III.A.2.g. Imminent Default (03/14/16)
- Kacey Olson
© HUD Single Family Housing Policy Handbook 4000.1
Included in this section are:
i. Definitions
ii. Standard
ii. Standard
i. Definition
A Borrower facing Imminent Default is defined as a Borrower who is current or less than 30 Days past due on their Mortgage Payment and is experiencing a significant, documented reduction in income or some other hardship that will prevent them from making the next required Mortgage Payment during the month that it is due.
ii. Standard
The Mortgagee must obtain documentation necessary to verify that the Borrower is experiencing a significant reduction in income or some other hardship that will prevent them from making the next required Mortgage Payment during the month that it is due.
iii. Required Documentation
The Mortgagee must include in its servicing file documentation of the basis for the determination that the Borrower’s financial condition will result in a Default.