What Does My Mortgage Servicer Have to Do Before Foreclosing?

If you are asking what your mortgage servicer has to do before foreclosing, the short answer is: quite a lot. Federal consumer protection rules require most servicers to reach out early, put your options in writing, and staff a point of contact who can walk you through avoiding foreclosure.

This guide is for Colorado homeowners who have missed payments or expect to, including military families around Colorado Springs juggling PCS moves and disrupted income. It covers each servicer obligation, what loss mitigation means, and where to get help.

The key servicer obligations at a glance

According to the Consumer Financial Protection Bureau, if you have missed payments on your mortgage loan, your servicer generally must:

• Try to contact you directly early in the delinquency, on a timeline set by federal rules
• Send a written notice describing examples of loss mitigation options and how to apply for them or learn more
• Have policies in place to assign people as your point of contact shortly after you fall behind

Each of these early intervention duties has a specific purpose. Let’s look at what they mean in practice.

Who is my mortgage servicer, exactly?

Your mortgage lender is the financial institution that originally loaned you the money. Your mortgage servicer is the company that sends your statements and handles the day-to-day management of the loan.

After closing, it is common for a different company to take over as servicer. The servicer processes your mortgage payments, tracks principal and interest, manages any escrow account for property taxes and homeowners insurance, and can offer options if you fall behind — as well as initiate foreclosure under certain circumstances.

How to find your servicer

Check your monthly mortgage statement or payment coupon book. If you cannot find one, the MERS Servicer Identification System, run by a private company that maintains information about mortgage loans and servicers, may list your servicer.

Once you know who services the loan, you can hold them to the rules below.

What does my mortgage servicer have to do before foreclosing?

Early contact after missed payments

Your servicer generally must try to contact you directly — by phone or in person — early in the delinquency. Those phone calls are not just collection pressure; they are supposed to open a conversation about whether you might qualify for help.

A written notice of loss mitigation options

The servicer must also send a formal notice in writing. It has to describe examples of loss mitigation options that may be available to help you avoid foreclosure, plus application instructions or information about how to learn more about those options.

An assigned point of contact

Servicers must have policies and procedures to assign people to be your point of contact shortly after you become delinquent. Those people should be reachable by phone, respond to your inquiries, give you accurate information about available loss mitigation options and the actions you must take to submit an application, and have information about any application you have already submitted.

These duties feed into one thing: the loss mitigation review, which is where foreclosure alternatives actually get decided.

What is loss mitigation?

Loss mitigation is the servicer’s process for reviewing whether you qualify for ways of avoiding foreclosure. Many mortgage servicers have to work with you on this review before the foreclosure process moves ahead.

Repayment plan and loan modification

The CFPB specifically points to a repayment plan and a loan modification as solutions your servicer may discuss when you are behind on mortgage payments. A repayment plan spreads the missed amount over time; a loan modification changes the terms of the mortgage loan itself.

Other options to ask about

You may also hear terms like forbearance, short sale, or deed in lieu of foreclosure. Whether any of those apply depends on the loan, the investor, and state law — ask your point of contact or a housing counselor which options exist for your specific loan and what the written notice covers.

Getting into loss mitigation starts with what happens right after a payment is missed, so it helps to understand that stage too.

What happens when a borrower misses a payment?

Failing to make the payment by the due date can trigger additional fees and charges, such as a late fee, and continued missed payments can eventually put your home at risk of foreclosure.

Partial payments and suspense accounts

Servicers are generally not required to accept payments that do not equal a full periodic payment covering principal, interest, and escrow. If you send a partial payment, the servicer may credit it, return it uncashed, or hold it in a suspense account until you have paid enough to equal a full payment.

If you cannot make the full monthly payment, call the servicer, explain the situation, and ask whether they will accept a partial payment or work with you on a repayment plan or loan modification.

If the servicer will not engage, you still have leverage — starting with the complaint process.

What if my servicer isn’t following the rules?

You can request information from your servicer in writing and ask for an explanation of how payments were applied. Check your most recent mortgage statement to confirm the amount due and that prior payments posted correctly.

If you have a problem with your mortgage that the company will not resolve, you can submit a complaint to the CFPB online. The CFPB forwards it to the company and works to get you a response.

Beyond the CFPB, two other resources matter for anyone facing foreclosure proceedings.

Where can Colorado homeowners get help?

HUD-approved housing counselors

This is often the fastest way to get a neutral read on what the servicer is offering.

An attorney

If you are at risk of foreclosure or have been served legal papers, consult an attorney. Colorado’s foreclosure process is governed by state law, and an attorney can explain how the steps, timelines, and any post-sale rights work in this state.

Military borrowers in Colorado Springs

If PCS orders, a deployment, or a change in household income is behind the missed payments, say so when the servicer calls. The point of contact is required to give you accurate information about the loss mitigation options available on your loan, and a housing counselor can help you present a complete application.

Your next step

Do not wait for the foreclosure process to start. Call your servicer today, ask for your assigned point of contact, request the written notice of loss mitigation options if you have not received it, and connect with a HUD-approved housing counselor. If you are current but worried about affordability, talking through the numbers with a local loan officer at 719 Lending can help you understand where the loan stands before a payment is ever missed.

Frequently asked questions

Does my mortgage servicer have to help me avoid foreclosure?

Many mortgage servicers must work with you to see if you qualify for ways to avoid foreclosure, a process called loss mitigation. That generally includes contacting you early in the delinquency, sending a written notice describing loss mitigation options with application instructions, and assigning a point of contact you can reach by phone.

What is loss mitigation on a mortgage?

Loss mitigation is the servicer’s review of whether you qualify for alternatives to foreclosure. Options the CFPB highlights include a repayment plan, which spreads missed amounts over time, and a loan modification, which changes the terms of the loan. Your servicer’s written notice describes the options that may apply to your loan.

Can my servicer refuse a partial mortgage payment?

Generally, yes. Servicers are usually not required to accept payments that don’t equal a full periodic payment covering principal, interest, and escrow. A partial payment may be credited, returned uncashed, or held in a suspense account until enough is received to equal a full payment. Ask your servicer how it handles partial payments before sending one.

What’s the difference between a mortgage lender and a mortgage servicer?

The lender is the financial institution that originally loaned you the money. The servicer handles the loan day to day — statements, payment processing, escrow, and delinquency options — and can initiate foreclosure under certain circumstances. It’s common for a different company to take over servicing after closing.

Who can help me if I’m facing foreclosure in Colorado?

Start with your servicer’s assigned point of contact, then a HUD-approved housing counselor for free guidance on your options. If you’ve been served legal papers or foreclosure proceedings have started, consult an attorney. You can also submit a complaint to the CFPB if the servicer isn’t following the rules.

719 Lending Inc., NMLS #1601989 · Equal Housing Opportunity

719 Lending Inc. is not affiliated with or endorsed by HUD, FHA, VA, USDA, CHFA, the CFPB, or any government agency.

Last updated: September 2026