Freddie Mac Single-Family Seller/Servicer Guide §9301.8 — Foreclosure sale and bidding requirements (09/10/25)
Freddie Mac Guide §9301.8 (Foreclosure sale and bidding requirements). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §9301.8 — Foreclosure sale and bidding 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 9301.8
(09/10/25) This section contains requirements related to: ■ Delegated bidding ■ When to obtain a credit bid for foreclosure sale bidding ■ Requirements for and reimbursement of appraisal reports ■ Bidding instructions for First Lien Mortgages not covered by mortgage insurance or subject to credit enhancements
Freddie Mac Guide 9301.8
301-45 ■ Bidding instructions for Mortgages covered by mortgage insurance or subject to credit enhancements ■ Bidding instructions for Mortgages insured by the FHA or guaranteed by the VA or RHS ■ Bidding appropriately and pursuit of surplus proceeds or overbid funds (a) Delegated bidding The Servicer must offer a bid on all foreclosures. Freddie Mac delegates to the Servicer responsibility to establish the bid according to the guidelines in Sections 9301.8(d) through 9301.8(f). However, if any of the following conditions exist, the Servicer must contact Freddie Mac at least ten Business Days prior to the foreclosure sale date: Conditions that require the Servicer to contact Freddie Mac Condition Contact requirement 1. It is not in Freddie Mac’s best interest for the Servicer to enter a bid in accordance with the guidelines The Servicer must e-mail Form 105, Multipurpose Loan Servicing Transmittal, for a First-Lien Mortgage to Freddie Mac at [email protected] 2. A hazard insurance claim is pending and the bid will jeopardize the approval or payout of the claim The Servicer must e-mail Form 105 for a First-Lien Mortgage to Freddie Mac at [email protected] 3. The Servicer is unable to obtain a credit bid (see Section 9301.8(b) on obtaining a credit bid for foreclosure sale bidding) and bid in accordance with Section 9301.8(d), or the Servicer disputes the credit bid obtained in connection with a scheduled foreclosure sale The Servicer must e-mail Form 105 for a First-Lien Mortgage to Freddie Mac at [email protected]. If the Servicer disputes the credit bid obtained in connection with a scheduled foreclosure sale, and Freddie Mac decides to update or change the credit bid obtained by the Servicer via the Freddie Mac Real Estate Valuation and Pricing tool (see Exhibit 88, Servicing Tools), Freddie Mac will notify the Servicer that the credit bid has been updated prior to the foreclosure sale date. (See Section 9301.8(b) on updated credit bids.) 4. The Servicer is unable to obtain a credit bid via the Freddie Mac Real Estate Valuation and Pricing tool (and bid in accordance with Section The Servicer must e-mail Form 105 for a First-Lien Mortgage to Freddie Mac at [email protected]
Freddie Mac Guide 9301.8
301-46 9301.8(d)) because the foreclosure sale is of a property subject to resale restrictions (in accordance with Chapters 4406, 4504 or 4502, as applicable), but the resale restrictions terminate upon foreclosure (or expiration of any applicable redemption period) or recordation of a deed-in-lieu of foreclosure If Freddie Mac provides bidding instructions and/or offers a bid for a foreclosure sale in response to the contact requirements above, the Servicer must cooperate with Freddie Mac and make every effort to ensure that foreclosure counsel receives the updated bidding instructions in a timely manner so as not to delay, cancel or stop a scheduled foreclosure sale. (b) When to obtain a credit bid for foreclosure sale bidding The Servicer must obtain a credit bid when preparing bids on First Lien Mortgages not covered by mortgage insurance, or when State law does not require that an appraisal report be used to set the bid (see Section 9202.4(a) on obtaining an appraisal report to prepare foreclosure sale bidding instructions). Servicers are not required to obtain credit bids when preparing bids on properties subject to resale restrictions that survive foreclosure or recordation of a deed-in-lieu of foreclosure (in accordance with Chapters 4406, 4502 or 4504, as applicable). The Servicer must refer to the applicable resale restrictions for details on the property valuation and/or the restricted resale price, as well as any other terms and conditions that must be met. To ensure the Servicer has a credit bid in time for the foreclosure sale, Freddie Mac recommends that the Servicer obtain the credit bid via the Freddie Mac Real Estate Valuation and Pricing tool (see Exhibit 88, Servicing Tools) no less than 30 and no more than 90 days before the scheduled foreclosure sale date (see Chapter 2404 for information about access to the Real Estate Valuation and Pricing tool). If the “good through date” returned with the credit bid is set to expire prior to the scheduled foreclosure sale date, then the Servicer needs to proactively request an updated credit bid in time for the scheduled foreclosure sale. Freddie Mac may decide, in its sole discretion or in response to a Servicer’s dispute of the credit bid (see Section 9301.8(a) regarding a Servicer’s dispute of the credit bid obtained in connection with a scheduled foreclosure sale), to update or change the credit bid obtained by the Servicer via the Real Estate Valuation and Pricing tool. In such cases, Freddie Mac will notify the Servicer that the credit bid has been updated prior to the foreclosure sale date, and the Servicer must cooperate with Freddie Mac and make every effort to ensure that foreclosure counsel receives the updated bidding instructions in a timely manner so as not to delay, cancel or stop a scheduled foreclosure sale. If the Servicer is unable to provide the updated bidding instructions to foreclosure counsel in a timely manner, or foreclosure counsel could not use the updated bidding instructions, then
Freddie Mac Guide 9301.8
301-47 the Servicer must document it in the Mortgage file. Under no circumstance should the foreclosure sale be delayed because of the Servicer’s receipt of an updated credit bid. (c) Requirements for and reimbursement of appraisal reports (i) Requirements for appraisals If State or local law requires an appraisal report to establish the bid amount, and Freddie Mac has given the Servicer approval to obtain an appraisal report pursuant to the provisions of Section 9202.4(a), then the appraisal report must: 1. Be completed in accordance with the requirements in Topic 5600 2. Be dated no more than 120 days before the foreclosure sale date 3. Be completed by an appraiser who meets the requirements of Section 5603.1 and who is free from any conflict of interest or financial interest in the transaction other than the appraiser’s reasonable fee for such an opinion 4. Be based on an exterior inspection, if an interior inspection cannot be obtained 5. Document any conditions that relate to the existence of Hazardous Substances or conditions that would affect the habitability, safety, value or occupancy of the property When the appraisal report has become greater than 120 days old, the Servicer must have the appraiser recertify the appraisal report. The Servicer must not order a new appraisal report. (ii) Reimbursement of appraisal reports Freddie Mac will reimburse the Servicer for the cost of an appraisal report ordered in compliance with Section 9202.4(a)(i) and this section. If the Servicer needs to reaffirm the value of the property after 120 days, Freddie Mac will reimburse for a recertification of the appraisal report. (d) Bidding instructions for First Lien Mortgages not covered by mortgage insurance or subject to credit enhancements For a First-Lien Mortgage not covered by mortgage insurance or subject to a credit enhancement, the Servicer must bid in accordance with the requirements provided below: 1. Unless State law requires that an appraisal report be used to set the bid or the foreclosure sale is of a property subject to resale restrictions that survive foreclosure or recordation of a deed-in-lieu of foreclosure (in accordance with Chapters 4406, 4502 or 4504, as applicable), Freddie Mac recommends that the Servicer obtain the credit bid via the Freddie Mac Real Estate Valuation and Pricing tool (see Exhibit 88, Servicing Tools) no
Freddie Mac Guide 9301.8
301-48 less than 30 days, but no greater than 90 days prior to the scheduled foreclosure sale date (See Section 9301.8(b) on obtaining a credit bid for foreclosure sale bidding and Section 9202.4(a) on obtaining an appraisal report to prepare foreclosure sale bidding instructions.) 2. The Servicer must then start its bid at the minimum required by State law. If State law would impose a redemption, confirmation or ratification period because the foreclosure sale price was below a certain amount, the Servicer must bid a sufficient amount that would minimize or avoid any such additional periods from being imposed. Also, if applicable State law gives the Borrower a post-foreclosure sale right of redemption, and the Borrower can redeem the property for the successful foreclosure sale price, the Servicer must start its bid, as applicable, at an amount equal to the lesser of: ■ 100% of the credit bid obtained from the Real Estate Valuation and Pricing tool ■ Total indebtedness, which includes the UPB, accrued interest, Escrow advances and expenses (see Exhibit 57A, Approved Attorney, Foreclosure, Mediation, Postponement Fees and Title Expenses, for the applicable expense limits) ■ Such other amount as may be required by applicable State law (e.g., amount of the judgment); or ■ For the foreclosure sale of a property subject to resale restrictions that survive foreclosure or recordation of a deed-in-lieu of foreclosure, the property valuation and/or the restricted resale price 3. In the event the Servicer worked with its foreclosure attorney to preserve either Freddie Mac’s or the MI’s right to pursue a deficiency action pursuant to Sections 9301.6(a)(ii) and 9301.8(e), respectively, or filed a judicial foreclosure to preserve the right to pursue a deficiency judgment pursuant to Section 9301.3(a), the Servicer should bid an amount at foreclosure sale that reserves the right to pursue deficiencies after the foreclosure sale on a case-by-case basis 4. If a third party enters a bid, the Servicer must bid, as applicable, an amount up to, but not exceeding, an amount equal to the lesser of: ■ 100% of the credit bid obtained from the Real Estate Valuation and Pricing tool ■ Total indebtedness, which includes the UPB, accrued interest, Escrow advances and expenses (see Exhibit 57A for the applicable expense limits) ■ Such other amount as may be required by applicable State law (e.g., amount of the judgment); or
Freddie Mac Guide 9301.8
301-49 ■ For the foreclosure sale of a property subject to resale restrictions that survive foreclosure or recordation of a deed-in-lieu of foreclosure, the property valuation and/or the restricted resale price As applicable, in the event that the minimum bid required by State law exceeds the credit bid but is less than total indebtedness or such other amount as may be required by State law, then the Servicer does not need to bid an amount more than the minimum bid required by State law. However, if the minimum bid required by State law exceeds the credit bid, total indebtedness, and such other amount as may be required by State law, or, for the foreclosure sale of a property subject to resale restrictions that survive foreclosure or recordation of a deed-in-lieu of foreclosure, exceeds the property valuation and/or restricted resale price, then the Servicer must follow the instructions in Section 9301.8(a). 5. Notwithstanding the requirements above, for the foreclosure sale of a property subject to with resale restrictions that survive foreclosure or recordation of a deed-in-lieu of foreclosure, the Servicer must refer to the applicable resale restrictions for details on the property valuation and/or the restricted resale price, as well as any other terms and conditions that must be met (e) Bidding instructions for Mortgages covered by mortgage insurance or subject to credit enhancements For a First Lien Mortgage covered by mortgage insurance, the Servicer must bid an amount approved by the MI. If the MI elects not to issue bidding instructions, or Freddie Mac has a delegation of authority from the MI for foreclosure sale bidding, the Servicer must follow the instructions in Section 9301.8(d). Notwithstanding the above, in the event the Mortgage has mortgage insurance and the MI’s bidding instructions or requirements include preserving deficiency rights, where permitted by applicable law, regardless if the MI has delegated authority to Freddie Mac for foreclosure sale bidding, the Servicer must preserve the MI’s right to pursue a deficiency action and should bid an amount at foreclosure sale that reserves the right to pursue deficiencies after the foreclosure sale on a case-by-case basis. For a Mortgage subject to a credit enhancement, the Servicer must bid an amount approved by the responsible party. (f) Bidding instructions for Mortgages insured by the FHA or guaranteed by the VA or RHS If the Mortgage is insured by the FHA or guaranteed by the VA or RHS, then the Servicer must follow FHA, VA or RHS guidelines for bidding instructions. If the Mortgage is a VA Mortgage, then the Servicer may not enter a bid on Freddie Mac’s behalf in excess of the upset price established by the VA. If the Servicer does not receive the VA upset price, the Servicer must contact Freddie Mac for instructions by submitting Form 105, Multipurpose Loan Servicing Transmittal, to Freddie Mac (see Directory 5).
Freddie Mac Guide 9301.8
301-50 (g) Bidding appropriately and pursuit of surplus proceeds or overbid funds The Servicer must bid at the foreclosure sale: ■ In accordance with the requirements in Sections 9301.8(a) through 9301.8(f), and ■ To preserve Freddie Mac’s rights to a deficiency according to the requirements in Sections 9301.6(a)(ii) through 9301.6(c) If the property is purchased by a third party at the foreclosure sale and there are any surplus proceeds or overbid funds, the Servicer must pursue and claim to retain the funds, so long as it is determined to be in Freddie Mac’s best interest, to the extent: ■ The funds will satisfy or reduce the total indebtedness under the terms of the Mortgage or such other amount as may be allowed by State law (e.g., amount and terms of the judgment) and the costs and expenses of the sale, if possible; and ■ It is permitted under applicable State law If the Servicer knows that additional attorney fees will be incurred when pursuing any surplus proceeds or overbid funds, and the Servicer believes it is in Freddie Mac’s best interest to pursue and claim to retain any surplus proceeds or overbid funds, the Servicer must submit a request for pre-approval (RPA) to Freddie Mac via PAID (Payments Automated Intelligent and Dynamic) (see Exhibit 88, Servicing Tools) to recommend incurring additional attorney fees. 9301.9 Reporting foreclosure sale results, managing remittance requirements for redemptions and confirmation date changes and third-party sale proceeds and expense reimbursements (10/08/25) This section contains information related to: ■ Reporting foreclosure sale results ■ Reporting and remittance requirements for redemptions and confirmation date changes ■ Third-party sale proceeds, reimbursement of expenses and reporting and remittance requirements ■ File retention for foreclosure proceedings
Freddie Mac Guide 9301.8
301-51 (a) Reporting foreclosure sale results Servicers must use the Resolve® user interface (UI) to report the results of a foreclosure sale to Freddie Mac. Servicers should refer to Resolve Online Help for details on the process and best practices to report the results of foreclosure sales. Servicers and any Users that use or access Resolve are bound by all of the provisions of the Master System License (see Section 2401.1) and the System-Specific License for Servicing Tools (see Section 2404.2). Each Servicer shall use Resolve in accordance with (A) the requirements in this section, (B) the instructions provided in Resolve Online Help and any other documentation and (C) any other applicable provisions of the Guide, including Sections 2401.1 and 2404.2. (i) Reporting requirements The Servicer must notify Freddie Mac of the results of all foreclosure sales, including REO and successful third-party bids. To notify Freddie Mac of the results of a foreclosure sale, the Servicer must complete the applicable data fields in the foreclosure sale reporting template, including, but not limited to: ■ The sale result ■ Foreclosure sale date ■ Total debt ■ Actual credit bid amount ■ Property occupancy status type ■ Attorney name and phone number ■ Servicer point of contact and phone number; and ■ Whether deficiency rights were preserved Servicers must upload the foreclosure sale reporting template in Resolve no later than the Business Day immediately following the date of the foreclosure sale. If the result of a foreclosure sale reported to Freddie Mac needs to be corrected or removed for reasons noted in Section 9301.10(a)(i), the Servicer must notify Freddie Mac by requesting a “rollback” pursuant to Section 9301.10. Once a foreclosure sale is held, a Servicer does not need to continue to report applicable information through EDR for the Mortgage. (See Section 9102.6 regarding monthly EDR transmissions.) (ii) Compensatory fee for failing to comply with reporting requirements
Freddie Mac Guide 9301.8
301-52 Failure to comply with the requirements of Section 9301.9(a) will result in the assessment of a compensatory fee to the Servicer of $100 per day for every day that the foreclosure sale is not reported correctly. If the results of the foreclosure sale are not reported correctly, Freddie Mac may exercise its remedies provided by the Guide and the other Purchase Documents. Refer to Chapter 3602 regarding repurchases, repurchase alternatives and other remedies. Freddie Mac will bill the Servicer for such compensatory fees on the Servicer Non- Performing Loans Invoice. Refer to Section 9102.1 for information on the payment of Servicing Non-Performing Loans Invoices via an Automated Clearing House draft. Servicers are not required to but may appeal a compensatory fee for late foreclosure sale reporting. Appeals must be submitted to Freddie Mac via the Freddie Mac Default Fee Appeal System. Freddie Mac considers the notification to be correctly reported when Freddie Mac has received and successfully processed the foreclosure sale/DIL submission without errors. (b) Reporting and remittance requirements for redemptions and confirmation date changes The Servicer must notify Freddie Mac if either the projected expiration of the redemption period changes, or the scheduled confirmation date changes from the date the Servicer notified Freddie Mac of the foreclosure sale/deed-in-lieu of foreclosure via Resolve®. The Servicer must report the change by submitting Form 105, Multipurpose Loan Servicing Transmittal, to Freddie Mac (see Directory 6) no later than one Business Day after the Servicer receives notification of the change. (i) Redemptions of REO properties ■ Reporting requirements for REO redemptions The Servicer must notify Freddie Mac that the REO property is redeemed no later than one Business Day after redemption by completing and submitting Form 105 to Freddie Mac (see Directory 6) for a 1-unit property or 2- to 4-unit properties. If Freddie Mac must execute any documents related to the redemption, the Servicer must send the documents with Form 105 to the appropriate address. ■ Remitting REO redemption proceeds – 1-unit and 2- to 4-unit properties If the property is redeemed, the Servicer must forward to Freddie Mac the principal and interest amount due (through the redemption date), as well as all amounts that are reimbursable by Freddie Mac pursuant to Chapter 9701 within five Business Days of receiving the redemption proceeds.
Freddie Mac Guide 9301.8
301-53 If included in the redemption proceeds, the Servicer may net out any amounts that are due to the Servicer from the Borrower but are not reimbursable by Freddie Mac (e.g., late fees, NSF fees, property inspections and other items permitted by applicable law); that is, so long as the redemption proceeds after any netting are sufficient to cover the amounts required to be forwarded to Freddie Mac. If the redemption proceeds are not sufficient to cover the amounts required to be forwarded to Freddie Mac, then the Servicer must remit the entire redemption proceeds to Freddie Mac. Checks should be made payable to the Federal Home Loan Mortgage Corporation and must reference the property address and the nine-digit Freddie Mac loan number on the check. Remittances should be forwarded to the appropriate business address below. Overnight mail or courier deliveries: JP Morgan Chase National Wholesale LockBox TX 1-0029 14800 Frye Road Fort Worth, TX 76155 Attn: Freddie Mac #730453 Wire proceeds: JP Morgan Chase Bank Benefit FHLMC 55 Water Street New York, NY 10041 ABA #021000021 FAO: Freddie Mac #9102418887 Submit the related expenses to Freddie Mac via PAID (Payments Automated Intelligent and Dynamic) (see Exhibit 88) System available at https://sf.freddiemac.com/working- with-us/servicing/resources. (ii) Reporting and remittance requirements for redemptions following third-party foreclosure sales The remittance requirements for redemptions following third-party foreclosure sales are the same as the remittance requirements for third-party foreclosure sales. If a Servicer receives redemption proceeds, the Servicer must remit the required principal and interest owed to Freddie Mac (as required in Section 8303.3(b)) no later than five Business Days after the Servicer receives the proceeds.