List loss-mitigation dates and write no borrower letter
Key facts
- Human involvement
- RedLawyer-led
- How AI is used
- List the date an application arrived, any foreclosure-sale date in the file, and whether the file calls the application complete. Write no letter and do not decide that an option must be offered.
- What the lawyer must review
- 12 C.F.R. section 1024.41 sets loss-mitigation procedures for a mortgage servicer. It is not a hardship variation under the National Credit Code. Paragraph (a) says nothing in the section imposes a duty to provide any specific loss mitigation option. If an application is received 45 days or more before a foreclosure sale, paragraph (b)(2) requires a prompt completeness review and a written acknowledgment within 5 days, excluding legal public holidays, Saturdays, and Sundays. An incomplete-application notice states the missing documents and a reasonable date for submitting them. If a complete application is received more than 37 days before a foreclosure sale, paragraph (c)(1) requires the servicer, within 30 days, to evaluate the borrower for all loss mitigation options available and to give a written notice of which options, if any, it will offer. Paragraph (c)(3)(i) requires a complete-application notice within the same 5-day count, including that the application is complete, the date received, the expected 30-day evaluation, the foreclosure-protection statement that matches whether the first foreclosure notice or filing has been made, that more information may be requested, and that the borrower may have additional protections under state or federal law. Paragraph (e) allows the servicer to require acceptance or rejection no earlier than 14 days after the offer when the complete application was received 90 days or more before the sale, and no earlier than 7 days when it was received less than 90 days but more than 37 days before the sale. Paragraph (c)(2)(iii) allows a short-term forbearance or repayment plan on an incomplete application, with a prompt written notice of the payment terms and duration, that the offer rested on an incomplete application, that other options may be available, and that the borrower may submit a complete application. While the borrower performs under that program or plan, the servicer shall not make the first foreclosure notice or filing, move for foreclosure judgment or an order of sale, or conduct a sale. The lawyer writes every borrower notice. The Cornell page is not the official edition.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Supporting preparation only. Consider narrowly defined preparation support after confirming the tool’s capability and permitted scope. The tool writes nothing into the document. Substantive advice, judgement and any restricted content remain with the responsible human. |
| Lawyer | Perform the substantive analysis and decisions. Independently check any permitted supporting work and approve the exact output for its intended use. |
Checklist
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Check the current court or regulator requirements, prescribed form and attachments for the intended document and filing.
- Review the original source set for relevant material absent from the output, including contrary evidence, qualifications and remaining gaps.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.