24 C.F.R. § 1005.839
Payment of claim: interest on unpaid principal balance
HUD shall pay interest on the unpaid principal balance from the date of default to the earlier of the following:
(a) The execution of deed-in-lieu/lease-in-lieu of foreclosure;
(b) The execution of the conveyance to either Holder, HUD or a third-party;
(c) The execution of the assignment of the Section 184 Guaranteed Loan to HUD;
(d) The expiration of the reasonable diligence timeframe; or
(e) Other event as prescribed by Section 184 Program Guidance.