Foreclosure News: Fannie Mae Increases Maximum Allowable Days in 33 States
In an announcement yesterday, Fannie Mae gave notice that it is increasing the maximum number of allowable days for foreclosure sales in 33 states. The changes take effect for sales on or after August 1.
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In a foreclosure proceeding, the maximum allowable days represents the time it typically takes for a “routine, uncontested” process—from due date of the last paid installment to full completion of the foreclosure. For each state, it takes into consideration the legal requirements of the applicable jurisdiction and common delays that can occur out of the control of the servicer.
Increases in 33 Jurisdictions
Per Fannie Mae, the allowable days have been increased in the following jurisdictions: Alaska (increased to 480 days), Arizona (360), Arkansas (510), California (540), Colorado (540), Connecticut (810), Delaware (960), Florida (930), Georgia (360), Hawaii (1080), Idaho (570), Illinois (690), Kansas (480), Kentucky (600), Louisiana (540), Maine (990), Maryland (720), Michigan (330), Nevada (900), New Mexico (930), New Hampshire (510), Oklahoma (600), Oregon (1080), Pennsylvania (810), Puerto Rico (810), Rhode Island (840), South Dakota (600), Tennessee (360), Texas (420), Vermont (900), Washington (720), West Virginia (390), Wisconsin (540), and Wyoming (360).
Acceptable Reasons for Delay
If proceedings extend longer than the allowable period and the servicer doesn’t give an acceptable reason for the delay, Fannie Mae will require a “compensatory fee.”
Per its Servicing Guide, Fannie Mae views the following as acceptable reasons for delay:
- Bankruptcy (Chapters 7, 11, 12 & 13)
- Military indulgence
- Contested or litigated foreclosure
- Workout in review
- Trial period plan
- Unemployment forbearance
- New Jersey foreclosure delays
Click here for more information on allowable delays and a complete list of all 50 states’ maximum number of allowable days for foreclosure proceedings.
Investors: What do you think about these new time frames? Is your local market affected?
Leave a comment below!