We are a small servicer.

Please see regulation pasted below.
Question: Does this mean that if the servicer is able to foreclose on a HELOC, that it can also foreclose on the 1st or 2nd lien that is the primary residence, federal related mortgage loan?

i.e. does the Servicer not have to wait for the 120-days delinquency to begin foreclosure proceedings IF there is a 1st or 2nd lien HELOC being placed into foreclosure?

Thank you.

Here is the regulation I forgot to paste in the aforementioned post:

f) Prohibition on foreclosure referral. (1) Pre-foreclosure review period. A servicer shall not make the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process unless:
(i) A borrower's mortgage loan obligation is more than 120 days delinquent;
(ii) The foreclosure is based on a borrower's violation of a due-on-sale clause; or
(iii) The servicer is joining the foreclosure action of a superior or subordinate lienholder.

1024.41(f)

If foreclosure is being initiated on another loan, you are allowed to join in the foreclosure regardless of the status of your loan.

Even if it's the same servicer, correct?

Yes.

Thank you so much, Randy. I appreciate it.