About Delinquency and Foreclosure at Freedom Mortgage

Do you have questions about mortgage delinquency and foreclosure?

If you are having trouble making your payments to Freedom Mortgage, please call us at 855-690-5900. We have programs that may help you depending on your loan type and individual circumstances. We’re here to help!

What Is Mortgage Delinquency?

Delinquency can begin when your mortgage payment is more than 30 days past due. If you’re having trouble making your mortgage payments, contact us right away. We have loss mitigation programs that may help you manage the delinquency.

Property Inspections During Mortgage Delinquency

When a mortgage becomes delinquent, we’ll typically conduct property inspections to determine if the property is occupied and has been appropriately maintained.

Will You Be Charged for Delinquent Inspections?

Delinquent inspection charges may be added to your total mortgage debt based on mortgage documents and state or local government statutes.

Who Determines the Allowable Costs for a Delinquent Property Inspection?

Allowable costs are primarily determined by the entity that owns or guarantees the mortgage, such as the U.S. Department of Housing and Urban Development (HUD), Fannie Mae, Freddie Mac, the VA, or the USDA and can be superseded by state or local government statutes.

How Many Days Delinquent Must a Loan Be for a Delinquency Inspection to Occur?

The day count varies from each entity that owns or guarantees the mortgage. Based on payment status and contact, inspections may be ordered when a loan reaches between 45 and 90 days delinquent. Additionally, all loan types require a delinquency inspection every 25 to 35 days after that.

What Is Mortgage Foreclosure?

A loan is typically referred to foreclosure when it becomes 120 days delinquent unless it is being evaluated for a loan modification or other foreclosure prevention programs.

What Are the Different Types of Foreclosure?

Depending on the state, the common types of foreclosure are judicial and non-judicial. A judicial foreclosure is processed through the court system. Non-judicial foreclosures are conducted through a trustee without the court’s involvement.

Once a foreclosure has commenced, there may be additional attorney or trustee fees and costs due, which would be added to the loan balance as allowed by your loan documents and/or state or local government statutes. Foreclosure timelines leading up to sale vary by state.

What Should I Do If My Loan Is Scheduled for Foreclosure?

If you’re in foreclosure proceedings, or your home is scheduled for a foreclosure sale, contact us immediately, so we can discuss your available options at 855-690-5900.

You may obtain a list of HUD-approved, non-profit homeowners’ counseling organizations that serve your residential area by calling 800-569-4287 (toll free) or by visiting hud.gov.

What Are the Benefits of Accepting a Loss Mitigation Plan While in the Stages of Early Delinquency?

Early communication and participation in a loss mitigation plan often provides the best chance of keeping the loan in good standing and avoiding foreclosure altogether.

Actively communicating with Freedom Mortgage and pursuing a workout plan to resolve delinquencies could help you avoid:

• Eviction and possibly losing any equity you may have in your home
• Negative credit reporting
• Additional default-related costs
• Possibly owing a deficiency balance after the foreclosure sale

Can I Still Sell My Property While in Foreclosure?

Yes—you can often still sell your home while it’s in foreclosure, but timing is critical. The exact deadlines and procedures vary by state.

If you wish to sell your property, you’ll also need to provide:

• Copy of the Listing Agreement
• Copy of the Sales Contract, if available
• Copy of the Estimated Settlement Statement, if available
• A signed Third-Party Authorization Form

What Is Mortgage Reinstatement?

Reinstatement is when you make a lump-sum payment that brings your account current.

How Can You Request a Payoff or Reinstatement Quote?

You can request a reinstatement quote from Freedom Mortgage through our mobile app or by calling us at 855-690-5900. Quotes can be mailed, emailed, or faxed.

Why Is Your Reinstatement Quote More Than Your Past Due Payments?

As a result of default, there may be additional charges and fees that you must pay to fully reinstate your loan. These charges may include inspections, attorney fees and costs if your loan has been referred to foreclosure, and other default-related charges.

Need Help Making Your Mortgage Payments?

If you’re having trouble making your mortgage payments, contact us right away. We have loss mitigation programs that may help you manage the delinquency.