When is an FHA-insured mortgage considered delinquent or in default?

A mortgage account is Delinquent any time a payment is due and not paid.
If the Borrower fails to make any payment or perform any other obligation under the Mortgage, and such failure continues for a period of 30 Days, the Mortgage is considered in Default.
The Date of Default is 30 Days after:
  • the first uncorrected failure to perform any obligation under the Mortgage; or
  • the first failure to make a monthly payment which subsequent payments by the Borrower are insufficient to cover when applied to the overdue monthly payment in the order in which they become due.
The Mortgagee must ensure all FHA-insured Mortgages in Delinquency or Default are serviced in accordance with FHA requirements and all applicable laws.
For the purpose of determining the date of default and timelines related to default, HUD considers all months to have 30 Days.
See policy in Handbook 4000.1, Section III.A.2.a. The Default and Delinquency definitions are also located in Handbook 4000.1 Glossary and Acronyms. Both of these documents are at:   https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-03912