4.06 BORROWER CONTACTS (38 C.F.R. 36.4350h) (02/01/18)

© VA Servicers Handbook - M26-4

a. Once a borrower fails to make a mortgage payment (or payments) when due, servicers should contact the borrower in order to reach an agreement that will bring the loan current. VA expects servicers to continue efforts to contact the borrower to reach a plan that will cure the delinquency.

b. Contact with the borrower is critical. When contact is established with the borrower, servicers should evaluate the prospects for curing the delinquency and determine whether any home retention options are feasible. At a minimum, servicers must make a reasonable effort to establish the following:

1. The reason for the default and whether the reason constitutes a temporary or permanent condition.

2. The borrower’s present income and employment.

3. The current monthly expenses of the borrower, including all household and debt obligations.

4. The borrower’s current mailing address and telephone number.

5. A realistic and mutually satisfactory arrangement for curing the default, if applicable.

6. The borrower’s intent with regards to the property.