Competitive Pre-Foreclosure Bidding and Second Chance Program on FHA Loans
Cenlar FSB is proud to announce our latest initiative to utilize auction.com to potentially increase third party purchases benefiting both Pre-Foreclosure and Post Foreclosure sales in accordance with HUD’s Claim Without Conveyance Of Title (CWCOT) program.
The overall goal of HUD’s CWCOT program is to sell assets to third parties thereby reducing HUD’s liability and carrying costs of assets pre-conveyance. This program significantly benefits our clients (the servicer), by streamlining the post-sale process and enabling quicker disposition of assets, thereby reducing potential exposures.
During the Pre-Foreclosure process, auction.com will have the ability to bid at the competitive bidding price vs. the non-competitive bidding price in accordance with HUD guidelines (ML letter 2014-24). Additionally, for properties that revert back to our clients, the Second Chance Program will allow these properties to be auctioned off at the competitive bidding price in an effort to attract third party bidders post sale. If a property sells to a third party buyer, either through the competitive foreclosure bidding or through the second chance program, the ability to submit a Claim Without Conveyance of Title (CWCOT) to HUD is than afforded to you.