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What does my mortgage servicer have to do under federal rules?

If you fall behind on the home you live in, federal rules called Regulation X give your servicer clear duties. They must try to reach you by day 36, send written help options by day 45, and, for many loans, generally cannot make the first foreclosure notice until you are more than 120 days behind, with some exceptions. A complete application for help that the servicer receives in time can add more protection, but it does not guarantee approval.

By Guillermo Serafin, broker and owner of Serve First Realty. Updated October 2026.

Who do these rules protect?

Regulation X comes from a federal law called RESPA. These rules cover most mortgages on a home that is your main home. A few points to know:

  • Your servicer is the company you send payments to. It may not own your loan.
  • Reverse mortgages and some other loans are not covered.
  • Very small servicers skip many of these rules, but they still cannot foreclose on you while certain complete applications are pending.
  • If you got the home from a family member, for example after a death, and the servicer confirms you as a successor in interest, you are treated as a borrower under these rules.

What must happen in the first 45 days?

  • By day 36 of being late, the servicer must talk to you live, or make good-faith tries to reach you.
  • By day 45, the servicer must send you a letter that explains the help options you may have.
  • Generally by day 45, the servicer must give you staff who can help you through the process.

Answer these calls and letters. They are your first chance to ask for help.

What is the 120-day rule?

Generally, your servicer cannot make the first notice or filing for foreclosure until you are more than 120 days behind. In California, that first step is usually recording a Notice of Default. California's own outreach rules can happen during those same 120 days. They do not add another 120 days.

There are some exceptions, such as certain due-on-sale cases. And if the servicer receives your complete application before foreclosure starts, it generally cannot make that first filing while it reviews your application.

What must the servicer do with my application?

An application for help is often called a loss mitigation application. It can ask for a loan modification, a payment plan, or another option. Here is what the federal rules generally require:

  • If your application arrives at least 45 days before a sale, the servicer must tell you within 5 days, not counting weekends and federal holidays, whether it is complete or what is missing.
  • If your complete application arrives more than 37 days before a sale, the servicer must decide within 30 days. A complete application received this early can also limit the servicer from going ahead with the sale.
  • If you are turned down for a loan modification, you may be able to appeal. This is generally available if your application came in at least 90 days before a sale, or before foreclosure started.
  • You get at least 14 days to appeal. The servicer generally decides an appeal within 30 days.

The lesson is simple: apply early, and send everything they ask for. A complete application that the servicer receives early has the strongest protection. Sending papers to us or to this website is not the same as your servicer receiving them. Our loan modification checklist can help.

What these rules do not do

  • They do not promise you a loan modification. They make the servicer review you fairly and on time.
  • A phone call or a half-finished application does not give you the same protection as a complete one.
  • A promise on the phone is not a stopped sale. Learn how to check if a sale is really postponed.

Does California add more protection?

Often, yes. For covered loans, the California Homeowner Bill of Rights adds its own rules. For many loans these include a single point of contact, though some servicers are exempt, and limits on foreclosing while a complete application the servicer received at least 5 business days before a scheduled sale is under review. Not every protection applies to every loan. Read our guide to the Homeowner Bill of Rights.

What if my servicer breaks the rules?

  • Keep a record of every call, letter, and document. Our servicer call log makes it easy.
  • Call a free HUD-approved housing counselor at 800-569-4287.
  • You can file a complaint with the Consumer Financial Protection Bureau at consumerfinance.gov/complaint or 855-411-2372. The company generally answers within 15 days. The bureau's work has been in flux since 2025, so you may also want to use state options.
  • See our guide on how to complain about your servicer.
  • Talk to a California attorney about your rights. A complaint by itself does not stop a sale.

General information, not legal advice. Time periods are general rules with exceptions, not promises. Sources: 12 C.F.R. sections 1024.30, 1024.39, 1024.40, and 1024.41 (Regulation X under RESPA); California Civil Code sections 2923.5, 2923.55, 2923.6, and 2923.7.

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IMPORTANT NOTICE

Serve First Realty is not associated with the government, and our service is not approved by the government or your lender.

Even if you accept this offer and use our service, your lender may not agree to change your loan.

Asking for a guide or giving contact permission does not stop foreclosure or extend a deadline.

Not sure your servicer is following the rules? Talk to us.

A free call can help you understand where you stand and what to ask for. It does not stop a foreclosure or extend a deadline.

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