9301.4: Pre-foreclosure referral account review (08/01/18)
- Kacey Olson (Unlicensed)
© Freddie Mac Single-Family Seller Servicer Guide
Within 15 days prior to referral to foreclosure, the Servicer must review the Mortgage file to verify that it made every attempt to achieve quality right party contact in accordance with Section 9102.3, and there is no approved payment arrangement or pending alternative to foreclosure offer for which the Borrower response period has not expired.
In the event that the Servicer finds that there is an approved payment arrangement or a pending offer for an alternative to foreclosure for which the Borrower response period has not expired, then the Servicer must not refer the Mortgage to foreclosure.
The Servicer must document the results of its review in its Mortgage file or Servicing system.
Prior approval required from Freddie Mac
The Servicer must seek Freddie Mac's approval to refer the Mortgage to foreclosure if the property inspections or any other information provided to the Servicer indicates that proceeding with referral may not be in Freddie Mac's best interest or that the property is considered a distressed property (see Section 9301.8 for a list of affected property conditions).
Refer to Chapter 8403 for additional Servicing requirements for Servicing Mortgages on distressed properties.
Refer to Chapter 9101 for additional Servicing requirements for Servicing Mortgages that secure Primary Residences.