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Pre-Foreclosure Sale– Agency Action

Single family house.

When a Pre-Foreclosure sale occurs, Agency staff must receive copies of the following documents to process servicer’s loss claim filing:

HUD 1 settlement statement
Sales contract/agreement
BPO/Appraisal used for property valuation
SFHGLP Servicing Plan with Agency approval
Letter from borrower outlining failure to pay or hardship

The Agency will not pay costs related to the property that are incurred after the DIL conveyance date. After the DIL conveyance date (when the property is conveyed back to the lender), the Agency will pay costs incurred during the marketing period.

When a Pre-Foreclosure Sale occurs, Agency staff must receive the following documentation associated with the pre-foreclosure sale settlement in order to process the servicer’s loss claim filing:

Copy of the final HUD 1 settlement statement
Copy of the sales contract/agreement
Copy of the BPO/Appraisal used for property valuation
Copy of the SFHGLP Servicing Plan with the authorized approval from the Agency
Copy of the Letter from borrower outlining failure to pay or financial hardship