What Notices must be sent on the 32nd day but not later than the 60th day of delinquency?

Beginning on the 32nd Day but no later than the 60th Day from the date payment was due, the Mortgagee must send the:
  • Delinquency Notice Cover Letter; and
  • “Save your Home – Tips to Avoid Foreclosure” pamphlet (form HUD-2008-5-FHA).
 
Delinquency Notice Cover Letter
The Mortgagee must send the “Save Your Home: Tips to Avoid Foreclosure” brochure with a cover letter that includes:
  • highly visible information about any availability of language access services offered by the Mortgagee for Borrowers with limited English proficiency (this information must be provided, at a minimum, in Spanish and must include an advisement to seek translation or other language assistance);
  • the following information related to the Mortgage:
    • number of late payments;
    • total amount of any Late Charges incurred;
    • the month of each late payment; and
    • the original due date of each late payment;
  • the Mortgagee’s mailing address and toll-free telephone numbers for Borrowers needing to contact the Mortgagee’s assigned loss mitigation and/or customer assistance personnel;
  • a request for current Borrower financial information necessary for Loss Mitigation analysis;
  • toll-free telephone numbers for Borrowers needing to contact the Mortgagee’s loss mitigation and/or customer assistance personnel; and
  • the toll-free telephone number for Borrowers seeking information on HUD-approved housing counseling agencies, (800) 569-4287, along with the toll-free Federal Information Relay Service number of (800) 877-8339 for Borrowers who may need a Telecommunication Device for the Deaf (TDD) to call the housing counseling line.
 
“Save Your Home: Tips to Avoid Foreclosure” Brochure
The brochure (form HUD-2008-5-FHA) is available in English, Spanish, Chinese, and Vietnamese. Mortgagees may either obtain the brochure by accessing HUD’s Direct Distribution Center or reproduce electronic versions of the brochure at their own expense. The Mortgagee may not change the contents of the brochure in any way.

The Mortgagee must resend the cover letter and accompanying “Save your Home: Tips to Avoid Foreclosure” brochure (form HUD-2008-5-FHA) any time the Mortgage becomes 45 Days Delinquent unless the beginning of the new delinquency occurs less than six months after a prior notice and pamphlet was mailed.
 
The Mortgagee must document in their servicing file the dates on which it sent the Delinquency Notice Cover Letter and “Save Your Home: Tips to Avoid Foreclosure” brochure.
 
Exception for Borrowers in Bankruptcy
The Mortgagee is not required to send the cover letter and “Save Your Home: Tips to Avoid Foreclosure” brochure if the Borrower has filed bankruptcy before becoming 45 Days Delinquent, and, in the opinion of the Mortgagee’s legal counsel, providing the cover letter and brochure would be a violation of the automatic stay. The Mortgagee must send the cover letter and “Save Your Home: Tips to Avoid Foreclosure” once the automatic stay is lifted. The Mortgagee must document this bankruptcy-related exception in the servicing file.
 
Electronic versions of form HUD-2008-5-FHA, “Save Your Home: Tips to Avoid Foreclosure” Brochure are located at: https://www.hud.gov/program_offices/administration/hudclips/forms/hud2
 
The form HUD-2008-5-FHA may also be ordered online through HUD's Direct Distribution Center at:
https://www.hud.gov/program_offices/administration/dds
 
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.x. 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-04068