source:
  type: guide
  id: hud-4000-1-iii-g-early-default-intervention
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — g. Early
    Default Intervention (10/01/2025)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part III — g. Early
    Default Intervention (10/01/2025).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iii-g-early-default-intervention-full
  canonical_id: hud-4000-1-iii-g-early-default-intervention-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part III — g. Early Default
    Intervention (10/01/2025)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — g. Early
      Default Intervention (10/01/2025)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'g. Early Default Intervention (10/01/2025) The Mortgagee must
      determine the Borrower’s ability to make monthly Mortgage Payments and take
      loss mitigation action or commence foreclosure, if loss mitigation is not feasible,
      within six months of the date of Default, or within such additional time approved
      by HUD via Extensions and Variances Automated Requests System (EVARS). The Mortgagee
      must notify each Borrower, co-signer, and any other party requiring notice by
      state law that the Mortgage is in Default. i. Delinquent Mortgage Identification
      The Mortgagee must identify Delinquent Mortgages and their payment status to
      ensure appropriate servicing and collection actions are completed on a daily
      basis. The Mortgagee must report the Delinquency/Default Status Codes that accurately
      reflect the severity of Default and Mortgagee action taken in SFDMS. ii. Collection
      Communication Timeline (A) Definition The Collection Communication Timeline
      sets forth the servicing actions that Mortgagees must take when contacting a
      Borrower with a Delinquent Mortgage. (B) Standard The Mortgagee must perform
      in a timely manner the servicing actions set forth in the following Collection
      Communication Timeline. Day Mortgagee Action 1 Payment due date; no action required
      until the Mortgage becomes Delinquent. 10 The Mortgagee must begin attempts
      to contact Borrowers with a Delinquent Mortgage at risk of Early Payment Default
      or Re-Default in accordance with Specialized Collection Techniques for Early
      Payment Defaults and Re- Defaults. 25 The Mortgagee must begin attempts to contact
      Borrowers with a Delinquent Mortgage in accordance with Contact Efforts for
      Delinquent Borrowers. 31 The Mortgagee must report the delinquency to HUD via
      SFDMS. 32– 45 The Mortgagee must send the following: • Notice of Homeownership
      Counseling Availability; and • Servicemembers Civil Relief Act (SCRA) Notice
      Disclosure (form HUD- 92070). 32– 60 The Mortgagee must send the following:
      • Delinquency Notice Cover Letter; and • Save Your Home: Tips to Avoid Foreclosure
      (form HUD-2008-5-FHA). III. SERVICING AND LOSS MITIGATION A. Title II Insured
      Housing Programs Forward Mortgages 2. Default Servicing Handbook 4000.1 1191
      Last Revised: 11/26/2025 Day Mortgagee Action 45 The Mortgagee should begin
      analysis to identify appropriate loss mitigation options, if any. If unable
      to reach the Borrower(s), the Mortgagee must perform an Occupancy Inspection.
      61 The Mortgagee must conduct or make a reasonable effort to arrange the Interview
      with the Borrower no later than this date. 90 The Mortgagee must report the
      appropriate Default Reason Code for the Default in SFDMS. The Mortgagee must
      have evaluated all loss mitigation options to determine whether any are appropriate.
      The Mortgagee must reevaluate the Borrower for loss mitigation each month thereafter.
      (C) Required Documentation The Mortgagee must document in their Servicing File
      all communication efforts to reach the Borrower early in their delinquency.
      iii. Communication Methods (A) Selecting Best Method of Communication [Text
      was deleted in this section.] The Mortgagee must use the method or methods of
      communication most likely to receive a response from each Borrower and consider
      the Borrower’s expressed preference for using certain methods of communication.
      The Mortgagee must effectively communicate with persons with hearing, visual,
      and other communications-related disabilities, including the use of auxiliary
      aids and services in accessible formats. (B) Methods of Communication The Mortgagee
      may use mail, certified mail, in person, any acceptable method of electronic
      communication, or telephone contact attempts to establish contact with the Borrower.
      Acceptable methods of electronic communication that Mortgagees may use to contact
      the Borrower include: • Voice over Internet Protocol (VoIP) or other technology
      that allows voice calls; • interactive virtual communication methods; • email;
      • text messages; III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing
      Programs Forward Mortgages 2. Default Servicing Handbook 4000.1 1192 Last Revised:
      11/26/2025 • secure web portals (such as online account management tools accessible
      by Borrowers); and • other reliable communication methods through which the
      Mortgagee has been able to effectively communicate with Borrowers in the past.
      The Mortgagee must ensure that their electronic signature technology complies
      with all requirements of the Electronic Signatures in Global and National Commerce
      (ESIGN) Act, 15 U.S.C. § 7001 et seq. The Mortgagee must include within the
      electronic communication the Mortgagee’s email address, telephone number, and/or
      website address. iv. Specialized Collection Techniques for Early Payment Defaults
      and Re-Defaults (A) Definitions Early Payment Defaults refer to all Mortgages
      that become 60 Days Delinquent within the first six payments. A Re-Default is
      a mortgage Default occurring within six months after reinstatement or the successful
      use of a Permanent Home Retention Option. (B) Standard For Borrowers at risk
      of Early Payment Default or Re-Default, the Mortgagee must: • commence contact
      by the 10th Day of delinquency to remind Borrowers of Mortgage Payment time
      frames; • make a minimum of two attempts per week to contact the Borrower after
      the 10th Day of delinquency and must vary the times and days of the week of
      contact attempts to maximize the likelihood of contacting the Borrower, until:
      o contact is established; or o the Mortgagee determines that the contact information
      is inaccurate or no longer in service; and • make reasonable efforts to obtain
      an alternate contact method and/or follow up with the Borrower using other methods
      of communication until contact is established. If the Mortgagee is unable to
      establish contact, the Mortgagee must determine through an Occupancy Inspection
      if the Property is vacant or abandoned by the 45th Day of delinquency. (C) Required
      Documentation The Mortgagee must document in their Servicing File all specialized
      collection efforts to reach the Borrowers at risk of Early Payment Default or
      Re-Default. III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs
      Forward Mortgages 2. Default Servicing Handbook 4000.1 1193 Last Revised: 11/26/2025
      v. Contact Efforts for Delinquent Borrowers (A) Standard For Borrowers with
      a Delinquent Mortgage, the Mortgagee must: • commence contact by the 25th Day
      of delinquency; • make a minimum of two attempts per week and must vary the
      times and days of the week of contact attempts to maximize the likelihood of
      contacting the Borrower until: o contact is established; or o the Mortgagee
      determines that the contact information is inaccurate or no longer in service;
      and • make reasonable efforts to obtain an alternate contact method and/or follow
      up with the Borrower using other methods of communication until contact is established.
      Promptly after establishing contact, the Mortgagee must determine whether the
      Borrower is occupying the Property, ascertain the reason for the delinquency,
      and inform the Borrower about the availability of Loss Mitigation Options. If
      the Mortgagee is unable to establish contact, the Mortgagee must determine through
      an Occupancy Inspection if the Property is vacant or abandoned by the 45th Day
      of delinquency. (B) Required Documentation The Mortgagee must document in their
      Servicing File all communication efforts to reach a Borrower with a Delinquent
      Mortgage. vi. Assigned Loss Mitigation Personnel The Mortgagee must designate
      personnel to respond to the Borrower’s inquiries and to assist them with Loss
      Mitigation Options no later than the 45th Day of delinquency. The Mortgagee
      must provide the contact information of their loss mitigation or customer assistance
      hotline, offering direct phone access to assigned loss mitigation personnel,
      in the Delinquency Notice Cover Letter. vii. Required Notices to Borrower by
      45th Day of Delinquency (A) Standard Beginning on the 32nd Day, but no later
      than the 45th Day from the date payment was due, the Mortgagee must send a:
      • Notice of Homeownership Counseling Availability; and • Servicemembers Civil
      Relief Act (SCRA) Notice Disclosure (form HUD- 92070). III. SERVICING AND LOSS
      MITIGATION A. Title II Insured Housing Programs Forward Mortgages 2. Default
      Servicing Handbook 4000.1 1194 Last Revised: 11/26/2025 (1) Notice of Homeownership
      Counseling Availability [Text was deleted in this section.] The Mortgagee must
      provide a Borrower with a Delinquent Mortgage with a notice describing the availability
      of housing counseling offered by HUD- approved housing counseling agencies.
      The notification must: • inform the Borrower with a Delinquent Mortgage of the
      availability of housing counseling services provided by HUD-approved housing
      counseling agencies; • provide instructions for locating a HUD-approved housing
      counseling agency in the Borrower’s area and includes the HUD Housing Counseling
      Agency Locator toll-free telephone number (800) 569-4287, through which Borrowers
      can obtain a list of housing counseling agencies; • provide instructions that
      HUD is prepared to accept calls from persons who are deaf or hard of hearing,
      as well as individuals with speech and communication disabilities. The Federal
      Communications Commission (FCC) has information on how to make an accessible
      phone call; and • describe housing counseling and the potential benefits of
      engaging in housing counseling. (2) Servicemembers Civil Relief Act Notice Disclosure
      The Mortgagee must send form HUD-92070 for the required notice of servicemember
      rights to all Borrowers in Default on a residential Mortgage and must include
      the toll-free Military OneSource number to call if servicemembers or their dependents
      require further assistance. (B) Required Documentation The Mortgagee must document
      in their Servicing File the dates on which it sent the Notice of Homeownership
      Counseling Availability and the SCRA Disclosure. The Mortgagee must be able
      to provide to HUD, upon request, the language in its Notice of Homeownership
      Counseling Availability. viii. Required Notices to Borrower by 60th Day of Delinquency
      (A) Standard Beginning on the 32nd Day but no later than the 60th Day from the
      date the Mortgage Payment was due, the Mortgagee must send the: • Delinquency
      Notice Cover Letter; and • Save Your Home: Tips to Avoid Foreclosure (form HUD-2008-5-FHA).
      (1) Delinquency Notice Cover Letter The Mortgagee must send the Save Your Home:
      Tips to Avoid Foreclosure with a Delinquency Notice cover letter that includes:
      III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward
      Mortgages 2. Default Servicing Handbook 4000.1 1195 Last Revised: 11/26/2025
      • the following information related to the Mortgage: o number of late payments;
      o total amount of any Late Charges incurred; o the month of each late payment;
      and o the original due date of each late payment; • if applicable, a list of
      information or documentation the Mortgagee needs to complete the loss mitigation
      analysis; and • contact information for the Mortgagee’s assigned loss mitigation
      personnel to include, at a minimum, a toll-free telephone number and information
      on how to locate a HUD-approved counseling agency online or by calling HUD’s
      interactive voice system at (800) 569-4287, and that HUD is prepared to accept
      calls from persons who are deaf or hard of hearing, as well as individuals with
      speech and communication disabilities. The Federal Communications Commission
      (FCC) has information on how to make an accessible phone call. (2) Save Your
      Home: Tips to Avoid Foreclosure Save Your Home: Tips to Avoid Foreclosure (form
      HUD-2008-5-FHA) is available in English, Spanish, Chinese, and Vietnamese. Mortgagees
      may reproduce electronic versions of the form at their own expense. The Mortgagee
      may not change the contents of the form in any way. (3) Resending Notices The
      Mortgagee must resend the cover letter and accompanying Save Your Home: Tips
      to Avoid Foreclosure (form HUD-2008-5-FHA) at 45 Days Delinquent unless a new
      delinquency occurs less than six months after a prior notice and brochure was
      mailed. (4) Exception for Borrowers in Bankruptcy The Mortgagee is not required
      to send the cover letter and Save Your Home: Tips to Avoid Foreclosure if the
      Borrower has filed bankruptcy before becoming 45 Days Delinquent, and, in the
      opinion of the Mortgagee’s legal counsel, providing the cover letter and brochure
      would be a violation of the automatic stay. The Mortgagee must send the cover
      letter and Save Your Home: Tips to Avoid Foreclosure once the Mortgagee has
      received notification that the automatic stay is lifted. (B) Required Documentation
      The Mortgagee must document in their Servicing File the dates on which it sent
      the Delinquency Notice cover letter and Save Your Home: Tips to Avoid Foreclosure.
      III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward
      Mortgages 2. Default Servicing Handbook 4000.1 1196 Last Revised: 11/26/2025
      The Mortgagee must document a bankruptcy-related exception in the Servicing
      File. ix. Occupancy Inspections (A) Definitions An Occupancy Inspection is a
      visual inspection of a mortgaged Property by the Mortgagee to determine if the
      mortgaged Property has become vacant or abandoned and to confirm the identity
      of any occupants. An Occupancy Follow-Up is an attempt to communicate with the
      Borrower via letter, telephone, or other method of communication, other than
      on-site inspection, to determine occupancy when the Mortgage remains in Default
      after the initial inspection and the Mortgagee has not determined the Borrower’s
      occupancy status. (B) Standard If the Mortgagee is unable to reach the Borrower(s)
      by the 45th Day of delinquency, the Mortgagee must perform a visual inspection
      of the mortgaged Property to determine occupancy status. (1) Initial Occupancy
      Inspection The Mortgagee must perform the initial Occupancy Inspection no later
      than the 60th Day of delinquency when: • the Mortgage is in Default; • a payment
      has not been received within 45 Days of the due date; and • efforts to reach
      the Borrower or occupant have been unsuccessful. (2) Follow-Up Inspections If
      the Mortgagee is unable to determine the Borrower’s occupancy status through
      the initial Occupancy Inspection, the Mortgagee must perform an Occupancy Follow-Up.
      If necessary, the Mortgagee must continue Occupancy Inspections every 25-35
      Days from the last inspection until the occupancy status is determined. (3)
      Occupancy Inspections during Bankruptcy When payments are not submitted as scheduled
      by a Borrower in bankruptcy, the Mortgagee must contact either the bankruptcy
      trustee or the Borrower''s bankruptcy attorney for information concerning the
      status of the Borrower, to determine if an Occupancy Inspection is needed. The
      Mortgagee must continue to perform exterior-only visual inspections until the
      Default is cured, the Property is disposed of, or the bankruptcy court has granted
      III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward
      Mortgages 2. Default Servicing Handbook 4000.1 1197 Last Revised: 11/26/2025
      approval for the Mortgagee to contact the Borrower or to take any required Property
      Preservation and Protection (P&P) actions. If the Mortgagee determines that
      the Property is vacant or abandoned during the period in which the Mortgagee
      is prohibited from contacting the Borrower, the Mortgagee must note the following
      in the Servicing File: • the date it made its determination; and • that contact
      with the attorney or trustee has been made. (4) Determination that the Property
      is Vacant or Abandoned If the Mortgagee determines through an Occupancy Inspection
      that the Property is vacant or abandoned, the Mortgagee must: • send a letter,
      via a method providing delivery confirmation, to Borrowers at the property address
      informing them of the Mortgagee’s determination that the Property is vacant
      or abandoned. This letter must include the Mortgagee’s contact information;
      • commence Vacant Property Inspections; and • take appropriate Property P&P
      actions to secure and maintain the Property. If the Mortgagee fails to inspect
      the Property within the required time period, or fails to discover the vacancy,
      the vacancy date will be the last date on which the Mortgagee should have performed
      the inspection. If the Property becomes vacant prior to an inspection and the
      Mortgagee has knowledge of such vacancy, then the date the Property became vacant
      is the vacancy date. (C) Required Documentation The Mortgagee must retain in
      the Servicing File: • the dates and methods of Occupancy Follow-Up and vacancy
      letters; • evidence of payment to the inspector; • copies of all completed inspection
      reports; and • any accompanying follow-up documentation for Occupancy Inspections.
      For all Occupancy Inspections, the Mortgagee must retain in the inspection report:
      • date of the inspection; • identity of the individual inspector and the inspection
      company; • the general condition of the Property; • any actions taken to preserve
      and protect the Property; • photographs with a date and time stamp printed on
      each and labeled accordingly with a description of the contents of each photograph;
      • occupancy status of the Property; and • answers to the following questions,
      where applicable: o Is the house locked? o Is the grass mowed and/or are shrubs
      trimmed? III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs
      Forward Mortgages 2. Default Servicing Handbook 4000.1 1198 Last Revised: 11/26/2025
      o Is there any apparent damage? o Is any exterior glass broken? o Are there
      any apparent roof leaks? o Does the house contain Personal Property and/or debris?
      o Are any doors or windows boarded? o Is the house winterized? o Are there any
      repairs necessary to adequately preserve and protect the Property? x. Interview
      (A) Standard The Mortgagee must have an interview with the Borrower or make
      a reasonable effort to arrange an interview no later than the 61st Day of delinquency,
      or no later than 30 days after default on a Repayment Plan, unless exempt. The
      interview should provide a delinquent Borrower the opportunity to meet with
      the Mortgagee to discuss available loss mitigation options, and, when possible,
      to be evaluated for these options. The Mortgagee may conduct the interview face-to-face
      or using alternative communication methods, such as phone interviews, video
      calling services, or other conferencing technology. (1) Meeting Not Required
      The Mortgagee is not required to conduct an interview if: • the Borrower has
      clearly indicated that they will not cooperate with an interview; • the Borrower’s
      payment is current due to an agreed-upon Repayment Plan, Forbearance Plan, or
      Trial Payment Plan (TPP); • a reasonable effort to arrange a meeting with the
      Borrower is unsuccessful; or • in the opinion of the Mortgagee’s legal counsel,
      it would be a violation of bankruptcy law. (2) Reasonable Effort in Arranging
      an Interview The Mortgagee must make two attempts to contact the Borrower to
      arrange the interview and include the following information: • the availability
      of interviews; and • how to schedule the interview. The Mortgagee may use mailings,
      telephone calls, in-person outreach, or any electronic or other communication
      method through which the Mortgagee is able to communicate with Borrowers. The
      Mortgagee may use a third-party vendor to III. SERVICING AND LOSS MITIGATION
      A. Title II Insured Housing Programs Forward Mortgages 2. Default Servicing
      Handbook 4000.1 1199 Last Revised: 11/26/2025 establish this contact with the
      Borrower and to schedule the Borrower’s interview with a Mortgagee representative.
      The Mortgagee may count compliance with any of the following as one or more
      of the required attempts to arrange the interview when information about the
      interview is also provided: • Contact Efforts for Delinquent Borrowers; • Delinquency
      Notice Cover Letter; • the Consumer Financial Protection Bureau’s (CFPB) early
      intervention requirements for Live contact in 12 CFR § 1024.39(a); or • the
      CFPB’s early intervention requirements for Written notice in 12 CFR § 1024.39(b).
      A second attempt is not required if the Mortgagee has established contact with
      the Borrower on the first attempt. (3) Mortgagee Representative Authority The
      Mortgagee must ensure that the employee representing the Mortgagee at interviews
      has the authority to propose and accept reasonable Repayment Plans. Where a
      Mortgagee’s representative exceeds their authority by agreeing to a Repayment
      Plan at the time of the interview, the Mortgagee must still accept the Repayment
      Plan agreed to by its representative, regardless of whether the representative
      overstepped their authority. (B) Required Documentation The Mortgagee must document
      in the Servicing File: • the reason the interview is not required, if exempt;
      • the dates and methods of its attempts to arrange an interview; and • the date
      of its interview with the Borrower. xi. Vacant Property Inspections (A) Definitions
      A First-Time Vacant (FTV) Property Inspection is the first inspection performed
      by the Mortgagee to ascertain the condition of a vacant or abandoned Property.
      A Follow-up Vacant Property Inspection is an inspection by the Mortgagee of
      a vacant or abandoned Property that occurs every 25-35 Days after the FTV Property
      Inspection until the mortgage Default is cured or until conveyance of the Property
      to HUD. III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs
      Forward Mortgages 2. Default Servicing Handbook 4000.1 1200 Last Revised: 11/26/2025
      (B) Standard The Mortgagee must take reasonable actions to protect the value
      of the security, including performing the following required inspections for
      vacant or abandoned Properties. The Mortgagee is liable for any damage resulting
      from the Mortgagee’s failure to preserve and protect the Property unless the
      Mortgagee can prove that the damage occurred prior to the date the Property
      became vacant. (1) First-Time Vacant Property Inspection The Mortgagee must
      perform the FTV Property Inspection as soon as reasonably practicable, but no
      more than 15 business days following the determination that the Property is
      vacant and/or abandoned. The Mortgagee must: • secure the Property, if possible;
      • upload documentation and photographs showing any damage resulting from the
      Borrower that is identified using the FTV Property Inspection into P260; • pressure-test
      all water supply and upload photographs of the results of the test into P260;
      • address all imminent and urgent safety hazards and determine what repairs
      are required to prevent damage to the Property; and • photograph the primary
      exterior facades and interior areas of the primary and secondary Structures,
      including any damage found. (2) Follow-up Vacant Property Inspections The Mortgagee
      must perform Follow-up Vacant Property Inspections every 25-35 Days after the
      FTV Property Inspection until the mortgage Default is cured or until conveyance
      of the Property to HUD. In areas of high vandalism or where local ordinances
      require more frequent Follow-up Vacant Property Inspections, Mortgagees may
      perform Follow-up Vacant Property Inspections more frequently than HUD’s 25-35
      Day requirement and request reimbursement for these inspection costs. At each
      inspection, the Mortgagee must: • photograph the overall condition of the interior
      and exterior of the primary and all secondary Structures; • monitor the security
      and maintenance of the Property; • assess and manage damage that requires repair,
      replacement, or removal; and • address and resolve all emergency repairs. III.
      SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages
      2. Default Servicing Handbook 4000.1 1201 Last Revised: 11/26/2025 (C) Required
      Documentation For all Vacancy Inspections, the Mortgagee must retain in the
      Servicing File: • evidence of payment to the inspector; • any police reports
      and/or letters from a local law enforcement agency evidencing the need for additional
      protective measures; and • copies of all completed inspection reports that must
      include: o date of the inspection; o identity of the individual inspector and
      the inspection company; o the general condition of the Property; o any actions
      taken to protect and preserve the Property; o photographs with a date and time
      stamp printed on each and labeled accordingly with a description of the contents
      of each photograph; o occupancy status of the Property; and o answers to the
      following questions, where applicable: ▪ Is the house locked? ▪ Is the grass
      mowed and/or are shrubs trimmed? ▪ Is there any apparent damage? ▪ Is any exterior
      glass broken? ▪ Are there any apparent roof leaks? ▪ Does the house contain
      Personal Property and/or debris? ▪ Are any doors or windows boarded? ▪ Is the
      house winterized? ▪ Are there any repairs necessary to adequately preserve and
      protect the Property? The Mortgagee must document all Property P&P activities
      performed on vacant Properties. xii. Use of Early Default Intervention Tools
      As part of early default intervention, the Mortgagee must review the Borrower
      for the Early Default Intervention Tools.'
  judgment: false
