Foreclosure Requirements for FHA Mortgage Loans

Mortgage loans insured by the Federal Housing Authority (“FHA”) include specific requirements for foreclosure that homeowners need to be aware of when facing a possible foreclosure.

FHA mortgage loans are insured by the federal government and are aimed at helping low-income Americans buy a home.  Because the federal government backs these loans, lenders have a greater incentive to lend to those who might not otherwise qualify for a mortgage loan.

FHA mortgages are different than a standard residential mortgage, and include specific requirements for foreclosure.  One of the most important requirements is the “face to face” meeting prior to foreclosure.  This requirement, which comes from federal government regulations, requires lenders to have a face-to-face meeting after the borrower defaults on the mortgage loan, prior to the lender foreclosing the property. Not surprisingly, few lenders comply with these requirement.

Here in Massachusetts, a foreclosing entity needs to strictly comply with the terms of a mortgage prior to foreclosure.  Several courts have found that these FHA mortgage requirements—specifically the “face to face” meeting—is a term of the mortgage and as such, must be strictly complied by the lender in order for a foreclosure to be valid.  As such, a borrower with a FHA mortgage loan has a strong defense against foreclosure if their lender has not complied with this requirement.

If you have a FHA loan and are facing foreclosure, seek the help of an experienced foreclosure defense attorney right away.