When a mortgagor is under a SFB Agreement and they are unable to make one of their scheduled payments, can a mortgagee give a verbal grace period to submit the payment?
Yes, the mortgagee may provide a verbal grace period for submission of that one payment. The mortgagee should also advise the mortgagor of the written schedule of submission of payments within the SFB Agreement and that if the mortgagor does not make the payment on the date that is verbally agreed to, the 60 consecutive days of failure will begin with the oldest unpaid payment. The mortgagee then should document their system. Question 6: Mortgagor qualified and has been performing under a SFB Agreement, but then the mortgagor experienced a demotion at their place of employment and can no longer continue making the established SFB Agreement payments. Upon renegotiation, it is determined mortgagor qualifies for a SFB Type II, with cure of the delinquency resulting by utilizing a Partial Claim. May the mortgagee file incentive claim for the Partial Claim? Answer: Yes. Mortgagee Letter 2002-17, Page 6, “Review and Re-negotiation,” second paragraph states, “Plans may be re-negotiated if the
