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18.6 ACCELERATION (07/02/18)

18.6 ACCELERATION (07/02/18)

Owned by Kacey Olson (Unlicensed)
Nov 24, 2018

© RHS HB-1-3555 SFH Guaranteed Loan Program Technical Handbook

When a servicer determines that a borrower is unable or unwilling to meet loan obligations, and there is no reasonable prospect of resolving the delinquency through another method, the servicer should initiate liquidation proceedings by accelerating the loan and, if necessary, foreclose. A demand letter should be sent to the borrower within five days of when the borrower missed their third consecutive payment. The notice should include the following:

  • Reason the notice is being sent (e.g. default or abandonment);
  • The action required to cure the default;
  • A date established to cure the default.

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