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a. Mortgages in Delinquency or Default (03/31/2022)
i. Definitions
A Mortgage is Delinquent any time a Mortgage Payment is due and not paid.
A Mortgage is in Default when the Borrower fails to make any payment or perform any other obligation under the Mortgage, and such failure continues for a period of 30 Days.
The date of Default is 30 Days after:
• the first uncorrected failure to perform any obligation under the Mortgage; or
• the first failure to make a monthly payment which subsequent payments by the Borrower are insufficient to cover when applied to the overdue monthly payments in the order in which they become due.
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III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages
2. Default Servicing
ii. Standard
The Mortgagee must ensure FHA-insured Mortgages in Delinquency or Default are serviced in accordance with FHA requirements and applicable laws.
For the purpose of determining the date of Default and timelines related to Default, HUD considers all months to have 30 Days.