EverBank failed to comply with a condition precedent to foreclosure, imposed by HUD regulations, requiring that in the event of payment default, the mortgagee have a face-to-face meeting with the mortgagor, or make a reasonable effort to do so.
This was a Massachussets Appeal Court case entitled Everbank v. Chacon, that was originally filed in the Chapter 7 bankruptcy court.
Download EverBank v Chacon.
The regulation reads, “[t]he mortgagee must have a face-to-face interview with the mortgagor, or make a reasonable effort to arrange such a meeting,” before commencing foreclosure proceedings or acquiring title to the property. 24 C.F.R. § 203.604(b) (2016). See 24 C.F.R.§ 203.500 (2016).
The purpose of a face-to-face interview is to discuss the possibility of a repayment plan, modification of the mortgage, or other measures that may avoid the need for foreclosure and allow the mortgagor to remain in his or her residence and repay…
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