Review of whether foreclosure activity and loss mitigation are moving at the same time in a restricted way.
Dual-tracking review is a review of whether foreclosure activity and loss mitigation review are moving at the same time in a way that may be restricted by servicing rules.
Dual-tracking review matters because borrowers can be harmed if a foreclosure path continues while a complete and timely loss mitigation review should pause or limit certain foreclosure steps. The details depend on timing, completeness, rules, and the stage of the file.
It also matters because borrowers often assume that submitting any paperwork automatically stops foreclosure. The more precise question is whether the application is complete, timely, and protected under applicable servicing rules.
Borrowers may encounter dual-tracking concerns after submitting a loss mitigation package while foreclosure activity is already underway. The issue may involve foreclosure referral, sale scheduling, application completeness, or appeal timing.
The term becomes practical when a borrower is trying to understand whether foreclosure activity should pause while the servicer reviews the file.
A borrower submits a complete loss mitigation application before a scheduled foreclosure sale. The servicer reviews whether foreclosure activity must pause while the application is evaluated under applicable rules.
Dual-tracking review differs from Dual Tracking because dual tracking is the regulatory concept, while dual-tracking review is the practical file review of whether the restriction applies.
It differs from Complete Loss Mitigation Application because completeness is one input into the review.
It also differs from Foreclosure Referral because referral is an escalation step, while dual-tracking review examines whether foreclosure and loss mitigation timing conflict.