WASHINGTON (2/7/14)--There is a new Department of Housing and Urban Development (HUD) foreclosure brochure and all Federal Housing Administration-approved mortgagees must use it starting Feb. 10.
HUD requires FHA-approved mortgage lenders to send a cover letter with the brochure to delinquent borrowers with an FHA-approved mortgages no earlier than the 32nd day of delinquency, but no later than the 60th day.
The new brochure is entitled "Save Your House: Tips to Avoid Foreclosure" and it replaces
the previously published "How to Avoid Foreclosure."
HUD issued Mortgagee Letter 2014-1 to announce the updated brochure and review its proper use. For instance, the letter notes that the cover letter sent with the brochure must include:
- Highly visible information about the availability of language access services offered by the servicer for mortgagors with limited English proficiency (this information must be provided, at a minimum, in Spanish and must include an advisement to seek translation or other language assistance);
- The following information related to the mortgage loan: the number of late payments; the total amount of any late charges incurred; the month of each late payment (e.g., June, July); and, the original due date of each late payment;
- The servicer's mailing address and specific contact information of any assigned personnel;
- A request for the mortgagor's current financial information;
- Toll-free telephone numbers for mortgagors needing to contact the servicer's loss mitigation/ customer assistance personnel; and,
- The toll-free telephone number for mortgagors seeking information on HUD-approved housing counseling agencies, (800) 569-4287, along with the toll-free Federal Information Relay Service number of (800) 877-8339 for mortgagors who may need a Telecommunication Device for the Deaf (TDD) to call the housing counseling line.
Use the resource link to access the complete HUD letter.