(a) HUD will require that the property be conveyed vacant if the occupant fails to request permission to continue to occupy within the time period specified in Sec. 203.676, or fails to request a conference or to appeal a decision to deny occupied conveyance within the time period specified in Sec. 203.677(a).
(b) If the mortgagee has not been notified by HUD, within 45 days of the date of the mortgagee's notification of pending acquisition, that a request for continued occupancy is under consideration, the mortgagee shall convey the property vacant, unless otherwise directed by HUD. [53 FR 875, Jan. 14, 1988, and 53 FR 8626, Mar. 16, 1988]