A Borrower facing Imminent Default is defined as a Borrower who is current or less than 30 Days past due on their Mortgage Payment and is experiencing a significant, documented reduction in income or some other hardship that will prevent them from making the next required Mortgage Payment during the month that it is due.
The Mortgagee must obtain documentation necessary to verify that the Borrower is experiencing a significant reduction in income or some other hardship that will prevent them from making the next required Mortgage Payment during the month that it is due.
The Mortgagee must include in its servicing file documentation of the basis for the determination that the Borrower’s financial condition will result in a Default.
Any questions may be directed to the FHA Resource Center Toll-Free Telephone Number at (800) CALLFHA (225-5342) or by email to answers@hud.gov. Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at (800) 877-8339.
See policy in Handbook 4000.1 III.A.2.g The definition is also located in Handbook 4000.1 Glossary and Acronyms. Both of these documents are available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh