Servicing Guide

Published September 18, 2018

E-3.2-15: Allowable Time Frames for Completing Foreclosure (11/12/2014)

Fannie Mae has established time frames within which it expects routine foreclosure proceedings to be completed. See the Foreclosure Time Frames and Compensatory Fee Allowable Delays Exhibit for the maximum number of allowable days within which routine foreclosure proceedings are to be completed.

The maximum number of allowable days

  • denotes the maximum allowable time lapse between the due date of the LPI and the completion of the foreclosure sale;

  • represents the time typically required for routine, uncontested foreclosure proceedings;

  • reflects the legal requirements of the applicable jurisdiction; and

  • takes into consideration delays that may occur outside of the control of the servicer.

If the number of actual days to complete the foreclosure proceedings exceeds the maximum number of allowable days, and no reasonable explanation for the delay is provided to Fannie Mae through monthly delinquency status reporting or other information exchange protocols, Fannie Mae will require the servicer to pay a compensatory fee as outlined in A1-4.2-02, Compensatory Fees for Delays in the Liquidation Process.

Examples of reasonable explanations for delays include, but are not limited to, the following:

  • bankruptcy;

  • probate;

  • military indulgence;

  • contested foreclosure;

  • the mortgage loan is currently in review for a mortgage loan modification;

  • the mortgage loan is in an active workout option; or

  • recent legislative, administrative, or judicial changes to existing state foreclosure laws, provided that the servicer is diligently working toward resolution of the delay to the extent feasible.

Fannie Mae will not impose compensatory fees for delays beyond the control of the servicer, provided that the delinquency status codes and any other information reported by the servicer on the loan are timely and accurate.