Freddie Mac joins Fannie Mae in extending foreclosure timelines
On Thursday, Fannie Mae announced that it was increasing its maximum number of allowable days for a foreclosure sale in 33 states. But Fannie Mae wasn’t alone. Freddie Mac has also announced that it is increasing the maximum number of allowable days for “routine” foreclosure proceedings in those same 33 states.
As with Fannie Mae, Freddie Mac said the new foreclosure timelines apply to all foreclosure sales completed on or after Aug. 1.
According to the announcement, Freddie Mac also increased the maximum number of allowable days for the following jurisdictions: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Nevada, New Mexico, New Hampshire, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Dakota, Tennessee, Texas, Vermont, Washington, West Virginia, Wisconsin, and Wyoming.
In some states, like Arizona and Washington, the timeline extensions are as little as 30 days, increasing from 330 to 360 days.
In other states, the increases are much larger:
In Delaware, the foreclosure timeline is increasing by 180 days, from 780 days to 960 days.
In Hawaii, the foreclosure timeline is increasing by 240 days, from 840 days to 1,080 days.
In Maine, the foreclosure timeline is increasing by 300 days, from 690 days to 990 days.
But that’s not even the largest increase in the country.
In Oregon, the foreclosure timeline is increasing by a whopping 480 days, from 600 days to 1,080 days.
As part of its servicing guide, Freddie Mac establishes time frames under which it expects routine foreclosure proceedings to be completed.
According to Freddie Mac, the maximum number of allowable days takes represents the maximum allowable period between the due date of the last paid installment and the completion of the foreclosure sale.
The allowable time frame also represents the time typically required for a “routine, uncontested” foreclosure proceeding.
The allowable time frame reflects the legal requirements of the applicable jurisdiction, and takes into consideration delays that may occur outside of the control of the servicer, Freddie Mac said.
If the number of days to complete a foreclosure sale exceeds stated maximum number of allowable days and the servicer does not provide an adequate explanation to Freddie Mac as to the reasons for the delay, Freddie Mac requires the servicer to pay a “compensatory fee.”
Freddie Mac stated in its announcement that it has extended the temporary suspension of state foreclosure timeline compensatory fee assessments in the District of Columbia, Massachusetts, New York (including New York City), and New Jersey from June 30 to Dec. 31.
Fannie Mae also extended its compensatory fee moratorium in those same states until Dec. 31.
Orig. Post: http://www.housingwire.com/articles/34989-freddie-mac-joins-fannie-mae-in-extending-foreclosure-timelines