From the Thordsen Law Offices:
FHA MORTGAGE LOAN SERVICERS THAT MAY BE FORECLOSING ON CONSUMER LOAN HOMES PAY CLOSE ATTENTION TO ML 2015-20
At least 60 calendar days, but not more than 90 calendar days before the mortgagee reasonably expects to acquire title to a property securing an FHA-insured mortgage, the mortgagee shall notify the mortgagor and each head of household occupying a unit of the property about the potential of the mortgagee conveying the property to HUD following foreclosure.
THE NOTICE(S) SHALL:
- provide a summary of the conditions under which continued occupancy may be permissible;
- provide other information as specified in 24 CFR Â§ 203.675(b); and
- be sent via U.S. Postal Service or another mail service via certified mail or some other service that insures receipt of the NOPA by occupants
Mortgagees must make any additional changes to the revised sample Notice of Pending Acquisition (NOPA) that are required to be compliant with federal, state, or local laws. (ml2015-20)
Just by way of example and not by all means exclusive: If the property is in California and at the time the NOD is recorded there is a tenant in place with a lease (which may be from month to month up to 3 years as a rule) the tenant cannot be evicted and the notices must be amended accordingly. So if you are servicing an FHA loan, where foreclosure may reasonably occur I suggest you contact us Before You start the foreclosure process to know your limits if the property is in California. We have seen a few foreclosures where the landlord lost because of not dotting the “i’s” and crossing the “t’s”.
Herman Thordsen, Esq.
THORDSEN LAW OFFICES
151 Kalmus Drive, Suite B-250
Costa Mesa, CA 92626
714.662.4990 • 310.277.4254 888.667.8524