Fannie Mae and Freddie Mac announce new foreclosure timelines

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Fannie Mae and Freddie Mac announce new foreclosure timelines

This information was compiled by Daniel Hobbs of Capital Mortgage Services.

Fannie Mae and Freddie have both announced they are increasing the maximum number of allowable days for “routine” foreclosure proceedings,in 33 states retroactive back to  Aug. 1(2014).

Click here to see Fannie Mae’s new foreclosure timelines.

Click here to see Freddie Mac’s new foreclosure timelines.

The servicing guides establishes time frames under which it expects”routine and uncontested” (i.e. an absence of BK filings or other litigation) foreclosure proceedings to be completed. These extensions are designed to give loan servicers more time to complete a loan mod or short sale plan and to lessen the impact on the homeowner. 

According to both guides, the maximum number of allowable days begins at the due date (usually the 1st of every month) of the last paid installment and the completion of the foreclosure sale.

For example: A homeowner make their last payment on Jan. 29th 2014, the foreclosure timeline starts on Jan.1st 2014 since the payment was due on that date

If the number of days to complete a foreclosure sale EXCEEDS the stated maximum number of allowable days and the servicer does not provide an adequate explanation to Fannie Mae as to the reasons for the delay, Fannie Mae requires the servicer to pay a “compensatory fee.”

The List of “Reasonable Explanations” Includes:



Military indulgence (deployment or service related injury)

Contested foreclosure

The mortgage loan is currently in review for HAMP

The mortgage loan is in an active mortgage loan modification trial plan or unemployment forbearance


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