What is a foreclosure alternative?
Foreclosure alternatives include repayment plans, forbearance, payment deferral, loan modification, short sale, and deed‑in‑lieu. Freddie Mac requires servicers to explore all alternatives before initiating foreclosure to help borrowers retain homeownership whenever possible.
Related FAQs
- Can foreclosure be paused?
- What is a pre‑foreclosure review?
- Why do servicers evaluate borrower capacity during delinquency?
- What is a loss mitigation plan?
- Why does Freddie Mac require servicers to document borrower communication?
- What is early delinquency intervention?
- Can delinquency be resolved without formal assistance?
- What is a delinquency notice?
- Why do servicers ask about hardship reasons during delinquency?
- How does delinquency affect credit?
- What is a deed-in-lieu of foreclosure?
- What is a short sale?
- Can foreclosure be avoided?
- What is a repayment plan?
- What happens when a loan becomes delinquent?
- What is reinstatement?
- Can delinquency be resolved without long-term consequences?
- How soon does the servicer contact borrowers after a missed payment?