- Who sends it
- Your mortgage servicer, the company you send your payments to
- What it starts
- Nothing legal yet. The 120-day count before a foreclosure can usually begin runs from your first missed payment
- Do this first
- Call the number on the letter and ask to apply for loss mitigation
What this letter is
Once you miss a payment, your servicer will start contacting you. Federal rules (Regulation X) require it to make, or try in good faith to make, live contact with you by the 36th day you are behind, and to send you a written notice by the 45th day. That written notice is often called the early intervention letter. The servicer must send it again after each later missed payment while you stay behind, but not more than once every 180 days.
The written notice must encourage you to contact the servicer, give the phone number of staff assigned to your loan and a mailing address, briefly describe examples of help options if any are available, explain how to apply, and list the CFPB or HUD housing counselor website and HUD's toll-free counselor number.
You may also get a plain late notice or a call before day 36. Your note sets any late charge and grace period, so check it if a fee looks wrong.
What it does and does not mean
- It does not mean a foreclosure has started. In most cases your servicer cannot make the first notice or filing for a foreclosure until you are more than 120 days behind.
- It does not mean you have to leave your home, and it is not an eviction.
- It does mean you are in default under your loan, and the clock is running. Days are counted from the date the first unpaid payment was due.
- By the 45th day, your servicer must assign staff who can tell you your options, what to send, where your application stands and when a foreclosure referral could happen.
The deadline that matters: day 120
Count 120 days from the due date of the first payment you missed. If your servicer receives a complete loss mitigation application before it makes the first foreclosure notice or filing, it generally cannot start the foreclosure until it has reviewed you, you have had a chance to accept or appeal, or you have turned down every offer. That is the strongest protection you have, so aim to get a complete application in well before day 120.
Some servicers are exempt from parts of these rules. Small servicers (5,000 or fewer loans that they or an affiliate own) do not have to send the early intervention letter, but they still have to wait until you are more than 120 days behind. Reverse mortgages are not covered by these rules at all. Use the deadline calculator to work out your dates.
What to do this week
- Open every letter and write down the date each one arrived.
- Call the number on the letter. Say: "I am having trouble paying and I want to apply for loss mitigation." Ask for the name and direct number of the staff assigned to your loan.
- Ask what documents a complete application needs, and send them as soon as you can. Keep copies and proof of how you sent them.
- Call a free HUD-approved housing counselor at (800) 569-4287. Counselors may not charge for help with mortgage delinquency.
- Find out who backs your loan. FHA, VA, USDA, Fannie Mae and Freddie Mac loans have their own options. See help by loan type. For a VA loan, VA assigns a loan technician once you are 61 days behind; call 877-827-3702 and choose option 6.
- Read what to do first and the options to avoid foreclosure, starting with a repayment plan or forbearance.
What these letters are called in different states
The early intervention letter is the same everywhere because it comes from federal rules. Some states add their own letters at this stage, often with a counseling hotline. Examples: the notice before foreclosure with the hotline number in Colorado, the pre-foreclosure notice and call about your options in Nevada, the pre-default notice and single point of contact in Utah, contact about your options at least 30 days before a Notice of Default in California, and late notices from your servicer in Montana and Wyoming.
Later state notices are covered on the breach letter and notice of intent to foreclose pages.
Scams that follow a late payment
Once you fall behind, companies may start calling and mailing you. Watch for:
- Anyone who asks for a fee before you have signed an agreement with your servicer. A company that is not your lawyer cannot charge for mortgage relief until then.
- Anyone who tells you to stop talking to your servicer, your housing counselor or your lawyer.
- Anyone who wants payment by wire, cashier's check or a payment app, or who asks you to sign over your deed.
- Anyone who says they are with the government or your lender without proof. Call the number on your own statement or letter to check.
Read how to spot a foreclosure rescue scam. You can report a scam at ReportFraud.ftc.gov or to the CFPB.
How much time do you have? It depends on your state.
See the foreclosure timeline, deadlines and free local help for the state where the home is.
Common questions
I only missed one payment. Should I apply for help now?
Yes, if you cannot catch up right away. Your federal protections depend on when your servicer receives a complete application. Applying early gives you the most time and the most options.
My servicer never sent an early intervention letter. Does that stop a foreclosure?
Not by itself. Small servicers and reverse mortgages are exempt, and special rules apply in bankruptcy. If your servicer should have sent one and did not, write down what happened and talk to a housing counselor or lawyer, or file a complaint with the CFPB.
Is the person who called me really from my servicer?
Check by calling the number printed on your own monthly statement, not a number the caller gives you. Never send a payment to anyone except your servicer.
Keep reading
- Breach letter (demand or notice of intent to accelerate)A breach letter says you are in default and gives you a date to catch up. If you do not, the lender can call the whole loan due and move toward foreclosure. Many standard mortgages and deeds of trust require at least 30 days to cure.
- Notice of defaultIn many states that foreclose without a court, a recorded notice of default is the official start of the foreclosure. It is not a sale and not an eviction. It starts a waiting period before a sale can be set, and you can usually still catch up or apply for help.
- Notice of intent to forecloseMany states make the lender send a warning letter before it can start a foreclosure. These letters often give you a set number of days, a cure amount and a list of free counselors. The deadline in the letter matters, so act on it now.
- Lis pendens (notice of pendency)A lis pendens is a public notice, filed in the land records, that a lawsuit or foreclosure affecting your home is pending. It does not mean the home is sold or that you must move. It usually means the court papers are coming or have already been served.
- Foreclosure summons and complaintA summons and complaint means the lender has sued to foreclose. You have a short, firm deadline to respond in writing, often 20 to 30 days from the day you were served. Missing it can let the lender win without your side being heard.
- Notice of trustee's saleA notice of sale sets the date, time and place your home will be auctioned. It is serious, but it is not the end. You may still be able to catch up, get a review, use mediation or file bankruptcy, and each of those has its own cutoff.
Sources
- 12 C.F.R. § 1024.39, early intervention (eCFR)
- 12 C.F.R. § 1024.40, continuity of contact (CFPB)
- 12 C.F.R. § 1024.31, definitions (eCFR)
- 12 C.F.R. § 1024.41, loss mitigation procedures (eCFR)
- 12 C.F.R. § 1024.30, scope and successors in interest (eCFR)
- HUD: Avoiding foreclosure
- CFPB: Find a housing counselor
- VA: Help to avoid foreclosure
- 12 C.F.R. § 1015.5, ban on advance fees for mortgage relief (eCFR)
- FTC: Mortgage relief scams