FHA Single Family Housing Policy Handbook 4000.1, Part III

FHA Single Family Housing Policy Handbook 4000.1, Part III — f. Imminent Default (10/01/2025)

Effective 2025-10-01 · publisher's stamp for this provision

f. Imminent Default (10/01/2025) i. Definition A Borrower facing Imminent Default is defined as a Borrower who is current or less than 30 Days past due on their Mortgage Payment and is experiencing a significant, documented reduction in income or some other hardship that will prevent them from making the next required Mortgage Payment during the month that it is due. ii. Standard The Mortgagee must obtain documentation necessary to verify that the Borrower is experiencing a significant reduction in income or some other hardship that will prevent them from making the next required Mortgage Payment during the month that it is due. The Mortgagee must obtain, electronically or in hard copy, the following certification from the Borrower: I am/We are experiencing a reduction in income or the following hardship(s) that will prevent me/us from making the next required Mortgage Payment due on ____________ during the month that it is due: _____________________________________________________________________ ____________________________________________________________________. I/We, the undersigned, certify under penalty of perjury that the information provided above is true and correct. WARNING: Anyone who knowingly submits a false claim or makes a false statement is subject to criminal and/or civil penalties, including confinement for up to five years, fines, and civil and administrative penalties. (18 U.S.C. §§ 287, 1001, 1010, 1012, 1014; 31 U.S.C. §§ 3729, 3802). iii. Required Documentation The Mortgagee must document the basis for the determination that the Borrower’s financial condition will result in a Default and the Borrower’s certification in its Servicing File.

Source: FHA Single Family Housing Policy Handbook 4000.1 (issued 2025-11-26) · source URL · snapshot 8c03836f77f317e1