Fannie Mae announced this week that it will begin monitoring all delinquent loans in its portfolios and backed-securities to guarantee that servicers comply with foreclosure time frames. Fannie Mae currently monitors the progress of the foreclosure process by reviewing delinquent loans at the first of the month. If Fannie Mae believes there is a delay in completing the foreclosure process, and the servicer is unable to provide a reasonable explanation for the delay, Fannie Mae may require the servicer to pay a compensatory fee. This fee will not only reimburse Fannie Mae for damages but emphasizes the importance of foreclosing on delinquent loans in a timely manner.
Fannie Mae also announced an update to the allowable foreclosure time frames for Nevada to 150 days. Foreclosure time frames account for the time starting from when the case is referred to the attorney or trustee for action to the completion of the trustee’s sale. These allowable time frames represent the time typically required for routine, uncontested foreclosure proceedings where mediation is not required.
Joshua D. Carlson, Esq.