Foreclosure Policy
This Foreclosure Policy generally states the conditions and the processes under which banks, credit unions, fintech companies, or other types of financial institutions functions and operates its foreclosure operations. This ensures prudent attempts are made by lending personnel at the earliest indication of such problems that are consistent with safe and sound lending practices to work out loans of homeowners who have defaulted on their contractual obligations that are in the best interests of both the organization and the borrower.
Table of Contents
- Purpose and Contents – Topic 1
- Policy Statement – Topic 2
- Risk Management – Topic 3
- Contacting Delinquent Borrowers – Topic 4
- Options for Delinquent Borrowers – Topic 5
- Loan Workout Program – Topic 6
- Imminent Foreclosure Sale Standards – Topic 7
- Coronavirus Pandemic Applicability – Topic 8
- Audit Policy – Topic 9
- Staff Training – Topic 10
- Retention of Documentation – Topic 11
Recent updates to this product:
03/18/24 Update
Eliminate and/or modify references to the term “Troubled Debt Restructuring” (TDR) with a “Borrower Experiencing Financial Difficulty.”
06/01/23 Update
Eliminate references to allowance for lease and loan losses (ALLL) which was replaced by current expected credit losses (CECL).
This Foreclosure Policy (approximately 28 pages) is available to purchase from BankPolicies.com in Microsoft® Word format.
NOTE: The complete contents of this template are also included in the Mortgage Loan Policy.
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