Page 12 - ForeclosurePreventionGuide_Final _Neat

What happens after that?

th
th
The Collections Department may start contacting you between the 16 and the 30 of the month if the
payment is still due.
What is the Collections Department?

The Collections Department is a division of the loan servicer that is responsible for obtaining and applying
payments due on mortgage loans. The Collections Department will contact you to collect past due payments.

If the Collections Department has not been able to collect payments or make an acceptable arrangement with
you, your account may be referred to the Loss Mitigation Department, also sometimes called the Home
Preservation or the Work-Out Department.

CALL YOUR SERVICER IF YOU KNOW
YOU’LL BE LATE AND ALWAYS RETURN THEIR CALLS!

(Tip: If you believe a debt collector is harassing you, you can submit a complaint with the Consumer Financial

Protection Bureau online or by calling (855) 411-CFPB (2372). You can also contact your state's attorney
general.)

What is Loss Mitigation?

• This is a division of the loan servicer that will work with you to attempt to create a plan to get you back on
track with your mortgage payments.
• You will begin to receive letters from your servicer requesting that you call. ALWAYS OPEN ANY LETTERS
FROM YOUR SERVICER. ALWAYS ANSWER and RETURN THEIR CALLS! This is the period where you may
have other options available to you. If you have concerns about saying the wrong thing to the servicer,
contact a housing counselor or attorney immediately.
• The servicer should make several attempts to contact you but may not engage in abusive or harassing
behavior.

What happens after I am 60 days late?
If you have not yet received a Notice of Pre-Foreclosure Options letter, the servicer may send this out to you. If
you receive the NOPFO, remember that it is important to respond with a written request for a meeting to
discuss your work-out options.

If you have submitted an application for a loan modification or other workout option, the loan will have likely
been transferred to the Loss Mitigation Department.

If you received a NOPFO Letter and did not respond, the servicer may hire a trustee that may initiate
foreclosure proceedings against your property.

NOTE: Servicers may send someone to physically inspect the property to verify that the borrower has not
abandoned the property (sometimes between 45-60 days). This is a normal process. Do not be alarmed but
keep in mind that the servicer does not have the right to enter your home, intimidate or harass you. Call your
local law enforcement if you feel threatened.

January 2020 | Page 12