www.hudclips.org 


U. S. Department of Housing and Urban Development
Washington, D.C. 20410-8000

 
September 29, 1997
 
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
 
MORTGAGEE LETTER 97-44
 
MEMORANDUM FOR: ALL APPROVED MORTGAGEES
 
ATTENTION: SINGLE FAMILY SERVICING MANAGERS
 
SUBJECT: Revised HUD-PA-426, HOW TO AVOID FORECLOSURE (May 1997)
 
     This is to advise all HUD-approved lenders that the
brochure, HUD-PA-426-H, SAVING YOUR HOME, March 1995, has been
revised as of May 1997.  The brochure is now called HUD-PA-426,
HOW TO AVOID FORECLOSURE (May 1997).
 
     The HOW TO AVOID FORECLOSURE brochure is redesigned to
delete references to the Mortgage Assignment Program which was
terminated in April of 1996.  The brochure now concentrates
exclusively on the new Loss Mitigation Program options available
to delinquent homeowners.
 
     You may request copies of the brochure at no cost by
contacting the Department's Customer Service Center at 1-800-767-7468.
You may also order the brochure electronically from the
Consumer Service Center's web site (www.hud.gov/odintro.html).
You may acquire the brochure by accessing the HUD Loss Mitigation
Home Page (www.hud.gov/fha/comp/mitig/mitihome.html).
 
     You may reproduce the brochure at your own expense; however,
you may not change its contents in any way.
 
NOTIFICATION TO HOMEOWNER
 
     You must continue to contact delinquent homeowners in
writing between the 35th and 45th day of delinquency.  However,
you may discontinue using the mandatory Borrower Information
Packet Cover Letter (Handbook 4330.2 , REV. 2, May 1995, Appendix
A-ASGN-1).
                                                            2
 
    You may design your own initial letter, but at a minimum the
following information must be included in the written notice:
 
     1.   Spanish warning at the top of the letter;
 
     2.   A toll free number for homeowners to use to contact the
          lender to discuss their delinquent account;
 
     3.   A TDD number for homeowners to use to contact the lender;
 
     4.   Copy of HUD-PA-426, "HOW TO AVOID FORECLOSURE" (May 1997) brochure;
 
     5.   Total number of payments due plus any late charges and
          dates of payments due (i.e., June and July).  Date
          payments must be received by lender;
 
     6.   The toll free number for Housing Counseling Agencies
          (1-800-569-4287);
 
     7.   The toll free TDD number for Housing Counseling
          Agencies (1-800-877-8339);
 
     8.   A request for financial information (Form HUD-92068F, optional).
 
    Attached you will find a copy of the new brochure.  If
you have any further questions, please call the Single Family Servicing
Division at 202-708-1672, or contact us via the Internet at
hsg-lossmit@hud.gov.
 
Sincerely yours,
 

Nicolas P. Retsinas
Assistant Secretary for Housing-
Federal Housing Commissioner
 
Attachment
Click Here to Download PDF File