When this happens, the lender may decide to foreclose on the home.
Fourteen months latter they foreclosed on me, and forced me into bankruptcy by insisting on all short payments.
Two things: 1) A gentleman foreclosed on Wells Fargo Bank for not responding to his QWR and then not paying the subsequent fine.
Now, when the alleged mortgage goes into alleged default, they are behind the scenes, pushing the servicer to foreclose on the property.
That is why Freddie can not foreclose in its name.
Fannie, Freddie and Ginnie do not foreclose in their own names.
Fannie, Freddie and Ginnie can not foreclose in their own names.
Holders of notes can't foreclose in judicial states -- owners can.
So, if Fannie insured your mortgage, they will never foreclose in their name.
Keep in mind that Fannie and Freddie are not allowed to foreclose in their names.
What goes on is that the assets of a person who has secured debts will be kept from being foreclosed up until the individual is discharged of her or his financial obligations in a bankruptcy.