Question

The client is afraid her servicer might begin foreclosure proceedings immediately and force her out of her home. Which information should the housing counselor provide?

A- As long as the client is working with a housing counselor, the servicer cannot file for foreclosure.
B- A mortgage servicer cannot make a first notice for foreclosure until a borrower is more than 120 days
delinquent.
C- If the client makes a partial payment, it will delay foreclosure.
D- The client is not yet in default.

Answer 1

The mortgage servicer cannot begin foreclosure proceedings immediately, and the client has some time before such proceedings can begin. Making a partial payment may delay foreclosure, but it does not prevent it entirely. It is important to verify whether the client is in default or not.

Step-by-step explanation:

The housing counselor should provide the client with the information that a mortgage servicer cannot make a first notice for foreclosure until a borrower is more than 120 days delinquent. This means that foreclosure proceedings cannot begin immediately and the client has some time to address their delinquency. It is important for the client to understand that making a partial payment will only delay the foreclosure process, but it does not prevent it entirely. Additionally, the counselor should verify whether the client is in default or not, as the client's claim of not being in default may affect the next steps that need to be taken.