If you have a FHA /HUD mortgage that you are falling behind on, you will want to know about the Door-Knock Defense and the special foreclosure and pre-foreclosure requirements that FHA/HUD lenders must follow in order to legally foreclose on a home. These pre-foreclosure review and compliance guidelines apply to FHA homeowners in Ohio and elsewhere in the country. If the lender does not follow these required steps, you may be able to have the foreclosure dismissed in court. The requirements to proceed with a foreclosure on an FHA mortgage insured by HUD include:
In order for an FHA/HUD lender to proceed with a foreclosure against a homeowner, the mortgage must be in default as defined by the original terms of your loan agreement. You will want to have a foreclosure defense attorney look at your original mortgage documents to determine the terms of default as defined by your mortgage.
By the end of the second month of delinquency in paying your mortgage, your lender must mail you a specific notice entitled "How to Avoid Foreclosure." This notice must be mailed by the end of the second month of mortgage delinquency. If this is not sent to you or is not sent by the deadline, your foreclosure case may be dismissed in court.
Another requirement (aka the Door-Knock Requirement) set by HUD is that prior to the third missed monthly mortgage payment, the lender must make a reasonable effort to meet face-to-face with the borrower. The purpose of this meeting is to work out a way to avoid foreclosure. There are exemptions to this requirement which include:
- The home is not occupied by the homeowner
- The lender /servicer does not have an office within 200 miles of the property.
- You, the homeowner, have expressed that you are not willing to work with the lender.
- The delinquent payments are re-paid through a payment agreement.
- The lender's reasonable effort to make contact is unsuccessful
A Foreclosure Defense Attorney Can Stop a Foreclosure on Your FHA Mortgage: The Door Knock Defense.
In addition to the above requirements, the lender must wait until at least three monthly payments are due and unpaid in order to begin the foreclosure process. If your FHA/HUD lender begins the foreclosure earlier, you may be able to have the foreclosure dismissed in court.
Foreclosure defense is a complex area of the law. If you have an FHA/HUD mortgage and you believe that your lender has not followed the federally required steps for foreclosure, you should contact our Columbus, Ohio law office immediately to meet with an experienced foreclosure defense attorney.
Please call 614-556-4522 to reach our Columbus, Ohio law office. We are located at 2130 Arlington Ave, Columbus, Ohio 43221. Explore our website for more information and faqs about foreclosure defense,Chapter 7 bankruptcy, Chapter 13 bankruptcy, and debt settlement.