Within 30 days of receiving notification that a property charge payment is outstanding, the Mortgagee must notify the Borrower, in writing:
- Funds were advanced from the Principal Limit and no funds remain in the Set-Aside to cover future semi-annual payments;
- Provide a 30-day period for the Borrower to respond to the Mortgagee explaining the circumstances that led to the non-payment;
- Recommend the Borrower speak with a HUD-Approved Housing Counselor to receive free assistance in exploring viable alternatives to comply with the terms of the mortgage; and
- Explain funds were disbursed from the Principal Limit, thus reducing the amount of HECM proceeds that will be available for future draws.