Freddie Mac Single-Family Seller/Servicer Guide 9209.4 — Borrower communication and execution timelines for deeds-in-lieu of foreclosure

Freddie Mac Single-Family Seller/Servicer Guide 9209.4 — Borrower communication and execution timelines for deeds-in-lieu of foreclosure

Effective 2025-09-10 · Freddie Mac's stamp for this section

In addition to the response requirements related to Borrower Response Packages addressed in Section 9102.5, the following chart sets forth the required response times when a Freddie Mac Standard Deed-in-Lieu of Foreclosure (“deed-in-lieu of foreclosure”) is being considered as a solution to the Delinquency for either a Mortgage that is not secured by a Primary Residence or a Mortgage that is secured by Primary Residence and the Servicer is not evaluating the Borrower for a deed-in-lieu of foreclosure using the First Complete Borrower Response Package received more than 37 days prior to a scheduled foreclosure sale date. Deed-in-lieu of foreclosure: submission of Borrower Response Package or streamlined documentation Days Action required 30 days Within five days of an evaluation decision, but in no event later than 30 days following the receipt of a complete Borrower Response Package or streamlined documentation, the Servicer must send an Evaluation Notice to the Borrower. The Evaluation Notice must include approved model language for a deed-in-lieu of foreclosure, or similar language drafted by the Servicer. 14 days The Servicer must allow the Borrower 14 days from the date the Evaluation Notice is sent to accept the offer to pursue a deed-in-lieu of foreclosure. 60 days (no later than 90 days) The Servicer must receive all necessary approvals (e.g., title, secondary lien(s), MI) and execute the deed-in-lieu of foreclosure within 60 days of the date the Borrower’s communication to accept the offer was received. If the Servicer is unable to execute the deed-in-lieu of foreclosure within 60 days due to delays encountered as a result of issues with title, secondary lien(s) or MI approval, the Servicer must continue working with the Borrower to resolve these issues. In these instances, the Servicer will be allotted an additional 30 days to execute the deed-in-lieu of foreclosure, and, during this time, the Servicer must provide weekly status updates to the Borrower (90 days maximum from the date the Borrower’s communication to accept the offer was received to the date the deed-in-lieu of foreclosure is executed). The Servicer must maintain documentation of all communications to and from the Borrower, whether verbal or written, and including status updates, either in the Mortgage file or in the Servicer’s Servicing system. In addition, the Servicer must provide the information to Freddie Mac for review upon request. Refer to Section 9101.3 for foreclosure suspension requirements for deeds-in-lieu of foreclosure when the First Complete Borrower Response Package is more than 37 days prior to a scheduled foreclosure sale and results in an offer to proceed with a deed-in-lieu of foreclosure. Refer to Sections 9102.5(c) and 9301.7(a) for foreclosure suspension requirements when the Mortgage has been referred to foreclosure for either a Mortgage that is not secured by a Primary Residence or a Mortgage that is secured by a Primary Residence and the Servicer is not evaluating the Borrower for a deed-in-lieu of foreclosure based on the First Complete Borrower Response Package received more than 37 days prior to a scheduled foreclosure sale date.

Source: Freddie Mac Single-Family Seller/Servicer Guide 9209.4 — Borrower communication and execution timelines for deeds-in-lieu of foreclosure · source URL · snapshot 4c94f67729042dd6