; and (VI) notify the borrower of the transferred loan that the new servicer is required to accept and continue processing prior loan modification requests, if any, and is required to honor trial and permanent loan modification agreements entered into by the transferring servicer, if any. (ii) Honoring of existing loan modifications and applications in process The successor servicer shall agree to honor and accept any existing loan modification and continue any loan modification applications. (iii) Prohibition on foreclosure During the 60-day period beginning on the effective date of transfer of the servicing of any federally related mortgage loan, the mortgage loan subject to such transfer may not be subject to initiation of a judicial or nonjudicial foreclosure or be subject to a foreclosure sale. (4) Subsequent applications for affordable loan modification If a borrower has submitted an application or request in the past, the servicer shall allow such borrower to make a subsequent affordable loan modification application if the borrower experiences a material change in circumstances, as defined by the Bureau. (5) Limitation on foreclosure proceedings (A) Halt to foreclosure and cancellation of scheduled sale pending application (i) In general If a borrower submits an initial application for affordable loan modification assistance more than 7 business days before a scheduled foreclosure sale, the servicer must stop and cancel the foreclosure sale and may not continue a nonjudicial foreclosure or a judicial foreclosure against the mortgagor. (ii) Treatment if no foreclosure has been initiated For purposes of clause (i), if no foreclosure has been initiated at the time of a mortgagor’s initial application for affordable loan modification assistance, then an initial application is deemed to have been submitted more than 7 business days before a scheduled foreclosure sale. (iii) Treatment if a foreclosure has been initiated but no sale scheduled For purposes of clause (i), if a foreclosure has been initiated at the