Freddie Mac Single-Family Seller/Servicer Guide §9301.5 — First legal action and expedited foreclosure (09/10/25)
Freddie Mac Guide §9301.5 (First legal action and expedited foreclosure). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §9301.5 — First legal action and expedited foreclosure (09/10/25) — 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 9301.5
(09/10/25) This section contains information related to: ■ First legal action in the foreclosure and expedited process for vacant or abandoned properties ■ Expedited foreclosures ■ Expedited foreclosures – Florida ■ Expedited foreclosures – Illinois ■ Expedited foreclosures – New York (a) First legal action in the foreclosure and expedited process for vacant or abandoned properties (i) What is the first legal action in the foreclosure process? The first legal action is the first public action required in the jurisdiction where the property is located to commence the foreclosure process. The first legal action may include: ■ For judicial foreclosures, a complaint, petition, order to docket or notice of hearing
Freddie Mac Guide 9301.5
301-28 ■ For non-judicial foreclosures, recording a notice of default or publication of a notice of sale ■ For foreclosures other than judicial and non-judicial foreclosures, if any, the earliest document that establishes, sets or schedules a date for a foreclosure sale This first legal action must take place after the referral to foreclosure. Refer to the following Sections for more information: Additional information supporting first legal action in the foreclosure process Topic Guide location Referral to foreclosure Section 9301.2(b) When to refer a Mortgage to foreclosure – Primary Residence Section 9301.2(c) When to refer a Mortgage to foreclosure for a non-Primary Residence Section 9301.2(d) Referral to foreclosure documentation requirements Section 9301.2(f) (ii) Expedited foreclosure if property is vacant or abandoned Some jurisdictions permit an expedited or alternative foreclosure process if the Mortgaged Premises is vacant or abandoned. If the Servicer decides it is in Freddie Mac’s best interest to pursue an expedited foreclosure as a result of the occupancy status of the Mortgaged Premises, then the Servicer may proceed with an expedited foreclosure. Requesting additional attorney fees If the Servicer believes that pursuing an expedited foreclosure is in Freddie Mac’s best interest and knows that additional attorney fees will be incurred when processing this expedited foreclosure, the Servicer must submit a request for pre-approval to Freddie Mac via PAID (Payments Automated Intelligent and Dynamic) (see Exhibit 88, Servicing Tools) to recommend incurring additional attorney fees to complete the expedited foreclosure. The Servicer must send the recommendation to Freddie Mac before the Servicer incurs additional fees; otherwise, Freddie Mac will not reimburse for those fees. Under no circumstances should the Servicer delay initiating foreclosure to obtain Freddie Mac’s approval to pursue an expedited foreclosure. (b) Expedited foreclosures Servicers must always consider how to resolve a Freddie Mac Default Legal Matter in a way that obtains the best result for Freddie Mac and in a legally-compliant manner. While
Freddie Mac Guide 9301.5
301-29 Servicers are not required to use expedited methods identified in this chapter, if a Servicer does proceed with an expedited method, it must adhere to the requirements set forth in this chapter. This chapter provides requirements for expediting Freddie Mac Default Legal Matters, such as: ■ Waiving Freddie Mac’s right to pursue deficiency actions against a Borrower ■ Expediting the foreclosure if the property is identified as vacant/abandoned ■ Obtaining default judgment for an amount less than total amount owed by the Borrower ■ State-specific methods for expediting Freddie Mac Default Legal Matters (c) Expedited foreclosures – Florida (i) Determining the judgment method In the State of Florida, Servicers may obtain judgment in connection with a foreclosure in several ways, including the following: ■ Motion for summary judgment ■ Bulk trial foreclosures ■ Order to show cause ■ Obtaining judgment for less than the total indebtedness as described in Section 9301.6(a)(i) Foreclosure timeline requirements set forth in Section 9301.11(a) will not be waived regardless of the procedure the Servicer follows when foreclosing the Mortgage. (ii) Motion for summary judgment Servicers may move for summary judgment against the Borrower using the expense limits set forth in Exhibit 57A, Approved Attorney, Foreclosure, Mediation, Postponement Fees and Title Expenses. (iii)Bulk trial foreclosures Servicers may utilize bulk trial foreclosures to accelerate foreclosures. This option can be used for Freddie Mac Default Legal Matters that were: ■ Referred to law firms on or after June 1, 2013 or
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301-30 ■ Referred to law firms before June 1, 2013 and for which the foreclosure complaint has been filed, but final judgment of foreclosure has not yet been entered Servicers and their counsel must use their discretion to determine whether the bulk trial foreclosure process is appropriate for the jurisdiction, the Mortgage and the Mortgaged Premises that is the subject of the foreclosure. Reimbursement of expenses Pursuant to Section 9701.3(a), Freddie Mac will reimburse Servicers for approved attorney fees as set forth in Exhibit 57A. Servicers must submit expenses for additional attorney fees associated with the use of the bulk trial foreclosure process through PAID (see Exhibit 88, Servicing Tools). Freddie Mac will reimburse up to a maximum of $1,750, including legal fees for all necessary work to complete bulk trial foreclosures, including, but not limited to: ■ Identification of bulk trial foreclosure candidates ■ Pre-trial preparation and correspondence ■ Preparation of trial orders ■ Witness preparation ■ All necessary court appearances This fee is in addition to the foreclosure attorney fee. Servicers must use expense code 010009 (Bulk Trial Foreclosure/Inquest Process) when submitting an expense in PAID (see Exhibit 88, Servicing Tools) for the additional trial fees associated with the bulk trial foreclosure process. Legal expenses paid by the Servicer must match or exceed the reimbursement request. (iv) Order to show cause Servicers may foreclose using motions for order to show cause against the Borrower subject to the expense limits set forth in Exhibit 57A. (v) Default judgment Servicers may move for default judgment against the Borrower in accordance with Sections 9301.6(a)(i) and 9301.6(a)(ii). (d) Expedited foreclosures – Illinois
Freddie Mac Guide 9301.5
301-31 In Illinois, Servicers may obtain a consent judgment from a Borrower and take title to the Mortgaged Premises on behalf of Freddie Mac instead of selling the Mortgaged Premises at foreclosure sale. Servicers must comply with the requirements in Section 9301.1(b) and applicable law prior to obtaining a consent judgment pursuant to this section. Servicers may also offer a relocation incentive to a qualified Borrower as described in this section. (i) General requirements ■ The Mortgaged Premises must be located in Illinois ■ Servicers may seek reimbursement from Freddie Mac, subject to the expense limits set forth in Exhibit 57A, Approved Attorney, Foreclosure, Mediation, Postponement Fees and Title Expenses ■ Payments from Freddie Mac or the Borrower to subordinate lienholders, if any, are not permitted. Most subordinate liens will be extinguished by operation of law once the consent judgment is final. (ii) Relocation incentive requirements The Servicer may pay a relocation incentive of up to $3,000 to the Borrower in a manner similar to the relocation assistance for completion of a Freddie Mac Deed-in-Lieu of Foreclosure (“deed-in-lieu of foreclosure”) if the Borrower occupies the Mortgaged Premises as his or her Primary Residence at the time the Borrower consents to judgment provided that: 1. If the Borrower receives relocation assistance from a source other than Freddie Mac or the Servicer, such as an employer, the Servicer must reduce the amount of Freddie Mac’s relocation assistance by the amount received from the other source. If the Borrower will receive relocation assistance from a source other than Freddie Mac or the Servicer and the amount is equal to or greater than $3,000, Freddie Mac will not provide any relocation assistance to the extent that the Servicer is aware of such payment. 2. Borrowers subject to Permanent Change of Station (PCS) orders will not be eligible for Freddie Mac relocation assistance as the government assists in defraying the costs of the service member’s relocation 3. The Servicer must conduct an interior inspection of the Mortgaged Premises to ensure that it is vacant, undamaged and in broom-swept condition in the same manner and under the same requirements as stated in Section 9209.5(d) for a deed-in-lieu of foreclosure, unless the property is a 2- to 4-unit property and Freddie Mac allows tenants to remain in one or more unit(s); in which case, the Servicer must ensure the remaining units are vacant, undamaged and in broom-swept condition. The Servicer
Freddie Mac Guide 9301.5
301-32 must take all necessary actions to protect the Mortgaged Premises from waste, damage and vandalism. ■ If the property inspection reveals any environmental hazards or legal concerns as described in Section 9209.1(c), the Servicer must contact Freddie Mac for approval prior to obtaining the consent judgment ■ If the property inspection indicates that the Mortgaged Premises was not left in broom-swept condition or there is damage to the Mortgaged Premises, the Servicer must proceed to judgment and do all of the following: ❑ Estimate the costs for remediating the issues ❑ Reduce the Borrower relocation assistance by the estimated amount ❑ Secure the property following the requirements in Section 9603.1(a) ■ Freddie Mac will reimburse the Servicer for the actual cost of a final property inspection conducted by an outside service up to the expense limits stated in Exhibit 57, 1- to 4-Unit Property Approved Expense Amounts. Refer to Section 9701.2(d) for details regarding reimbursement of property inspection costs. 4. Once the final amount of relocation assistance has been determined, the consent judgment has been obtained and the Mortgaged Premises have been inspected and found to be in acceptable condition, the Servicer must disburse to the Borrower the relocation assistance payment. The Servicer must distribute the relocation assistance funds no more than 30 days after entry of judgment. The Servicer may request reimbursement for the relocation assistance from Freddie Mac via PAID (see Exhibit 88, Servicing Tools.) 5. In addition to the relocation assistance offered by Freddie Mac, the Servicer may in its discretion offer the Borrower an additional financial incentive to obtain the consent of the Borrower to entry of judgment. Any relocation assistance provided by the Servicer will be in addition to the relocation assistance amount provided by Freddie Mac and the Servicer’s assistance amount does not have to be subtracted from the assistance amount Freddie Mac will pay. If the Servicer does offer its own relocation assistance, it must provide the assistance from its own funds, as a payment made directly to the Borrower. 6. The relocation assistance payment may not be applied to other debts secured by the Mortgaged Premises or retained by the Servicer for any reason (iii)Foreclosure sale reporting The Servicer must report the Mortgage as reverting to REO through a foreclosure sale, and not a deed-in-lieu of foreclosure. The Servicer must report the “sale results” as the
Freddie Mac Guide 9301.5
301-33 amount of the judgment (as there is no foreclosure sale) and the Servicer must report the “sale date” as the date the judgment is entered. If the Servicer also waives the deficiency in connection with obtaining the consent judgment, then the Servicer must notify Freddie Mac that the deficiency rights have not been preserved at the time the foreclosure sales results are being reported as provided in Section 9301.9(a). (e) Expedited foreclosures – New York In New York, certain counties or courts have established guidelines for an alternative course of legal action, the New York Foreclosure Inquest Program and/or bulk trials, as a method to expedite foreclosure actions. Servicers may utilize the New York Foreclosure Inquest Program and/or bulk trials as an alternative foreclosure process to accelerate Freddie Mac Default Legal Matters in New York. Servicers and their counsel must use their discretion to determine if the use of the New York Foreclosure Inquest Program and/or bulk trials is in Freddie Mac’s best interest based on the local jurisdiction, the Mortgage and the Mortgaged Premises that is the subject of the foreclosure, and if the foreclosure action meets the eligibility criteria for inclusion in the New York Foreclosure Inquest Program as determined by the participating county or judge. Foreclosure timeline requirements set forth in Section 9301.11(a) will not be waived as a result of using the New York Foreclosure Inquest Program and/or bulk trials and will remain in effect. Reimbursement of expenses Pursuant to Section 9701.3(a), Freddie Mac will reimburse Servicers for approved attorney fees as set forth in Exhibit 57A, Approved Attorney, Foreclosure, Mediation, Postponement Fees and Title Expenses. Servicers must submit expenses for additional attorney fees associated with the use of the New York Foreclosure Inquest Program and/or bulk trials through PAID (see Exhibit 88, Servicing Tools). Freddie Mac will reimburse up to a maximum of $1,750, which is the maximum legal fee for all work necessary to complete an inquest, including, but not limited to: ■ Identification of Foreclosure Inquest Program candidates ■ Pre-trial preparation and correspondence ■ Preparation of trial orders ■ Witness preparation ■ All necessary court appearances
Freddie Mac Guide 9301.5
301-34 This fee is in addition to the approved foreclosure attorney fee. Servicers must use expense code 010009 (Bulk Trial Foreclosure/Inquest Process) when submitting a claim request in PAID for the additional trial fees associated with a Mortgage proceeding in the New York Foreclosure Inquest Program. Legal expenses paid by the Servicer must match or exceed the reimbursement request.