Homeownership Counseling Notice on Repeaters
by David Dickinson and Andy Zavoina, BOL Gurus Guru BIOS
Question: We have a borrower that is frequently past due 30 days or more on her conventional mortgage. In all of the Homeownership Counseling material we've read, we can't seem to determine if the counseling letter is necessary every time the loan is 30 days delinquent or not. Is is like the Right to Cure, where it only needs to be sent once, or should it go out every time?
Answer by David Dickinson: My understanding of the HOC rules is that before EVERY time they become 45 days past due, you must provide the HOC notice. Unfortunate, isn't it?
Answer by Andy Zavoina: There are many opportunities to become delinquent in a 30 year mortgage and there could be long gaps between this happening. For this reason I could see the recurring requirement, especially in a law that was so on-again, off-again.
If you can incorporate the brief wording in your notices, you wouldn't worry about this again.
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