Federal Baseline Protections
Under CFPB Regulation X, servicers cannot file foreclosure until the borrower is more than 120 days delinquent. If you submit a complete loss mitigation application before foreclosure, the servicer must evaluate it first.
State Pre-Foreclosure Notice
Most states require notice of default giving you 30-90 days to cure. California requires 3 months. New York requires 90 days. Illinois requires 30 days.
Calculating the Cure Amount
Includes: past-due payments, late fees, attorney fees, and escrow shortfall. It does NOT include the full remaining balance. Your servicer must provide an accurate amount upon request.
Loss Mitigation Alternatives
If you cannot afford the full cure: loan modification, forbearance, repayment plan, or partial claim (FHA loans). Apply before the foreclosure sale.
Frequently Asked Questions
What if the servicer won't accept my payment?
Servicers are legally required to accept cure payments. If they refuse, send certified funds by certified mail. File a complaint with the CFPB and state attorney general.
Can I cure a mortgage in bankruptcy?
Chapter 13 allows you to cure mortgage arrears over 3-5 years. The automatic stay stops foreclosure immediately.
How many times can I cure?
Most state laws do not limit cure frequency. However, serial defaults may attract scrutiny and lenders may seek court orders to proceed without further notice.
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