Freddie Mac Single-Family Seller/Servicer Guide §9301.2 — Preforeclosure and referral requirements (09/10/25)
Freddie Mac Guide §9301.2 (Preforeclosure and referral requirements). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §9301.2 — Preforeclosure and referral requirements (09/10/25) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Freddie Mac Guide 9301.2
(09/10/25) This section contains information related to: ■ Preforeclosure referral account review ■ Referral to foreclosure ■ When to refer a Mortgage to foreclosure – Primary Residence ■ When to refer a Mortgage to foreclosure for a non-Primary Residence ■ Approving referral to foreclosure on a First Lien Mortgage ■ Referral to foreclosure documentation requirements (a) Preforeclosure referral account review (i) Review of the Mortgage file 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.
Freddie Mac Guide 9301.2
301-3 The Servicer must document the results of its review in the Mortgage file or servicing system. (ii) 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 9301.2(e) for a list of affected property conditions). See also Section 8801.4(a) regarding prior approval required from Freddie Mac for Cooperative Share Loans. Servicers must send approval requests to [email protected]. Refer to Chapter 8403 for additional Servicing Contract requirements for Servicing Mortgages on distressed properties. Refer to Chapter 9101 for additional Servicing Contract requirements for Servicing Mortgages that secure Primary Residences. (b) Referral to foreclosure Referral to foreclosure is the submission of a Mortgage case and appropriate foreclosure documentation to foreclosure counsel after taking all appropriate actions to accelerate the Mortgage. Refer to Sections 9301.2(c) and 9301.2(d) for requirements for when to refer a Mortgage to foreclosure. (c) When to refer a Mortgage to foreclosure – Primary Residence (i) General requirements The Servicer must refer a Mortgage to foreclosure after expiration of the breach letter, but no earlier than 151 days from the DDLPI (121st day of Delinquency). However, Servicers may not refer a Mortgage to foreclosure if prohibited by applicable law or one of the following situations applies: ■ There is an approved payment arrangement or an alternative to foreclosure; or ■ A complete Borrower Response Package is received and the Servicer is still within the 30-day evaluation time period for evaluating the package as prescribed in Section 9102.5(c); or ■ The Servicer has extended an offer for an alternative to foreclosure and the period for the Borrower’s response has not expired; or ■ The Borrower has accepted an offer for an alternative to foreclosure and is performing in accordance with its terms; or
Freddie Mac Guide 9301.2
301-4 ■ The time period for the Borrower to exercise a right to appeal a denial of a Trial Period Plan or loan modification (per Section 9101.2) has not expired, the Servicer is reviewing the Borrower’s appeal, or the Borrower’s time period to respond to the Servicer’s decision on the appeal and any acceptance period for an alternative to foreclosure offered as part of that decision has not expired Refer to Section 9101.3 for additional foreclosure suspension requirements when the First Complete Borrower Response Package is received more than 37 days prior to a scheduled foreclosure sale date. To accept an offer A Borrower’s notification to the Servicer that he or she intends to accept an offer of an alternative to foreclosure may be demonstrated as follows: ■ Verbal notification ■ Written notification If a payment is required to legally accept an alternative to foreclosure offer, and the Borrower does not communicate a verbal or written rejection of the alternative to foreclosure offer, the Servicer must postpone referral to foreclosure, where legally permitted, at least through the last day of the month in which the first payment is due under the terms of the alternative to foreclosure offer or until the deadline for Borrower acceptance has passed. If the Servicer receives the first payment timely in accordance with the terms of a Trial Period Plan, repayment plan or forbearance plan, the Servicer must delay the next legal action unless the Borrower breaches the plan. (ii) Mortgages insured by the FHA or guaranteed by the VA or RHS or covered by mortgage insurance The Servicer must comply with the foreclosure referral requirements of the FHA, VA, RHS or MI, if applicable. (iii)Performance measurement Regardless of the reason for the delay in referral to foreclosure beyond 151 days from the DDLPI (121st day of Delinquency), the Servicer’s performance will be measured against Freddie Mac’s State foreclosure timelines (refer to Exhibit 83, Freddie Mac State Foreclosure Timelines). (d) When to refer a Mortgage to foreclosure for a non-Primary Residence (i) General requirements
Freddie Mac Guide 9301.2
301-5 The Servicer must refer a Mortgage to foreclosure no later than 150 days from the DDLPI (120th day of Delinquency) unless the pre-referral accounts review indicates that: ■ There is an approved payment arrangement or an alternative to foreclosure; or ■ A complete Borrower Response Package is received and the Servicer is still within the 30-day evaluation time period for evaluating the package as prescribed in Section 9102.5(c); or ■ The Servicer has extended an offer for an alternative to foreclosure (except for an offer for a Freddie Mac Standard Short Sale (“short sale”) or Freddie Mac Standard Deed-in-Lieu of Foreclosure (“deed-in-lieu of foreclosure”)), and the period for the Borrower’s response has not expired; or ■ The Borrower has accepted an offer for an alternative to foreclosure and is performing in accordance with its terms Note: The Mortgage must be referred to foreclosure and foreclosure proceedings must continue if the Servicer sends the Borrower an offer to pursue a short sale or deed-in-lieu of foreclosure. To accept an offer A Borrower’s notification to the Servicer that he or she intends to accept an offer to an alternative to foreclosure may be demonstrated as follows: ■ Verbal notification ■ Written notification If a payment is required to legally accept an alternative to foreclosure offer, and the Borrower does not communicate a verbal or written rejection of the alternative to foreclosure offer, the Servicer must postpone referral to foreclosure, where legally permitted, at least through the last day of the month in which the first payment is due under the terms of the alternative to foreclosure offer or until the deadline for Borrower acceptance has passed. If the Servicer receives the first payment timely in accordance with the terms of a Trial Period Plan, the Servicer must delay the next legal action unless the Borrower breaches the plan. Additionally, unless Freddie Mac requires the Servicer to obtain Freddie Mac’s approval prior to referral to foreclosure (refer to Section 9301.2(f) for instances where Freddie Mac must approve the referral of the Mortgage to foreclosure), if the Borrower has abandoned the property, then the Servicer may refer to foreclosure as soon as it is legally possible to do so. The Servicer must send approval requests to [email protected].
Freddie Mac Guide 9301.2
301-6 (ii) Mortgages insured by the FHA or guaranteed by the VA or RHS or covered by mortgage insurance The Servicer must comply with the foreclosure referral requirements of the FHA, VA, RHS or MI, if applicable. (iii)Performance measurement Regardless of the reason for the delay in referral to foreclosure beyond 150 days from the DDLPI (120th day of Delinquency), the Servicer’s performance will be measured against Freddie Mac’s State foreclosure timelines (refer to Exhibit 83). (e) Approving referral to foreclosure on a First Lien Mortgage (i) Referral to foreclosure on a First Lien Mortgage The Servicer is responsible for referral to foreclosure on a First Lien Mortgage. The Servicer does not need Freddie Mac’s approval unless one or more of the following conditions exist.
Freddie Mac Guide 9301.2
301-7 Freddie Mac’s approval is required If the property has... Then the Servicer must... And... Hazardous Substances located on or near that could impact the habitability, value or occupancy of the property Request Freddie Mac’s approval to refer to foreclosure by submitting a detailed description of the issue and the Servicer’s recommendation for a First-Lien Mortgage to Freddie Mac (see Directory 5) within five Business Days of discovering the condition Freddie Mac will approve or deny the referral to foreclosure and provide any necessary instructions to the Servicer Damage from fire, flood or natural or man- made disaster Deteriorated and requires asset preservation or the property is a Manufactured Home that has significantly decreased in value A forfeiture action being litigated If the 2- to 4-unit property was built before 1978 and located in Massachusetts, refer to Section 9301.2(e)(iii) before initiating foreclosure. If the property was built before 1960 and located in New York City (Brooklyn, Bronx, Manhattan, Queens or Staten Island), refer to the requirements in Section 9202.2(c) before initiating foreclosure. Refer to Chapter 8403 for additional Servicing Contract requirements for Servicing Mortgages on distressed properties. Refer to Chapter 8404 for additional Servicing Contract requirements for Mortgages secured by properties impacted by a disaster. (ii) Referral to foreclosure on Servicemembers or their Dependents The Servicemembers Civil Relief Act, State Military Relief Laws and Freddie Mac- specific protections provided in Chapter 8503 limit the ability of a Servicer to refer to or
Freddie Mac Guide 9301.2
301-8 complete foreclosure on Mortgages involving Servicemembers or Dependents, as those terms are defined in Chapter 8503. If the Servicer believes there are circumstances that warrant an exception to these requirements, the Servicer must submit Form 105, Multipurpose Loan Servicing Transmittal for a First-Lien Mortgage, and provide all relevant information supporting the exception request. Refer to Chapter 8503 for further details regarding foreclosure limitations involving Servicemembers and Dependents. (iii)Tenant-occupied properties built before 1978 Before referring a Mortgage to foreclosure on a tenant occupied property built before 1978, if the Servicer is aware of, or becomes aware of, outstanding lead-based paint or health code citations or violations against the property or property owner, then the Servicer must notify Freddie Mac (see Directory 5) and include the following: 1. A copy of the citation 2. Copies of documentation related to a lead-based paint violation After reviewing the documentation, Freddie Mac will provide the Servicer with instructions on the course of action to take. (f) Referral to foreclosure documentation requirements (i) Foreclosure documentation requirements Appropriate foreclosure documentation includes, but is not limited to, all documents required by the foreclosure counsel to complete the first legal action. The Servicer must continue to comply with applicable law, but at a minimum, must supply the foreclosure counsel with the following: 1. Copies of the Note (or the original Note if required by applicable law) evidencing the indebtedness along with any intervening assignments, endorsements, powers of attorney or any applicable modifying instrument, such as a modification, a conversion agreement or an assumption of indebtedness and release of liability agreement 2. Mortgage or deed of trust 3. Copy of the original title insurance policy. For Cooperative Share Loans recognized as personal property, refer to Section 8801.1(f) regarding certain Servicer warranties required when foreclosing on a Cooperative Share Loan. 4. Copy of the breach, acceleration or demand letter sent to the Borrower 5. Military affidavits 6. Executed Substitution of Trustee, as necessary
Freddie Mac Guide 9301.2
301-9 7. Payoff statement with per diem interest as of the date of the foreclosure referral 8. Send foreclosure counsel the following information by facsimile transmission or other electronic means: ■ Name, mailing address and telephone number of the Borrower(s) ■ Property address (if different from the Borrower’s mailing address) ■ A statement that the Mortgage is a Freddie Mac-owned Mortgage and includes the nine-digit Freddie Mac loan number ■ Name and address of the person to contact in the Servicer’s foreclosure department If Freddie Mac needs to execute a document that is not authorized for the Servicer to execute under the Limited Power of Attorney (see Exhibit 53) for the Servicer to conduct the foreclosure, the Servicer must submit the document with Form 105, Multipurpose Loan Servicing Transmittal, to Freddie Mac (see Directory 5). Refer to Section 9301.3(c) for assigning Security Instruments back to the Servicer if an assignment of the Security Instrument to Freddie Mac has been recorded. Note: Refer to Sections 8101.2(b) and 8601.2(b) for requirements on obtaining a Limited Power of Attorney for Freddie Mac to sign documents on behalf of Freddie Mac. (ii) Referral to foreclosure documentation requirements on a Mortgage secured by a Manufactured Home In addition to the above requirements, if the Mortgage is secured by a Manufactured Home, the Servicer must notify the foreclosure counsel that the property is a Manufactured Home when it submits the case to the foreclosure counsel. The Servicer must also provide the foreclosure counsel with evidence that the property is legally classified as real property under the laws in the State where the property is located. (iii)Evidence that the property is real property in a non-certificate of title State The Servicer must provide the foreclosure counsel with copies of the following documentation in non-certificate of title States (see Section 5703.4(f)(i)) evidencing that the Manufactured Home and the land are real property under the laws of the State where the property is located: ■ Information stating the legal basis (statutory or common law) for determining that the Manufactured Home is real property that is exempt from certificate of title requirements. This information may be included in the documentation received at
Freddie Mac Guide 9301.2
301-10 origination of the Mortgage from the title insurance company that the Manufactured Home is real property, and ■ Evidence that a certificate of title has not been issued, such as the manufacturer’s statement of origin, if the manufacturer’s statement of origin is not required to be surrendered to a State agency (iv) Evidence that the property is real property in a certificate of title surrender State The Servicer must provide the foreclosure counsel with copies of the following documentation in certificate of title surrender States (see Section 5703.4(f)(ii)) evidencing that the Manufactured Home and the land are real property under the laws of the State where the property is located: ■ A certificate of cancelation, notification letter or other acknowledgment from the Department of Motor Vehicles (DMV) or the appropriate State agency to which the certificate of title was surrendered, or a copy of the documents submitted in connection with the surrender along with evidence that the documents were delivered and received by the appropriate State agency, and ■ Copies of the documents, such as an affidavit of affixture, recorded in the land records as part of the title surrender procedures to show the Manufactured Home has been converted to real property (v) Evidence of clear and marketable title to the Manufactured Home and land in certificate of title States The Servicer must provide the foreclosure counsel with the following documentation in certificate of title States (see Section 5703.4(f)(iii)) evidencing the Borrower’s ownership of both the Manufactured Home and the land on which it is permanently affixed and documentation evidencing that the land is legally classified as real property under the laws in the State where the property is located: ■ The original or a copy of the certificate of title showing the Borrower as owner of the Manufactured Home. The certificate of title must have a notation of the original Seller/Servicer’s security interest in the Manufactured Home in the name of the Seller and its successors in interest and assigns and have a notation of all intervening assignments from the original mortgagee to each successive Servicer, ending with the current Servicer, and ■ A copy of the deed evidencing ownership of the land showing the owner of the land on the deed to be identical to the owner of the Manufactured Home on the certificate of title This and any other relevant information must be provided within five days of the referral to foreclosure so that the foreclosure counsel has the information necessary to
Freddie Mac Guide 9301.2
301-11 simultaneously enforce the liens (whenever possible) and so as not to unnecessarily lengthen the foreclosure process.