24 CFR § 290.35 - Sale of HUD-held mortgages securing unsubsidized projects.

---
identifier: "/us/cfr/t24/s290.35"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "24 CFR § 290.35 - Sale of HUD-held mortgages securing unsubsidized projects."
title_number: 24
title_name: "Housing and Urban Development"
section_number: "290.35"
section_name: "Sale of HUD-held mortgages securing unsubsidized projects."
chapter_name: "OFFICE OF ASSISTANT SECRETARY FOR HOUSING—FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT"
subchapter_number: "I"
subchapter_name: "HUD-OWNED PROPERTIES"
part_number: "290"
part_name: "DISPOSITION OF MULTIFAMILY PROJECTS AND SALE OF HUD-HELD MULTIFAMILY MORTGAGES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1701z-11, 1701z-12, 1713, 1715b, 1715z-1b, 1715z-11a; 42 U.S.C. 3535(d) and 3535(i)."
regulatory_source: "61 FR 11685, Mar. 21, 1996, unless otherwise noted."
cfr_part: "290"
---


# 290.35 Sale of HUD-held mortgages securing unsubsidized projects.

HUD's policy for selling HUD-held mortgages securing unsubsidized projects is as follows:

(a) *Current mortgages* may be sold with or without FHA mortgage insurance.

(b) *Delinquent mortgages* may be sold without FHA mortgage insurance. However, delinquent mortgages will not be sold if:

(1) HUD believes that foreclosure is unavoidable; and

(2) The project securing the mortgage is occupied by very low-income tenants who are not receiving housing assistance and would be likely to pay rent in excess of 30 percent of their adjusted monthly income if HUD sold the mortgage.