Federal Pre-Foreclosure Protections (Regulation X)

The 120-day rule

For a mortgage loan secured by the borrower’s principal residence, under 12 C.F.R. § 1024.41(f)(1) a servicer generally may not make the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process unless the borrower’s mortgage loan obligation is more than 120 days delinquent. The rule lists exceptions.

Complete loss mitigation applications

Section 1024.41(g) restricts a servicer from moving for a foreclosure judgment or order of sale, or conducting a foreclosure sale, when a borrower submits a complete loss mitigation application more than 37 days before a scheduled sale — until the conditions in that subsection are met.

Where this fits

These federal rules sit on top of state foreclosure law. They do not replace state notice and sale requirements, and they apply to covered loans and servicers as defined in Regulation X.

Read the rule

Read the full text of 12 C.F.R. § 1024.41 for definitions, exemptions and timelines.

Researching pre-foreclosure protections in your state

First, find the statute or rule that governs pre-foreclosure protections where you live. State law controls most of these questions, so the answer can change from one state to the next. Next, read recent decisions from the appellate courts in your state. They show how judges apply the law today. Also, check the local rules of the court that would hear your case. Our state procedures guide links to each state’s official rules. In addition, the Research Center explains how to confirm a source is still good law.

Sources and further reading

Official sources used on this page:

• law.cornell.edu
• ecfr.gov

Related reading on Lawtopolis:

• Foreclosure: How It Works
• Nonjudicial Foreclosure (Power of Sale)
• Judicial Foreclosure