Cindy
Norman,#2Author of original report
Tue, January 01, 2008
I found out through the Freedom of Information Act, (any citizen can make a request for information from a federal agency), that HUD can and does cut "deals" with parties who are given Limited Denials of Participation, and they don't automatically inform the homeowner about this. The deal is usually an Indemnification Agreement, where the builder promises to pay HUD back for the loan if the homeowner defaults. If you can find evidence of this in your own file at HUD, it can be valuable leverage or evidence, especially since it's apparent that some LDP's don't make it to the enforcement stage if a deal is cut.