Hello all.

I am aware of the HUD 92070 requirement (notification that outlines servicemember's rights.

Question:
When a loan will be going into foreclosure, is there any requirement that the demand/acceleration letter (or a letter informing the borrower the lender is commencing with foreclosure), include any statement regarding servicemember rights similar to the HUD 92070, or any information such as stating if the borrower is a servicemember they may be entitled to protections?

I cant find anything requiring this, which I assume means it is not required...or expected. However I would like to confirm.

Thanks.

There is nothing federally. I suppose you could include something to the extent of "while we have no indication you are protected by any law prohibiting foreclosure, if you feel you are please call us immediately..." as that could include a bankruptcy filing and SCRA. This should be done between counsel and the bank but it also depends on when the letter is sent and the circumstances.

Thanks Andy Z. I wasn't looking to include something, just wanted to make sure it was not required.

I'd check state law on this question. In some cases, the foreclosure legal ad might have to include an "If you are entitled ....SCRA" statement. In others, there could be something that needs to be added to correspondence.

Thanks John.

Do we need to be checking SCRA status of the borrower before sending out these types of notices?

Currently we check the status before a formal request to Mgmt is made to foreclose on the property(after all of these types of notices have been sent)....then again on the day of foreclosure....

Is this sufficient?

Let me clarify....I mean before a demand/acceleration letter....or a we have the right to foreclose type letter...

I would check before any demand/cure letter goes out and before the actual foreclosure. That is a sound process. There is no one size fits all set of requirements and this excludes state SCRA-like requirements. Your examiners may well be asking what your procedure is as well so having this reduced to writing is a good idea.

Thank you, Andy....that approach makes perfect sense to me...