUD-90041, Request for Variance Procedure, on any Loss Mitigation Option whereas all the HUD requirements have not been met. These Variances are to be submitted via the Extension and Variance Automated Requests System (EVARS).

All Variances are considered on a case-by-case basis. When preparing a Variance for Special Forbearance, Loan Modification, Partial Claim or Deed-in-Lieu, Mortgagee is to select "other button."

When preparing a Variance for the Preforeclosure Sale Program and FHA-HAMP Option, the Mortgagee is to utilize the drop down menu and select the appropriate choice. If for any reason the FHA Case Number is not found in EVARS, the Mortgagee has the option to submit the Variance request to the NSC by Fax at (405) 609-8413, or by email at Extension_Requests@hud.gov.

Variance is NOT required - PFS and/or DIL - Owner Occupancy

The mortgagor must occupy the property as a principal residence to be eligible for any of the reinstatement options (Special Forbearance, Loan Modification or Partial Claim). Mortgagees are authorized to grant reasonable exceptions to non-occupant mortgagors seeking relief through Preforeclosure Sale (PFS), or Deed-in-Lieu of Foreclosure (DIL) when it is clear that the subject property was not purchased as a rental investment, or used as a rental for more than 18 months. Justification for the above exceptions must be documented in the claim review file.