A single-partner solution can help servicers streamline the default management process to accommodate rising foreclosure volume.

Foreclosure volume continues to climb, as the delinquency rate rose 18 basis points in the first quarter of 2026 compared with the fourth quarter of 2025, and 40 basis points year-over-year, according to the Mortgage Bankers Association (MBA) National Delinquency Survey. Although March 2026 ICE First Look data reflected a relatively sunny outlook for early mortgage performance — the 23% seasonal drop in new delinquency inflow put 2026 levels on par with 2025 — serious delinquencies continued to trend higher than in 2025, and active foreclosure inventory hit its highest level in six years.

“Servicers that are managing high volumes of defaulted loans in addition to performing loans need a streamlined solution for valuation from a vendor that can support them through every stage of the loan lifecycle,” said Lindsey Hughes, vice president, servicing valuation, ServiceLink. “ServiceLink provides them with not only default valuation services, but also portfolio value refreshes, fix-and-flip valuations, USDA appraisals — essentially any type of mortgage servicing valuation they may need.”

ServiceLink’s end-to-end servicing valuation support enables servicers to consolidate their default valuations under a single reliable partner.

The benefits of using one valuation partner in default

Using ServiceLink through every stage of default — loss mitigation, foreclosure, post-sale and REO — benefits the servicer in a variety of ways:

Streamlined workflows

When all valuation orders go to the same vendor, the need for multiple integrations, portals and contacts disappears. Vendor management and workflow processes are streamlined, saving time, resources and cost. Connection and communication with the valuations provider are key.

“Working with multiple vendors can be challenging, as the servicer has to sort through the logistics of remembering which vendor handles various types of requests, who they need to contact, how to submit the order and what delivery options are available,” Hughes explained. “ServiceLink provides ordering options, including an easy-to-use portal, and a variety of mortgage servicing valuation products and delivery options. Setup is quick and simple, too.”

Default expertise and experience

Though both are intended to establish a property’s value, origination and default valuations can be quite different, with the latter requiring specialized knowledge and experience with distressed properties and foreclosure market dynamics. Recognizing this important distinction, ServiceLink formed its servicing valuation team to focus on properties in default, portfolio value refreshes and performing properties being evaluated for capital markets acquisition or fix-and-flip potential.

Hughes explained, “Our servicing valuation and origination valuation teams bring specialized expertise to their respective roles. On the servicing valuation side, we understand the unique requirements and nuances related to loss mitigation, foreclosure, post-sale and REO valuations. Our appraisers are adept at inspecting delinquent properties and accurately estimating the as-is and as-repaired values that are so vital to servicers’ decision making.”

Hughes went on to share insight into ServiceLink’s commitment to building relationships. “Each of our clients has a dedicated client service representative, who serves as their liaison with the appraiser, agent, and operations, quality control, escalation and management teams. We get to know each client’s priorities and preferences, and we collaborate internally to deliver what they need as easily and efficiently as we can.”

Breadth of default valuation services

Choosing an ideal valuation method depends on the property’s stage in the servicing valuation lifecycle and the surrounding circumstances. ServiceLink offers a full suite of valuation options, ranging from traditional and REO appraisals to Broker Price Opinions (BPOs) and desktop valuation solutions.

Traditional and REO appraisal. A licensed, experienced appraiser from ServiceLink’s national panel conducts a full appraisal, including a physical inspection (interior and exterior), photos, sketches, market and neighborhood analyses, comp reviews and any servicer-specific requirements. This comprehensive approach can be a good option at any stage in the default lifecycle and may include both as-is and as-repaired values.

BPO. This estimate, provided by an experienced real estate broker, combines a local broker's inspection report with an appraisal review. It applies the servicer’s customized rules and provides a quick, relatively inexpensive property value snapshot that may serve as a corroborating or stand-alone value during the loss mitigation, foreclosure, post-sale or REO stage.

BPOs can also be ideal in situations where bulk valuations are needed to refresh property values across a portfolio. They typically include a quick-sale price and an as-is suggested list price, along with photos of the subject property and comparable properties.

Desktop valuation. Used primarily as part of loss mitigation efforts in early stages of delinquency, desktop valuation (DV), desktop valuation with inspection (DVI) and desktop valuation with interior inspection (DVI-I) are available to servicers looking for the quickest estimate of value. These reports are drawn up by an experienced appraiser using MLS, online public records, ServiceLink’s proprietary database information and, in the case of DVI and DVI-I, a property condition report (PCR) that includes inspection photos supplied by a local real estate broker.

National coverage

A valuation partner with national presence can ensure consistent, high-quality performance across a servicer’s entire footprint. ServiceLink’s servicing valuation division covers all 50 states with a dedicated appraisal panel, broker network and support team well-versed and experienced in these valuation services.

“The key to choosing the right servicing partner as you navigate the default management process is to identify who can deliver what you need when you need it. ServiceLink has the right people and processes in place to do exactly that,” said Hughes.

Visit ServiceLink.com/servicers/valuation to find out more about how ServiceLink’s team can support your servicing valuation needs.

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