How does a qualified lender decide which notice to send?
It is more appropriate to use the nonforeclosure notice in situations where there is a reasonable expectation that the distress to the loan can be cured and that foreclosure can be avoided. The 45-day notice is best used when the situation causing the distress is sufficiently severe to create a high probability of foreclosure action.
Related Questions
- If a parent is denied a Parent PLUS loan because he has a adverse credit history, must the lender send an adverse action notice to that parent?
- May a qualified lender modify a distressed loan notice when it is being sent to a borrower(s) who has filed bankruptcy?
- Which distressed loan notice is sent before a qualified lender may act to protect collateral it fears is at risk?
