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**U. S. Department of Housing and Urban Development**

Washington, D.C. 20410-8000

August 30, 1991

OFFICE OF THE ASSISTANT SECRETARY

FOR HOUSING-FEDERAL HOUSING COMMISSIONER

**MORTGAGEE LETTER 91-41**

TO: ALL APPROVED MORTGAGEES

ATTENTION: Single Family Servicing Managers

**SUBJECT:** First Legal Action to Commence (Institute) Foreclosure

A mortgagee is required by 24 CFR 203.355 to commence

foreclosure (the first legal action to foreclose) within one year

from the date of default or if applicable, 60 days after the

lifting of a prohibition established by state law. (Even though

the mortgagor files for bankruptcy under Federal law, for purposes

of this regulation, HUD considers release of stay as the

lifting of a prohibition established by state law.) When mortgagees

fail to meet this time requirement, debenture interest on

an insurance claim will be curtailed. \"Commencement of Foreclosure\"

for HUD\'s purposes is the first public action required

by law such as filing a complaint or petition, recording a notice

of default, or publication of a notice of sale. Merely posting

notice on the premises does not constitute commencement of

foreclosure and is not sufficient to satisfy HUD\'s regulatory

requirement. Also, although in some states the mailing of a

Notice of Default may be an action required by law, it is not a

public action and does not meet HUD\'s definition of the first

legal action to commence foreclosure. The action must be

established as a public record through a filing or recording, or

the notice of sale must be published in a newspaper of general

circulation as required by law.

This mortgagee letter provides mortgagees with a list of

actions the Department currently considers as the first legal

action to commence foreclosure. (See Attached List) The

Department will from time to time update this listing, however,

it is the mortgagees\' responsibility to keep informed of any

changes in state law which may result in a revision to these

events. In the event a method of foreclosure is used which is

not the norm in a particular state, and the first action is not

contained in the attached list, the mortgagee should ensure that

the date identified as the commencement of foreclosure when

filing an insurance claim meets the criteria as stated above. If

you have any questions, please contact your local HUD Office.

Sincerely yours,

Arthur J. Hill

Assistant Secretary for

Housing-Federal Housing Commissioner

Attachment

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ACTION CONSIDERED BY THE

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

AS THE FIRST LEGAL ACTION TO COMMENCE (INSTITUTE) FORECLOSURE

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TYPICAL

TYPE OF HUD NORMAL

STATE SECURITY METHOD OF

CODE STATE INSTRUMENT FORECLOSURE

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01 Alabama Mortage Non-Judicial

11 Alaska Deed of Trust Non-Judicial

02 Arizona Deed of Trust Non-Judicial

03 Arkansas Deed of Trust Non-Judicial

04 California Deed of Trust Non-Judicial

05 Colorado Deed of Trust Non-Judicial

06 Connecticut Mortgage Judicial

07 Delaware Mortgage Judicial

08 District of Columbia Deed of Trust Non-Judicial

09 Florida Mortgage Judicial

10 Georgia Security Deed Non-Judicial

14 Hawaii Mortgage Judicial

12 Idaho Deed of Trust Non-Judicial

13 Illinois Mortgage Judicial

15 Indiana Mortgage Judicial

16 Iowa Mortgage Judicial

18 Kansas Mortgage Judicial

20 Kentucky Mortgage Judicial

22 Louisiana Mortgage Judicial

23 Maine Mortgage Judicial

24 Maryland Mortgage Judicial

Deed of Trust Non-Judicial

25 Massachusetts Mortgage Non-Judicial

26 Michigan Mortgage Non-Judicial

27 Minnesota Mortgage Deed Non-Judicial

28 Mississippi Deed of Trust Non-Judicial

29 Missouri Deed of Trust Non-Judicial

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ACTION CONSIDERED BY THE

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

AS THE FIRST LEGAL ACTION TO COMMENCE (INSTITUTE) FORECLOSURE

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

TYPICAL

TYPE OF HUD FIRST

STATE SECURITY FORECLOSURE

CODE STATE INSTRUMENT ACTION

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01 Alabama Mortage Publication

11 Alaska Deed of Trust Recording of Notice of

Default

02 Arizona Deed of Trust Recording of Notice of Sale

03 Arkansas Deed of Trust Recording of Notice of

Default

04 California Deed of Trust Recording of Notice of

Default

05 Colorado Deed of Trust Recording of Notice of

Election and Demand for Sale

06 Connecticut Mortgage Complaint

07 Delaware Mortgage Complaint

08 District of Columbia Deed of Trust Recording of Notice of

Default

09 Florida Mortgage Complaint

10 Georgia Security Deed Publication

14 Hawaii Mortgage Complaint

12 Idaho Deed of Trust Recording of Notice of

Default

13 Illinois Mortgage Complaint

15 Indiana Mortgage Complaint

16 Iowa Mortgage Petition

18 Kansas Mortgage Complaint

20 Kentucky Mortgage Complaint

22 Louisiana Mortgage Petition for Executory

Process

23 Maine Mortgage Complaint

24 Maryland Mortgage Petition in Equity

Deed of Trust Filing an Order to Docket

25 Massachusetts Mortgage Publication

26 Michigan Mortgage Publication

27 Minnesota Mortgage Deed Publication

28 Mississippi Deed of Trust Publication

29 Missouri Deed of Trust Publication

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ACTION CONSIDERED BY THE

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

AS THE FIRST LEGAL ACTION TO COMMENCE (INSTITUTE) FORECLOSURE

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

TYPICAL

TYPE OF HUD NORMAL

STATE SECURITY METHOD OF

CODE STATE INSTRUMENT FORECLOSURE

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

31 Montana Trust Indenture Non-Judicial

32 Nebraska Mortgage Judicial

33 Nevada Deed of Trust Non-Judicial

34 New Hampshire Mortgage Non-Judicial

35 New Jersey Mortgage Judicial

36 New Mexico Mortgage Judicial

37 New York Mortgage Judicial

38 North Carolina Deed of Trust Non-Judicial

40 North Dakota Mortgage Judicial

41 Ohio Mortgage Deed Judicial

42 Oklahoma Mortgage Judicial

43 Oregon Deed of Trust Non-Judicial

44 Pennsylvania Mortgage Judicial

45 Rhode Island Mortgage Non-Judicial

46 South Carolina Mortgage Judicial

47 South Dakota Mortgage Judicial

48 Tennessee Deed of Trust Non-Judicial

49 Texas Deed of Trust Non-Judicial

52 Utah Mortgage Judicial

Deed of Trust Non-Judicial

53 Vermont Mortgage Judicial

54 Virginia Deed of Trust Non-Judicial

56 Washington Mortgage or Judicial

Deed of Trust Non-Judicial

57 West Virginia Deed of Trust Non-Judicial

58 Wisconsin Mortgage Judicial

59 Wyoming Mortgage Non-Judicial

50 Puerto Rico Mortgage Judicial

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ACTION CONSIDERED BY THE

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

AS THE FIRST LEGAL ACTION TO COMMENCE (INSTITUTE) FORECLOSURE

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

TYPICAL

TYPE OF HUD FIRST

STATE SECURITY FORECLOSURE

CODE STATE INSTRUMENT ACTION

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

31 Montana Trust Indenture Recording of Notice of

Sale

32 Nebraska Mortgage Petition

33 Nevada Deed of Trust Recording of Notice of

Default

34 New Hampshire Mortgage Publication

35 New Jersey Mortgage Complaint

36 New Mexico Mortgage Complaint

37 New York Mortgage Complaint

38 North Carolina Deed of Trust Notice of Hearing

40 North Dakota Mortgage Complaint

41 Ohio Mortgage Deed Complaint

42 Oklahoma Mortgage Petition

43 Oregon Deed of Trust Recording of Notice of

Default

44 Pennsylvania Mortgage Complaint

45 Rhode Island Mortgage Publication

46 South Carolina Mortgage Complaint

47 South Dakota Mortgage Complaint

48 Tennessee Deed of Trust Publication

49 Texas Deed of Trust Recording of Notice of

Sale

52 Utah Mortgage Complaint

Deed of Trust Recording of Notice of

Default

53 Vermont Mortgage Complaint

54 Virginia Deed of Trust Publication

56 Washington Mortgage or Complaint

Deed of Trust Recording of Notice of

Sale

57 West Virginia Deed of Trust Publication

58 Wisconsin Mortgage Complaint

59 Wyoming Mortgage Publication

50 Puerto Rico Mortgage Complaint