Charge-off Settlement Checklist

Charge-Off Settlement Checklist
Use the following checklist to ensure that you send us all of the required post-settlement documentation for a charge-off.
If you have any questions contact 800-FREDDIE. For additional information about charge-offs, refer to Single-Family
Seller/Servicer Guide (Guide) Chapter B65.
 Include the following in your post-settlement package for charge-offs without a release of lien:
Where to Send the Documents
The original Note
A copy of the original loan application
The original security instrument
The recorded assignment of the security instrument from you to
The Federal Home Loan Mortgage Corporation (not “Freddie
Regular or Overnight Mail:
Attention: Freddie Mac Recovery
Freddie Mac
8100 Jones Branch Dr.
Mailstop B3G
McLean, VA 22102
 Additional Activities:
Report the payoff to Freddie Mac as a payoff – prepaid transaction through the Service Loans
application within two business days of receiving our approval letter. When reporting, ensure that the
DDLPI field contains the due date of the last fully paid installment. Remit any funds due, if applicable, to
Freddie Mac.
If the lien is released, you must file IRS Form 1099-C, Cancellation of Debt.
If the lien is not released, notify the borrower of the transfer of servicing.
Send any hazard insurance funds or litigation settlement funds for charge-offs with or without a release
of lien to the following address. Include a cover letter that references the Freddie Mac loan number and
states that the funds are for a charge-off recovery. Do not wire the funds.
BankOne TX-1-0029
14800 Frye Road
Ft. Worth, Texas 76155
Attention: Freddie Mac #730453
This document is not a replacement or substitute for the information found in the Single-Family Seller/Servicer Guide, and /or terms of
your Master Agreement and/or Master Commitment.
©2014 Freddie Mac
August 2014