Default Servicing

Default servicing refers to the process a loan servicer handles when a borrower misses payments on their mortgage. It involves managing the account, communicating with the borrower, and exploring options like repayment plans or loan modifications to help avoid foreclosure. If no resolution is reached, default servicing can lead to legal proceedings to retrieve the owed money, typically through foreclosure. Overall, it ensures the lender’s rights are protected while attempting to work with the borrower to resolve the default issue.