Freddie Mac Single-Family Seller/Servicer Guide §9301.11 — State foreclosure timelines and performance (12/17/25)
Freddie Mac Guide §9301.11 (State foreclosure timelines and performance). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §9301.11 — State foreclosure timelines and performance (12/17/25) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Freddie Mac Guide 9301.11
(12/17/25) This section contains requirements related to: ■ State foreclosure timelines ■ Allowable delays in completing a foreclosure ■ State foreclosure timeline performance assessment (a) State foreclosure timelines A foreclosure timeline is the time it takes to process a foreclosure. The timeline is measured in days from the DDLPI to the date of the foreclosure sale. Therefore, the timeline consists of the time it should take from the DDLPI to the date the Mortgage is referred to foreclosure counsel (see Sections 9301.2(a) through 9301.2(d)), plus the time it takes from the referral date of foreclosure to the foreclosure sale date. The timeline does not include any post-sale redemption or confirmation periods. Freddie Mac has a timeline for each State which is the number of days it should take to process a foreclosure in the State under most circumstances. For conventional Mortgages, the Servicer must complete the foreclosure sale within the foreclosure timeline (from DDLPI to foreclosure sale) for the State in which the property is located, as listed in Exhibit 83, Freddie Mac State Foreclosure Timelines. The Servicer must
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301-63 comply with FHA, VA and RHS timelines for all Mortgages insured by the FHA or guaranteed by the VA or RHS. If the foreclosure sale was delayed due to one of the allowable State foreclosure timeline delays listed in Section 9301.11(b), the timeline from DDLPI to the foreclosure sale date will be increased to account for the allowable delay based on the information the Servicer reports to Freddie Mac via EDR. Refer to Exhibit 83A, Determining State Foreclosure Timeline Compensatory Fees, for details on how Freddie Mac determines the additional time to be granted for allowable delays. The Servicer must have procedures and processes in place to manage its State foreclosure timeline performance. To assist with monitoring performance, the Servicer may access reports, accessible via the “Foreclosures” tile of the Servicer’s Servicer Performance Profile (SPP) (see Exhibit 88, Servicing Tools), on foreclosure sales completed. The reports in the SPP will be based on information and data the Servicer reported to Freddie Mac. Servicers should review the reports regularly to ensure the information and data they reported was complete and accurate. Reduction in timelines At any time and in its sole discretion, Freddie Mac may reduce a State’s foreclosure timeline set forth in Exhibit 83 and further, may subject loans to revised timelines and associated compensatory fee calculations that were referred to foreclosure as of the effective date of the reduced timeline. (b) Allowable delays in completing a foreclosure Exhibit 83, Freddie Mac State Foreclosure Timelines, sets forth Freddie Mac’s foreclosure timeline for each State. Freddie Mac’s State foreclosure timeline (DDLPI to foreclosure sale) will be extended for a Mortgage under the following circumstances, provided the Servicer complies with the applicable EDR requirements (refer to Section 9102.6 for information on EDR reporting requirements): ■ When a Borrower files for bankruptcy protection ■ Delays due to probate, military indulgence and contested foreclosures ■ Delays caused by the Borrower being offered or entering into a Freddie Mac Flex Modification Trial Period plan but failing to comply with the terms of the plan ■ Delays caused by the Borrower entering into an unemployment forbearance plan ■ Delays caused by the Borrower exercising his or her right to appeal a modification denial, pursuant to Section 9101.2
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301-64 Refer to Exhibit 83A, Determining State Foreclosure Timeline Performance Compensatory Fees, for information on how Freddie Mac calculates the additional time granted for each of the allowable delays listed above. Moreover, a Servicer may delay completing the foreclosure, if necessary, when the delay is required due to: ■ Applicable federal, State or local law, but only if the delay was necessary or inevitable despite the Servicer’s best efforts to incorporate such laws into its foreclosure procedures and timelines ■ Emergency, exigent or unusual circumstances that do not occur in the regular course of business and that are both unforeseeable and outside the control of the Servicer (this includes delays resulting from Eligible Disasters, pursuant to Section 8404.1(d)) ■ The Servicer waiting for instructions from Freddie Mac on how to proceed with a distressed property (see Section 8403.1(a) and (b) for an explanation of a distressed property) ■ The Servicer being unable to complete the foreclosure sale due to the Borrower being approved for, or performing under, the terms of an alternative to foreclosure ■ The Borrower’s approval for a Freddie Mac Standard Short Sale or Freddie Mac Standard Deed-in-Lieu of Foreclosure being based on a review of a First Complete Borrower Response Package, pursuant to Section 9101.3 ■ The Borrower being conditionally approved for mortgage assistance under the State Housing Finance Agency program in accordance with Section 9211.1 Regardless of a delay for any of the above reasons, the Servicer’s State foreclosure timeline performance will be measured against Freddie Mac’s State foreclosure timeline and compensatory fees. The Servicer may appeal the decision and must provide to Freddie Mac at the time of appeal any and all information and documentation supporting the claim that the delay was necessary and required. (c) State foreclosure timeline performance assessment For Mortgages that resulted in a foreclosure sale on or after January 1, 2019: (i) Determination of State foreclosure timeline performance Freddie Mac will evaluate the Servicer’s State foreclosure timeline performance on a calendar year basis. Based on all foreclosures the Servicer completes in the year being evaluated, Freddie Mac will determine a Servicer’s State foreclosure timeline performance for each Mortgage that went to foreclosure sale in the year being evaluated on a national basis.
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301-65 Freddie Mac will determine how long it took the Servicer to complete each foreclosure sale based on the information that the Servicer reports to Freddie Mac via the monthly EDR submissions and the foreclosure sale transmission after the completion of the foreclosure sale. Freddie Mac will calculate the amount of compensatory fees, if any, in addition to any actual losses, costs or damages caused by Servicer non-compliance with the Guide, including State foreclosure timeline requirements. To determine the Servicer’s overall State foreclosure timeline performance, Freddie Mac will complete the following steps: Step 1 – Calculating actual foreclosure timeline performance for each Mortgage: Freddie Mac will determine how many days it took the Servicer to complete each foreclosure sale during the calendar year and whether the number of days exceeded or were managed under the applicable State foreclosure timeline standard as listed in Exhibit 83, Freddie Mac State Foreclosure Timelines. Freddie Mac will then calculate the compensatory fee amount for each individual foreclosure sale to determine whether each Mortgage will result in a compensatory fee or credit. The amounts calculated in this step on an individual foreclosure sale basis will be negative (a credit) for those foreclosure sales that were managed under that State’s foreclosure timeline and will be positive (a compensatory fee) for those foreclosure sales that exceeded that State’s foreclosure timeline. Step 2 – Calculating the aggregate compensatory fee on a national basis: Freddie Mac will calculate the Servicer’s aggregate State foreclosure timeline compensatory fee amount by netting the compensatory fees and credits determined in Step 1 for all foreclosure sales that were completed in the calendar year. Step 3 – Determining whether to assess a compensatory fee: If the Servicer’s aggregate compensatory fee calculated in Step 2 is $300,000 or less, then no compensatory fee will be assessed. However, if the Servicer’s aggregate compensatory fee calculated in Step 2 is greater than $300,000, and the Servicer is not otherwise exempt under Section 9301.11(c)(ii), a compensatory fee will be assessed. Refer to Exhibit 83A, Determining State Foreclosure Timeline Performance Compensatory Fees, for additional details regarding how Freddie Mac calculates compensatory fees. The State foreclosure timelines used in determining the Servicer’s performance will be adjusted for the period of time for which the foreclosures were delayed due to any of the allowable delays in Section 9301.11(b), provided the Servicer complied with the applicable EDR requirement and/or the appeals process in Section 9301.11(c)(iii).
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301-66 (ii) Compensatory fee process If the Servicer’s performance exceeded Freddie Mac’s State foreclosure timeline requirements as outlined in Section 9301.10(c)(i), then the compensatory fee process is as follows: ■ Step 1: Freddie Mac will automatically waive a Servicer’s potential State foreclosure timeline compensatory fees if its exposure amount is $300,000 or less for that calendar year. This is considered the de minimis billing exception. (Note: $300,000 = previous monthly de minimis threshold of $25,000 x 12 months.) ■ Step 2: For those Servicers that did not receive a waiver under Step 1, Freddie Mac will calculate the Servicer’s overall Servicer Success Scorecard ranking for that calendar year against the respective rank group the Servicer belongs to on December 31 of that calendar year (see Section 3501.2(b) regarding Servicer performance results). If a Servicer’s overall ranking for that year is in the top 75% of its rank group on December 31 (i.e., not in the bottom 25% of that rank group), its State foreclosure timeline compensatory fees will automatically be waived. Note: This step does not apply to a Servicer where an overall ranking is not provided, whether because no Servicers in that Servicer’s rank group are provided an overall ranking or the individual Servicer did not receive an overall ranking within its rank group. Additional information on rankings and the Servicer Success Scorecard is available through Freddie Mac Gateway®. ■ Step 3: If a Servicer remains subject to the assessment of State foreclosure timeline compensatory fees after steps 1 and 2, the Servicer may be placed into a performance monitoring plan. If the Servicer is placed into a performance monitoring plan, the assessment of its compensatory fee exposure balance will be suspended until Freddie Mac determines whether the Servicer met the terms of the plan. If Freddie Mac determines that a Servicer complied with the required terms of the plan, its State foreclosure timeline compensatory fee assessment will be waived automatically. If the Servicer is not eligible for a performance monitoring plan, the Servicer will be assessed its compensatory fee exposure balance. ■ Step 4: If a Servicer still remains subject to the assessment of State foreclosure timeline compensatory fees after steps 1 through 3, the Servicer will be assessed its compensatory fee exposure balance if not previously assessed. The Servicer will have 90 days to submit any loan-level appeals in accordance with Section 9301.11(c)(iii). If after the appeals process is completed a Servicer continues to have a compensatory fee exposure balance of greater than $300,000, then the Servicer will be billed for such fees in accordance with Section 9301.11(c)(iv).
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301-67 (iii)Servicer appeal process for State foreclosure timeline compensatory fees The Servicer may appeal a pending compensatory fee prior to Freddie Mac billing the compensatory fee. The calendar year’s estimated State foreclosure timeline compensatory fees will be available in the Foreclosure Timeline Compensatory Fees Overview report, accessible via the “Foreclosures” tile of the Servicer’s Servicer Performance Profile (SPP) (see Exhibit 88, Servicing Tools). This report will be updated monthly, on the fifth Business Day of each month to reflect the year-to-date State foreclosure timeline performance through the end of the prior month. Servicers are not required to submit appeals and it is recommended that Servicers do not submit any appeals until all steps outlined in Section 9301.11(c)(ii) have been completed and the Servicer has been notified that the compensatory fees are now assessed and subject to billing. Servicers must submit, in their original appeal, a description of all delays along with all related documentation. Any information that is received after the original appeal is submitted will not be considered. The Servicer has 90 days to submit an appeal to Freddie Mac using the Freddie Mac Default Fee Appeal System (which can be accessed through Freddie Mac Gateway). (iv) Billing process for compensatory fees Compensatory fees to be billed will appear on the Servicer’s Monthly Non-Performing Loans Billing Statement in the first monthly cycle after the date in which all appeals have been submitted to, and decisioned by, Freddie Mac. Refer to Section 9102.1 for information on the payment of Servicing Non-Performing Loans Invoices via an Automated Clearing House draft.
Freddie Mac Guide 9301.11
Bankruptcy overview, general requirements and Freddie Mac’s rights (09/10/25) This section contains information related to: ■ Bankruptcy ■ Freddie Mac’s rights ■ Bankruptcy general requirements (a) Bankruptcy This chapter provides Servicers with Freddie Mac’s requirements for Servicing Mortgages subject to bankruptcy proceedings or litigation. The Servicer must take appropriate action to protect Freddie Mac’s interest during bankruptcy proceedings in which the Borrower is the debtor. Note: Refer to Chapter 9402 for requirements for Servicing Mortgages subject to other litigation. (b) Freddie Mac’s rights In addition to any other remedies it may have at law or in equity, Freddie Mac reserves the right, at its sole discretion, to: 1. Require the Servicer to submit copies of any and all records related to Freddie Mac’s Mortgages 2. Require the Servicer to compensate Freddie Mac and hold Freddie Mac harmless for any loss, damage or expense that result from the Servicer’s failure to comply with the provisions in this chapter, Chapters 8402 and 8403, Sections 9402.1(a) and 8601.7(a) or that result from errors, omissions or delays by the Servicer or the Servicer’s agent, including without limitation to: ■ Previously paid incentives ■ Expense reimbursements ■ Court costs and ■ Attorney fees
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401-2 3. Use or require the Servicer to use Freddie Mac’s counsel or trustee for any Freddie Mac Default Legal Matter 4. Limit the amount of a reimbursement for attorney fees if those fees exceed the limits in: ■ Exhibit 57B, Approved Bankruptcy Attorney Fees, or ■ Fees commonly charged for similar services in the area where the affected property is located 5. Limit the amount of a reimbursement for preservation and maintenance expenses if those expenses exceed the limits in Exhibit 57, 1- to 4-Unit Property Approved Expense Amounts 6. If the Servicer does not obtain Freddie Mac’s prior written approval as required, deny the Servicer’s request for reimbursement of expenses incurred as a result of Servicing Freddie Mac’s Mortgages under the requirements of this chapter and Chapter 8402 7. If the Servicer fails to comply with the requirements contained in this chapter, Chapters 8402 and 8403 and Sections 9402.1(a) and 8601.7(a): ■ Assess compensatory and other fees ■ Exercise any remedies provided by the Guide and the other Purchase Documents Refer to Chapter 3602 regarding repurchases, repurchase alternatives and other remedies. (c) Bankruptcy general requirements When the Servicer receives notice or confirms information that a Borrower has filed a bankruptcy petition, at a minimum, the Servicer must: 1. Comply with all applicable laws and regulations, including working with the debtor’s pre-bankruptcy credit counseling agency on a debt management plan, if applicable 2. Obtain a copy of the Borrower’s (debtor’s) bankruptcy petition or other bankruptcy notice 3. Accurately complete and file a proof of claim, including all required proof of claim forms, within the time limitations set by the bankruptcy court. This may include but is not limited to providing: ■ Timely information ■ Documentation (e.g., Borrower payment history) and
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401-3 ■ Payoff and reinstatement figures necessary for bankruptcy counsel to meet the time limits set by the bankruptcy court if counsel is representing the Servicer in the case If additional costs are incurred after confirmation of the bankruptcy plan, the Servicer must work with the trustee to ensure all steps are taken to recover those costs allowable by applicable law from the debtor through the plan, if applicable. The Servicer must, prior to filing any proof of claim or motion for relief from the stay with respect to a Mortgage registered on the MERS® System, prepare and execute (using the Servicer’s employee who is a MERS authorized “signing officer”) an assignment of the Security Instrument from MERS to the Servicer. The Servicer must record the prepared assignment where required by State law. State mandated recordings are non-reimbursable by Freddie Mac, are not considered part of the Freddie Mac allowable foreclosure counsel fees and must not be billed to the Borrower. 4. Monitor the bankruptcy filing and obtain status of the proceedings from the trustee in a timely manner. This includes, at a minimum, assisting with any motions for relief of stay and monitoring the first meeting of creditors, proof of claim and/or confirmation of the bankruptcy plan, pre- and post-petition payments, pleadings and notices. If counsel requests additional documentation and/or information from the Servicer at any time, the Servicer must provide such requested information and/or documents within three Business Days after receipt of the request, or within such earlier time frame if necessary, to comply with timing requirements under applicable law or court orders and procedures. 5. Maintain copies of all relevant documents related to the bankruptcy, including the notice of first meeting of creditors, proof of claim, pleadings, notices, etc. 6. Determine whether the Borrower wishes to keep the property 7. Not require the Borrower to sign a reaffirmation of debt agreement. If the Servicer chooses to have the Borrower reaffirm the debt, the Servicer must comply with all applicable laws, including obtaining the court’s approval of the reaffirmation agreement, if necessary. Freddie Mac will not reimburse the Servicer for any legal costs incurred in obtaining a reaffirmation agreement. 8. Review any bankruptcy reorganization plan proposed under Chapters 11 or 13 of the U.S. Bankruptcy Code (refer to Section 9401.2(e) regarding the Servicer’s Servicing responsibilities should a bankruptcy judge order a bankruptcy cramdown) and respond in a manner that protects Freddie Mac’s interests. Likewise, the Servicer must review any bankruptcy plan proposed under Chapter 12 of the U.S. Bankruptcy Code and respond in a manner that protects Freddie Mac’s interests. Such review includes verifying that the bankruptcy repayment plan does not extend past the maturity date of the Mortgage and sets forth the proper monthly payment to include the outstanding debt and sufficient funds to pay property taxes and all property insurance and mortgage insurance premiums when they become due. If the bankruptcy repayment plan will extend past the maturity date of the Mortgage, the Servicer must object.
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401-4 9. If appropriate, file an action with the bankruptcy court to secure a determination that the property is abandoned. In the event the court considers the property abandoned, the Servicer must file an order lifting the automatic stay. 10. Monitor and properly apply payments received under any bankruptcy repayment plan. If the Borrower becomes delinquent in his or her payments under a bankruptcy repayment plan, pursuant to Sections 9401.2(c) and 9401.2(d), as applicable, the Servicer must instruct counsel to take immediate action to modify the stay order and initiate or resume foreclosure proceedings. 11. Conduct a monthly inspection of the property for any delinquent Mortgage unless a bankruptcy repayment plan is in place and being adhered to 12. Verify that the Borrower is current on his or her property taxes and property and mortgage insurance premiums, as applicable. If there is an Escrow account, the Servicer must perform an Escrow analysis to determine if a bankruptcy repayment plan must include additional Escrow Funds to maintain the Escrow account. In addition, the Servicer must perform a periodic Escrow analysis and notify the trustee of any change to the payment amount resulting from the analysis. 13. Immediately notify the trustee of any Transfer of Servicing. (Both the Transferor Servicer and Transferee Servicer must notify the trustee.) See Chapter 7101 for specific requirements for Transfers of Servicing, including Concurrent Transfers of Servicing and Subsequent Transfers of Servicing. 14. For leasehold Mortgages: ■ If termination of the lease will impair Freddie Mac’s lien position or interest in the property, take appropriate action to assume the lease payments to the lessor if the lease is rejected by the Chapter 7 trustee in bankruptcy and the Borrower ceases making payments required under the terms of the lease (i.e., ground rents) ■ Object to any Chapter 13 plan that does not provide for payment of ground rents 15. In cases when the trustee will pay post-petition payments, it is the Servicer’s responsibility to notify the trustee of all changes, including any missed post-petition payment, and to send copies of breach/acceleration letters to the trustee 16. Immediately upon release of bankruptcy, if the Mortgage is delinquent, the Servicer must either: ■ Resume foreclosure activities if the Mortgage was in foreclosure previous to the bankruptcy filing, in accordance with Chapter 9301, or ■ Initiate or resume collection activity in accordance with Chapter 9102