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What happens after I complete an application to determine my options to avoid foreclosure?

It depends on your situation, but there are steps your servicer must usually take to evaluate your application.

Make sure your servicer receives your complete application more than 37 days before your scheduled foreclosure sale.

Warning: Under CFPB rules, if your servicer doesn’t receive your complete application more than 37 days before your foreclosure sale, your servicer doesn't necessarily have to review your application. However, depending on what type of mortgage you have, your servicer might have to consider your application under other rules. For example, if you’re applying for relief under the National Mortgage Settlement, the process may give you additional protections.

Your servicer’s response
If your servicer receives your complete application more than 37 days before your scheduled foreclosure sale, you should hear back from your servicer in writing within 30 days. Your servicer may respond to your complete application in three ways:

  • Your servicer may offer you a loss mitigation option. It will also tell you how long you have to accept the offer. This may depend on how long before your scheduled foreclosure sale you completed your application.
  • Your servicer may deny you loss mitigation. If your servicer denies your application for a loan modification it has to tell you exactly why you were denied. If your servicer receives your complete application for loss mitigation at least 90 days before a scheduled foreclosure sale, you may also have a right to appeal  if you were denied a loan modification.
  • Your servicer may ask for additional documentation or information. If your servicer does this, you should give the servicer what it asks for as soon as possible to make sure you have all possible foreclosure protections.

Except in rare cases, your servicer can’t start the foreclosure process until at least 120 days after you become delinquent on your loan.  After that, if you aren’t eligible for loss mitigation, or chose not to accept the servicer’s loss mitigation offer, the servicer will usually begin the foreclosure process. The time between the start of foreclosure and the actual foreclosure sale depends on the laws in your state.

Use this checklist for more information on how to avoid foreclosure.

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