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

July 31, 1986
OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING-FEDERAL HOUSING COMMISSIONER
Mortgagee Letter 86-14
       TO:     ALL APPROVED MORTGAGEES
       SUBJECT:    Tax Bills on Single Family Properties and
                     Mortgages Assigned to the Department
 
             Last year, over 15,000 tax bills were received at HUD
       Headquarters on properties and HUD-held mortgages.
       Understandably, a large portion of the misrouted bills
       resulted from the title to the property or the assignment of
       the mortgage being recorded in the name of the "Secretary of
       HUD, Washington, DC" and the taxing authority inscribing that
       information on the tax records.  This has created a major
       problem.  These bills had to be rerouted to the appropriate
       field office for payment which in turn caused tremendous
       delays, assessment of interest and penalties for late
       payments.  In some instances, nonpayment of the tax has
       resulted in the sale of the property at a sheriff's sale.
 
             To correct this problem, mortgagees must henceforth
       record deeds to HUD or assigned mortgages in the name of the
       Secretary of Housing and Urban Development, his successors and
       assigns, and insert the address of the local jurisdictional
       field office.  For conveyed deeds after foreclosure, the
       address of the local field office should include "Attention:
       Single Family Property Disposition Branch." For assigned
       mortgages, the address of the local field office should
       include "Attention:  Single Family Loan Management Branch."
 
             In addition, we request that when mortgagees notify
       taxing authorities of a change in mortgagee, that the
       mortgagee instruct the taxing authority to send tax bills to
       the mortgagee acquiring the accounts at the new address
       provided.
 
             Questions concerning this letter may be directed to the
       local HUD office having jurisdiction or to the Director of the
       Single Family Servicing Division, (202) 755-6672.
 
                                 Very sincerely yours,
 
                                 Silvio J. DeBartolomeis
                                 General Deputy Assistant Secretary
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