HUD has published Notice H 2012-10 “Guidelines for Assumption, Subordination, or Assignment of Mark-to-Market (M2M) Loans in Transfer of Physical Assets (TPA) and Refinance Transactions.”
The Notice removes the Mark-to-Market 3-year limitation for debt relief. There are no time limits on the authority. The notice also specifies preservation criteria – if a property transaction can meet certain preservation criteria, the deal will more easily qualify for debt relief.
A copy of the notice may be found here: http://portal.hud.gov/huddoc/12-10hsgn.pdf