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Financial Distress Event

FHA Single Family Housing Policy Handbook Glossary November 26 2025

Updated 08-20-2026

Financial Distress Event

Financial Distress Event refers to a Condominium Project or builder/developer that has: • sought protection under bankruptcy law; • been placed into receivership (mandated or voluntary); • been subject to foreclosure or any seizure of assets by creditors; or • offered a Deed-in-Lieu (DIL) of Foreclosure.

FHA Single Family Housing Policy Handbook Glossary November 26 2025

p. 18

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