Counseling Notice Is Required Before Foreclosure

09 Aug Counseling Notice Is Required Before Foreclosure

Virtually every mortgage lender in the country must give a list of HUD-approved counselors within 45 days after a payment is missed. The only exception is for those mortgages assisted by the Farmers Home Administration.

The requirement is found in the Homeownership Counseling Act. Here are the pertinent pages from the FDIC Compliance Handbook.

There is no stated consequence for a lender’s failure to provide the required list. However, at least one Florida court denied a right to foreclose for this reason.

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L. Jed Berliner practices exclusively in consumer bankruptcy, foreclosure defense, and related consumer protection litigation such as credit card defenses and suing debt collectors. He established his Springfield, MA practice in 1988. Attorney Berliner is a regular and active contributor to the Bankruptcy Law Network, the Bankruptcy Roundtable, and the National Association of Consumer Bankruptcy Attorneys, three specialized consumer bankruptcy forums on the Internet, and is an informal mentor to regional practitioners. He is recognized by his peers as an expert in consumer bankruptcy issues. He thoroughly enjoys being rated "excellent" in his client surveys.

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