Mentioning foreclosure action in a letter prior to the time that the bank is prepared to initiate an action, well that is going to be a State law issue. Here is the Regulation, but you need to read the commentary carefully and sit down with you legal counsel that assists in foreclosure actions regarding what notices are required in your State under the type of foreclosure you will be using.
1024.41(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.
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