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Home Foreclosures: 38 C.F.R. § 36.4307 Interest rate reduction refinancing loan

(a) Pursuant to 38 U.S.C. 3710(a)(8), (a)(9)(B)(i), and (a)(11), a veteran may refinance an existing VA guaranteed, insured, or direct loan to reduce the interest rate payable on the existing loan provided that all of the following requirements are met:

(1) The new loan must be secured by the same dwelling or farm residence as the loan being refinanced.

(2) The veteran owns the dwelling or farm residence securing the loan and

Home Foreclosures: 38 C.F.R. § 36.4350 Servicing procedures for holders

(a) Establishment of loan servicing program. The holder of a loan guaranteed or insured by the Secretary shall develop and maintain a loan servicing program which follows accepted industry standards for servicing of similar type conventional loans. The loan servicing program established pursuant to this section may employ different servicing approaches to fit individual borrower circumstances and avoid establishing a fixed routine. However, it must incorporate each of the provisions specified in paragraphs (b) through (l) of this section.

Home Foreclosures: 38 C.F.R. § 36.4314 Advances and other charges

(a) A holder may advance any amount reasonably necessary and proper for the maintenance or repair of the security, or for the payment of accrued taxes, special assessments, ground or water rents, or premiums on fire or other casualty insurance against loss of or damage to such property and any such advance so made may be added to the guaranteed or insured indebtedness. A holder may also advance the one-half of one percent funding fee due on a transfer under 38 U.S.C. 3714 when this is not paid at the time of transfer.

Home Foreclosures: 38 C.F.R. § 36.4315 Loan modifications

(a) The terms of any guaranteed loan may be modified by written agreement between the holder and the borrower, without prior approval of the Secretary, if all of the following conditions are met:

(1) The loan is in default;

(2) The event or circumstances that caused the default has been or will be resolved and it is not expected to re-occur;

Home Foreclosures: 38 C.F.R. § 36.4319 Servicer loss-mitigation options and incentives

(a) The Secretary will pay a servicer in tiers one, two, or three an incentive payment for each of the following successful loss-mitigation options or alternatives to foreclosure completed: repayment plans, special forbearance agreements, loan modifications, compromise sales, and deeds-in-lieu of foreclosure. Only one incentive payment will be made with respect to any default required to be reported to the Secretary pursuant to § 36.4317(c). No incentive payment will be made to a servicer in tier four.

Home Foreclosures: 12 U.S.C. § 1715u. Authority to assist mortgagors in default

(a) Loss mitigation. Upon default or imminent default, as defined by the Secretary of any mortgage insured under this subchapter, mortgagees shall engage in loss mitigation actions for the purpose of providing an alternative to foreclosure (including but not limited to actions such as special forbearance, loan modification, preforeclosure sale, support for borrower housing counseling, subordinate lien resolution, borrower incentives, and deeds in lieu of foreclosure, as required, but not including assignment of mortgages to the Secretary under section

Home Foreclosures: 24 C.F.R. § 203.500 Mortgage servicing generally

This subpart identifies servicing practices of lending institutions that HUD considers acceptable for mortgages insured by HUD. Failure to comply with this subpart shall not be a basis for denial of insurance benefits, but failure to comply will be cause for imposition of a civil money penalty, including a penalty under § 30.35(c)(2), or withdrawal of HUD’s approval of a mortgagee. It is the intent of the Department that no mortgagee shall commence foreclosure or acquire title to a property until the requirements of this subpart have been followed.

Home Foreclosures: 24 C.F.R. § 203.608 Reinstatement

The mortgagee shall permit reinstatement of a mortgage, even after the institution of foreclosure proceedings, if the mortgagor tenders in a lump sum all amounts required to bring the account current, including foreclosure costs and reasonable attorney’s fees and expenses properly associated with the foreclosure action, unless: (a) The mortgagee has accepted reinstatement after the institution of foreclosure proceedings within two years immediately preceding the commencement of the current foreclosure action, (b) reinstatement will preclude foreclosure following a subs

Home Foreclosures: 24 C.F.R. § 203.600 Mortgage collection action

Subject to the requirements of this subpart, mortgagees shall take prompt action to collect amounts due from mortgagors to minimize the number of accounts in a delinquent or default status. Collection techniques must be adapted to individual differences in mortgagors and take account of the circumstances peculiar to each mortgagor.

Home Foreclosures: 24 C.F.R. § 203.614 Special forbearance

If the mortgagee finds that a default is due to circumstances beyond the mortgagor’s control, as defined by HUD, the mortgagee may grant special forbearance relief to the mortgagor in accordance with the conditions prescribed by HUD.

[60 Fed. Reg. 57,678 (Nov. 16, 1995); 61 Fed. Reg. 35,020 (July 3, 1996); 62 Fed. Reg. 60,129 (Nov. 6, 1997)]

Home Foreclosures: 24 C.F.R. § 203.602 Delinquency notice to mortgagor

The mortgagee shall give notice to each mortgagor in default on a form supplied by the Secretary or, if the mortgagee wishes to use its own form, on a form approved by the Secretary, no later than the end of the second month of any delinquency in payments under the mortgage. If an account is reinstated and again becomes delinquent, the delinquency notice shall be sent to the mortgagor again, except that the mortgagee is not required to send a second delinquency notice to the same mortgagor more often than once each six months.

Home Foreclosures: 24 C.F.R. § 203.616 Mortgage modification

The mortgagee may modify a mortgage for the purpose of changing the amortization provisions by recasting the total unpaid amount due for a term not exceeding 360 months. The mortgagee must notify HUD of such modification in a format prescribed by HUD within 30 days of the execution of the modification agreement.

[61 Fed. Reg. 35,020 (July 3, 1996); 62 Fed. Reg. 60,130 (Nov. 6, 1997)]

Home Foreclosures: 24 C.F.R. § 203.605 Loss mitigation performance

(a) Duty to mitigate. Before four full monthly installments due on the mortgage have become unpaid, the mortgagee shall evaluate on a monthly basis all of the loss mitigation techniques provided at § 203.501 to determine which is appropriate. Based upon such evaluations, the mortgagee shall take the appropriate loss mitigation action. Documentation must be maintained for the initial and all subsequent evaluations and resulting loss mitigation actions.

Home Foreclosures: 24 C.F.R. § 203.606 Pre-foreclosure review

(a) Before initiating foreclosure, the mortgagee must ensure that all servicing requirements of this subpart have been met. The mortgagee may not commence foreclosure for a monetary default unless at least three full monthly installments due under the mortgage are unpaid after application of any partial payments that may have been accepted but not yet applied to the mortgage account.

Home Foreclosures: Amendment History

[July 15, 1949, ch. 338, tit. V, § 502, 63 Stat. 433; Pub. L. No. 87-70, tit. VIII, § 801(b), 75 Stat. 186 (June 30, 1961); Pub. L. No. 87-723, § 4(a)(2), 76 Stat. 671 (Sept. 28, 1962); Pub. L. No. 89-117, tit. X, § 1002, 79 Stat. 497 (Aug. 10, 1965); Pub. L. No. 89-754, tit. VIII, § 802, 80 Stat. 1282 (Nov. 3, 1966); Pub. L. No. 93-383, tit. V, § 505(b), 88 Stat. 693 (Aug. 22, 1974); Pub. L. No. 95-128, tit. V, § 502(a), 91 Stat. 1139 (Oct. 12, 1977); Pub. L. No. 96-153, tit. V, § 503, 93 Stat. 1134 (Dec. 21, 1979); Pub. L. No. 96-399, tit. V, § 514(a), 94 Stat. 1671 (Oct. 8, 1980); Pub.

Home Foreclosures: Amendment History

[July 15, 1949, ch. 338, tit. V, § 502, 63 Stat. 433; Pub. L. No. 87-70, tit. VIII, § 801(b), 75 Stat. 186 (June 30, 1961); Pub. L. No. 87-723, § 4(a)(2), 76 Stat. 671 (Sept. 28, 1962); Pub. L. No. 89-117, tit. X, § 1002, 79 Stat. 497 (Aug. 10, 1965); Pub. L. No. 89-754, tit. VIII, § 802, 80 Stat. 1282 (Nov. 3, 1966); Pub. L. No. 93-383, tit. V, § 505(b), 88 Stat. 693 (Aug. 22, 1974); Pub. L. No. 95-128, tit. V, § 502(a), 91 Stat. 1139 (Oct. 12, 1977); Pub. L. No. 96-153, tit. V, § 503, 93 Stat. 1134 (Dec. 21, 1979); Pub. L. No. 96-399, tit. V, § 514(a), 94 Stat. 1671 (Oct. 8, 1980); Pub.

Home Foreclosures: 24 C.F.R. § 206.23 Shared appreciation.

(a) Additional interest based on net appreciated value. Any mortgage for which the mortgagee has chosen the shared premium option (§ 206.107) may provide for shared appreciation. At the time the mortgage becomes due and payable or is paid in full, whichever occurs first, the borrower shall pay an additional amount of interest equal to a percentage of any net appreciated value of the property during the life of the mortgage.

Home Foreclosures: 24 C.F.R. § 206.136 Conditions for assignment.

(a) In order for a HECM to be eligible for assignment, the following must be met:

(1) Priority of mortgage to liens. The mortgage is prior to all mechanics' and materialmen's liens, regardless of when such liens attach, and prior to all liens and encumbrances, or defects which may arise based on any act or omission by the mortgagee except such liens or other matters as may have been approved by the Commissioner.

Home Foreclosures: 24 C.F.R. § 206.55 Deferral of due and payable status for Eligible Non–Borrowing Spouses.

(a) Deferral Period. If the last surviving borrower predeceases an Eligible Non–Borrowing Spouse, and if the requirements of paragraph (d) of this section are satisfied, the due and payable status will be deferred for as long as the Eligible Non–Borrowing Spouse continues to meet the Qualifying Attributes in paragraph (c) of this section and the requirements of paragraphs (d) and (e) of this section.

(b) End of Deferral Period.