Servicing Guide

Published September 18, 2018

E-1.2-04: Timing of the Foreclosure Referral for Government Mortgage Loans (11/12/2014)

If the borrower does not pursue FHA’s foreclosure prevention alternatives (or is not eligible for them), the servicer must refer the mortgage loan to a law firm to begin foreclosure proceedings in compliance with FHA’s guidelines if permitted by applicable law.

The servicer of a VA-guaranteed mortgage loan must send all notices the VA requires to notify the borrower of his or her breach of the terms of the mortgage loan and refer the mortgage loan to a law firm to begin foreclosure proceedings in compliance with VA guidelines if permitted by applicable law.