Foreclosure referral review

How do we check every file for a pending loss mitigation application, SCRA and other protections, and the required notices before it is referred to a foreclosure attorney?

Make the referral a gated review that only clean files pass. Callvu opens the review when a loan reaches the referral point, classifies the loan's status (the delinquency day count, any loss mitigation application and its completeness date, any appeal, a trial plan, a bankruptcy, a confirmed successor, a disaster declaration), runs the protection checks (the 120-day rule, the pending-application rules, the Department of Defense database for SCRA status, the state's pre-foreclosure notice and mediation requirements, the early intervention record), chases any missing notice or document, routes the referral decision to the default manager in the Decision Desk with the checklist, and writes the referral or the hold to servicing with the attorney package.

In scopeComplex: multi-party handoffsCallvu moves: classify, chase and verify, decide, write back

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Last updated November 7, 2026.

The problem today

The file was referred with a complete modification application pending, and the sale had to be rescinded.

Today, without Callvu

A loan reaches the referral point on the default calendar. The default analyst checks the delinquency and sends the file to the attorney. The borrower had submitted the last document for their modification application a week earlier; the application was complete and the rule prohibited the referral. The attorney's fees, the rescission, the complaint and the examination finding followed.

Before a referral, Regulation X prohibits the first notice or filing until the loan is more than 120 days delinquent, and prohibits it while a complete loss mitigation application is pending or an appeal is open; the SCRA requires the servicemember's status to be checked; the state requires its pre-foreclosure notices, breach letters and mediation offers with their timing; the early intervention and the bankruptcy records must be clear. Each is a check on a record, and together they are a gate.

Referral is irreversible enough that the gate should be absolute.

How it runs

From the requestto the system of record.

A delinquent loan reaches the referral point on the investor's and the servicer's default timeline. Callvu opens the referral review on the loan.

Default analyst: Prepares the file and clears the chases.
Default manager: Decides the referral in the Decision Desk with the checklist.
Foreclosure attorney: Receives only referred files with the complete package.
Servicing: Holds the status, the referral and the hold.
Callvu: Classifies, runs the checks, chases, routes and writes.

Classify the loan's status
The delinquency day count, the loss mitigation application status and its completeness date, any appeal and its decision date, a trial plan or an active plan, a bankruptcy case and the stay, a confirmed successor, a disaster declaration on the property, and the state are read from servicing and classified against the referral rules.
Chase and verify the protections
The checks run: more than 120 days delinquent; no complete application pending within the rule's windows; no open appeal; the Department of Defense Manpower Data Center check for SCRA status with the certificate retained; the state's pre-foreclosure notice, the breach or acceleration letter and any mediation notice sent with the timing proven; the early intervention attempts and notice on record; the investor's referral conditions; what is missing is chased from the default analyst or generated and sent, with the clock restarted where the state requires.
Decide
The default manager decides in the Decision Desk with the checklist, each check's result and the evidence, and only the allowed outcomes: refer, hold with the reason and the re-review date, or route to loss mitigation; a file with any failed check cannot be referred.
Write back
The referral with the attorney package (the note, the security instrument, the payment history, the notices, the SCRA certificate, the loss mitigation history) or the hold is written to the servicing system, the attorney receives the package through their channel, and the loss mitigation status continues to be read through the foreclosure so a later complete application stops the process as the rule requires.

Where it ends: Only files that passed every check were referred, each with the evidence and the package, and holds carry their reason and re-review date. The Decision Trace shows each check's result and the decision; the Audit Trace shows the database check, the notices and the referral with their times.

Runtime enforcement

What is enforcedwhile the work runs.

The regulations preloaded in Callvu Studio and the bank's own policies, applied as steps that run, not lines in a binder. A step that breaks a rule does not run, so a completed run was compliant.

Regulations

RESPA (Reg X) foreclosure protections (12 CFR 1024.41(f) and (g)): A servicer may not make the first notice or filing for foreclosure until the loan is more than 120 days delinquent (with exceptions for a senior lien foreclosure or a borrower's bankruptcy or stay); if a borrower submits a complete loss mitigation application during the 120 days or before the first filing, the servicer may not make the first filing until the application is evaluated and denied, the appeal is exhausted, the borrower rejects the options or fails to perform; after the first filing, a complete application received more than 37 days before a sale stops the servicer from moving for judgment or order of sale or conducting the sale until the same conditions are met.
SCRA (50 USC 3931 and 3953): A foreclosure on a pre-service mortgage during military service or within one year after is invalid without a court order, and an affidavit of military service is required before a default judgment; the servicer checks the Department of Defense database before referral and before sale and retains the certificate.
State pre-foreclosure requirements: Each state sets its own pre-foreclosure notices (a breach letter, a notice of intent, a 90-day notice in New York, a pre-foreclosure notice in California under the Homeowner Bill of Rights), mediation programs and timing, which must be complete before referral; the check applies the property's state.

Company policies

No referral without every check passed; the gate is absolute.
The SCRA check is run before referral and before sale, with the certificate on the file.
A hold carries its reason and a re-review date; nothing waits in a queue without one.
The servicing system holds the referral, the package and the hold, and the loss mitigation status keeps being read.

Controls

Status classification from servicing.
Rule checks: 120 days, pending application, appeal, trial plan.
Department of Defense database check with certificate.
State notice verification with timing.
Decision Desk decision with checklist and required outcomes.
Attorney package and servicing write with continued status reading.

Clocks and deadlines

First notice or filing: Not until more than 120 days delinquent (Reg X).
Pending application: No referral while a complete application is pending or an appeal open; after filing, a complete application more than 37 days before a sale stops the sale.
State notices: The state's periods from each notice before referral, proven on the file.
SCRA check: Before referral and again before sale.

Documents and checks

The status classification
Each check's result and evidence (the certificate, the notices, the early intervention record)
The chases and their resolution
The decision with the checklist
The referral package or the hold, and the servicing record

In the Decision Trace

Each check and its result.
The decision and the person.
A hold's reason and re-review date.

In the Audit Trace

The database check with time.
Each notice with time.
The referral or hold with time.

The handoff

Between the front doorand the back office.

The front door

None for the borrower; the loss mitigation status they create through their own processes is what the gate reads.

The back office

The default analyst clears chases; the default manager decides on a checklist; the attorney receives complete packages.

The Decision Desk

Every referral goes to the default manager in the Decision Desk with the checklist and the evidence, and only refer, hold with reason and date, or route to loss mitigation; a failed check removes refer from the outcomes.

Proof

In scope.Proof at scale, not one process at a time.

The kind of process Callvu runs in production for customers in this industry. Ask for a reference on this exact process. The results below are the industry's published proof; each claim code links to its record on agents.callvu.com.

Bank Leumi runs its home lending workflows on Callvu.

MTG-01

Community Bank of Mississippi runs TRID loans on Callvu.

MTG-02

More than 1,000 processes are live across Callvu customers.

Across Callvu customers

Questions

What buyers ask next,answered plainly.

What stops a referral?

Fewer than 121 days of delinquency, a complete loss mitigation application pending, an open appeal, an active plan, a bankruptcy stay, an SCRA status, or a missing state notice; any one removes refer from the outcomes.

When is the SCRA check run?

Before referral and again before sale, against the Department of Defense database, with the certificate retained on the file.

What does the attorney receive?

A complete package: the note, the security instrument, the payment history, the notices with proof of timing, the SCRA certificate and the loss mitigation history.

Related processes

Loss mitigation application Servicemember protections request Early intervention outreach Bankruptcy notice handling Try it in the sandbox All home lending processes

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