Freddie Mac Single-Family Seller/Servicer Guide 9209.6 — Closing, reporting and remittance requirements for deeds-in-lieu of foreclosure

Freddie Mac Single-Family Seller/Servicer Guide 9209.6 — Closing, reporting and remittance requirements for deeds-in-lieu of foreclosure

Effective 2025-12-17 · Freddie Mac's stamp for this section

This section contains requirements related to: ■ Reporting requirements and settlement data submissions ■ Remittance requirements ■ Other requirements (a) Reporting requirements and settlement data submissions 1. Report the deed execution in Resolve® within one Business Day of receiving the executed deed or lease 2. Forward to Freddie Mac within five Business Days of receiving the executed deed or lease: ■ The Borrower’s contribution, if applicable (see Directory 5) ■ For a leasehold Mortgage, a copy of the lease via e-mail (see Directory 6) ■ A copy of the signed personal property release via e-mail (see Directory 6) 3. Report the Mortgage to Freddie Mac via the Freddie Mac Loan Level Reporting tool (see Exhibit 88, Servicing Tools) as a Transfer to REO by the end of the Accounting Cycle in which the Servicer receives the executed deed or lease and ensure that the: ■ Ending gross UPB is the ending balance of the Mortgage ■ Principal due field is zero ■ REO acquisition date is the date the deed or lease was executed ■ DDLPI reflects the due date of the last fully paid installment If any of these data elements are incorrect, the Servicer should contact its investor reporting specialist or Customer Service at 800-FREDDIE. 4. Once the Servicer reports the Mortgage as a Transfer to REO through the Loan Level Reporting tool, Resolve will automatically settle the deed-in-lieu transaction. (b) Remittance requirements Remit any funds, including funds contributed by the Borrower, via wire transfer or check to Freddie Mac (see Directory 5) following completion of the reporting requirements in Section 9209.6(a)(3) but no later than six Business Days of receipt of the executed deed or lease. (c) Other requirements 1. Ensure that: ■ Clear and marketable title, or for a leasehold Mortgage, a marketable real estate leasehold interest is conveyed to Freddie Mac; issuance or purchase of a letter of indemnity, title insurance or similar form of indemnification does not constitute, and may not be used in lieu of, provision of clear and marketable title to the Mortgaged Premises ■ The deed or lease is submitted for recordation within five Business Days of the Servicer’s receipt of the executed deed or lease ■ The recorded deed or lease is e-mailed to Freddie Mac (see Directory 6) within one Business Day after the Servicer receives it from the recorder’s office ■ The recorded deed or lease and all other required deed-in-lieu of foreclosure documents (including the personal property release) are maintained in the Mortgage file and available to Freddie Mac upon request 2. Request reimbursement for any applicable expenses, in accordance with Chapter 9701. For expenses incurred on Mortgages insured by the FHA or guaranteed by the VA or RHS not subject to recourse or indemnification, expense reimbursement will occur after Freddie Mac receives the claim payment from the applicable entity and determines that all other requirements for reimbursement have been satisfied. (Refer to Section 9603.2(a) on FHA/VA/RHS claim filing and Section 9603.2(d) on receipt of claim payment.) 3. Release the First Lien within the time frame required by the applicable State or local law after the delivery of the deed or lease of the Mortgaged Premises. If local or State law does not require release within a specified time frame, the Servicer must submit the lien release for recordation within 30 Business Days of the receipt of the deed or lease and Mortgaged Premises. 4. Report the acquisition of the property to the Internal Revenue Service (IRS) in accordance with the requirements in Section 8106.2(b) on IRS Form 1099-A, Acquisition or Abandonment of Secured Property 5. Release of deficiency if participants have acted in good faith and in compliance with all applicable law. If the Borrower has acted in good faith and in compliance with the Guide and all applicable local, State and federal laws, then Freddie Mac will not pursue the Borrower for the entire amount owed under the current Mortgage. Freddie Mac will accept the deed or lease and the cash contribution by the Borrower, and the Servicer must release the lien on the Mortgaged Premises and mark the previous Note as canceled. For a deed-in-lieu of foreclosure completed with respect to an eMortgage (as defined in Section 1402.1(b)), the Servicer must also comply with the requirements in Section 1402.5(c)(iii). However, if the Borrower had knowledge of and/or consented to a transaction that was not in compliance with the Guide and all applicable local, State and federal laws, Freddie Mac reserves its rights to pursue any and all participants, including, but not limited to the Borrower, for the full amount owed under the Mortgage, the amount of any other loss or damage Freddie Mac may have suffered and other costs and expenses, including, but not limited to, attorneys’ fees. 6. If the Mortgage is covered by mortgage insurance and the MI has not provided a delegation of authority to the Servicer or Freddie Mac, fax a copy of the approval from the MI to Freddie Mac (see Directory 5) within two Business Days of the Servicer’s receipt of the MI’s approval 7. For Cooperative Share Loans, comply with the requirements in Section 8801.3(d)

Source: Freddie Mac Single-Family Seller/Servicer Guide 9209.6 — Closing, reporting and remittance requirements for deeds-in-lieu of foreclosure · source URL · snapshot 4c94f67729042dd6