Collections Department Pre-foreclosure Process Clause Samples

Collections Department Pre-foreclosure Process. As a general rule, at 34 calendar days of delinquency, all borrowers are sent a 30-day pre-foreclosure demand letter. Borrowers in states that require more than a 30-day period are given the amount of time specified by state law. Servicer will follow customary and prudent servicing practices when issuing pre-foreclosure demand letters. Borrowers who are unable to pay the total amount past due are reviewed for foreclosure based upon the following criteria: “Early Indicator” default risk score. Those borrowers with risk scores that suggest a strong statistical likelihood of continuing default, are approved for foreclosure as soon as 48 hours after expiration of the demand letter (approximately 64 calendar days delinquent).