Fannie Mae updated Lender Letter LL-2021-02 to announce temporary guidance related to foreclosure actions and the Homeowner Assistance Fund (HAF). Per the updated Lender Letter, the servicer must delay initiating any judicial or non-judicial foreclosure process, moving for a foreclosure judgment or order of sale, or executing a foreclosure sale for up to 60 days if:
- the servicer receives notification from a mortgage assistance fund program provider participating in the HAF program that the borrower has applied for mortgage assistance;
- the servicer:
- has sufficient time to delay initiation of the foreclosure process or delay moving for a foreclosure judgment or order of sale; or
- in the case of a foreclosure sale, is notified at least 7 days before the sale; and
- any foreclosure trial or execution of a foreclosure sale can be delayed without dismissal of the foreclosure action.
A servicer must document why the foreclosure action was unable to be delayed if the servicer determines there was insufficient time to suspend the foreclosure action.
In addition, Fannie Mae removed provisions related to the prior suspension of foreclosure activities and certain bankruptcy requirements (as the requirements are no longer applicable).
All updated Lender Letter is effective immediately.
Click to view the Fannie Mae Update to Lender Letter LL-2021-02: https://www.tenaco.com/wp-content/uploads/2022/04/Fannie-Mae-Update-to-Lender-Letter-LL-2021-02-04-06-22.pdf
