How soon from date of default must a mortgagee take loss mitigation action or commence foreclosure?

The Mortgagee must take loss mitigation action or commence foreclosure, if loss mitigation is not feasible, within six months of the date of Default, or within such additional time that HUD has permitted through an automatic extension or approved via Extensions and Variances Automated Requests System (EVARS).
The Mortgagee must notify each Borrower, co-signer, and any other party requiring notice by state law that the Mortgage is in Default.

Additional questions may be directed to the HUD National Servicing Center at (877) 622-8525.

See policy in Handbook 4000.1 Section III.A.2.h. at:

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-04020