# Sale of HUD-Held Multifamily Mortgages
> **US Department of Housing and Urban Development** · Interim rule. · Published 1996-02-06 · 61 FR 4580
## Document
- **Document number:** 96-2455
- **Category:** hud-fair-housing
- **Agency:** US Department of Housing and Urban Development
- **Federal Register citation:** 61 FR 4580
- **CFR reference:** 24 CFR 290
- **Publication date:** 1996-02-06
- **Docket:** Docket No. FR-3970-I-01
## Abstract

This rule adds two provisions which conform the mortgage sale regulations to Departmental policy statements made in the preamble to the proposed and final rule.<SUP>1 First, in the sale of delinquent mortgages on partially-assisted and subsidized projects, HUD will require the assumption of federal rental subsidy contracts by project purchasers, including foreclosure purchasers. In addition, mortgage purchasers may not foreclose in a manner that would terminate such assisted tenants' leases. Second, owners of partially-assisted and subsidized projects will continue to be subject to a prohibition against discriminating against certificate and voucher holders after a mortgage sale without insurance. In addition, owners of both subsidized and unsubsidized projects with mortgages that are delinquent when sold by HUD must agree to record a covenant running with the land to continue this obligation through the maturity date of the mortgage, as part of the consideration of a loan restructuring or compromise of the mortgage indebtedness with the mortgage purchaser. Alternatively, if the mortgage purchaser forecloses, this nondiscrimination obligation would become applicable to the project purchaser at foreclosure.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/1996/02/06/96-2455/sale-of-hud-held-multifamily-mortgages)
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