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In order to avoid any adjustment to the Insurance Benefit, it is important for the Loan Servicer to bid according to Essent’s instructions at the foreclosure sale. The full text of Essent’s Foreclosure Sale Bidding Instructions is set forth in our Default and Claims Servicing Guide, found in the resources below. Below is a summary of those instructions.

Unless we instruct otherwise, in states where the foreclosure process permits or requires bidding at the foreclosure sale, the Insured should bid or cause the Servicer to bid as follows:

1. If the Loan’s investor is Fannie Mae or Freddie Mac, their respective bidding instructions should be followed.
2. If the Loan’s investor is not Fannie Mae or Freddie Mac, and the:
   
   1. Property value is unknown, the bid must be opened at no more than 80% of the Total Debt. The bid can be opened at a lesser amount when allowed or required by state law. In the event of competitive bidding, the Insured must continue bidding until the bid is won or the Total Debt amount is reached; or if the
   2. Property value is known, the bid must be opened at the Property value or the Total Debt, whichever is the lesser amount. In the event of competitive bidding, the Insured must continue to bid until either the Property value or Total Debt, whichever is the lesser amount, is reached. Essent does not require bidding above that requirement, but the Insured or Servicer should confirm with the owner of the Loan to ensure that these instructions meet their requirements.

If there is a conflict, please contact Essent’s Loss Management Department. You can also email lossmanagement@essent.us or call 833.376.8464 for more information. Our dedicated associates are available to assist you Monday through Friday, 9 a.m. to 5 p.m. Eastern Time.