Are there specialized collection techniques for Early Payment Defaults and Re-Defaults?

Yes, for Borrowers at risk of Early Payment Default or Re-Default, the Mortgagee must:
  • commence telephone contact by the 10th Day after the first missed payment to remind Borrowers of Mortgage Payment timeframes;
  • make a minimum of two calls per week after the 10th Day of delinquency, until:
    • contact is established;
    • the Mortgagee determines that the phone contact information is inaccurate, or no longer in service; or
    • until the Mortgagee determines through an Occupancy Inspection that the Property is vacant or abandoned; and
  • make reasonable efforts to obtain an alternate phone number and/or follow up with the Borrower using other methods of communication until contact is established.
Guidance for specialized collection techniques for early payment defaults and re-defaults is located in Handbook 4000.1 III.A.2.h.iv. at

Any questions may be directed to the FHA Resource Center Toll-Free Telephone Number at (800) CALLFHA (225-5342) or by email to  Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at (800) 877-8339. 

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-04262