What is Default?

Default Definition

Default is defined as the failure to meet mortgage terms including not making payments and not performing other stated obligations specific to the mortgage. Unfortunately, due to the fact that most HUD multifamily loans are issued to real estate projects held by special purpose entities (SPEs)/single asset entities (SAEs), it is often impossible for a developer or investor to inject cash directly into a property to save it from a loan default.

However, HUD 232 loan borrowers are sometimes eligible for HUD 223(d) operating loss loans, which can help senior healthcare facilities recover from a period of slow business and/or reduced occupancy.

To learn more about the HUD 223a7 refinance program, fill out the form below to speak to a HUD/FHA loan expert.