Real Estate News & Commentary

Foreclosure News: Fannie Mae Increases Maximum Allowable Days in 33 States

Expertise: Personal Development, Real Estate News & Commentary
40 Articles Written
foreclosure_process

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.

Related: Foreclosures 101: How the Process Works and How Investors Can Profit

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.”

Related: How to Buy a Foreclosure : The Comprehensive Guide to Buying a Foreclosed Home

Per its Servicing Guide, Fannie Mae views the following as acceptable reasons for delay:

  • Bankruptcy (Chapters 7, 11, 12 & 13)
  • Probate
  • 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!

A career writer, editor and blogger, Allison serves as the Director of Content for BiggerPockets.com. In the past, she has channeled her passion and curiosity for all things real estate into her jobs by working in real estate law and heading a blog about real estate market trends. Don’t ask about her dog, Ace, unless you want to see approximately 500 photos of his (adorable) face.

    Paul Gonzales Rental Property Investor from San Antonio, TX
    Replied about 4 years ago
    Great Info, Time to do some home work. Thanks. peace
    Michael S. Helton Real Estate Redeveloper from Reno, NV
    Replied about 4 years ago
    Interesting info Allison. How do you think this will this effect the REO market?
    Russell Brazil Real Estate Agent from Rockville, MD
    Replied almost 4 years ago
    This is the opposite of what should be happening. We need to move these homes out of the foreclosure process and back into the hands of responsible owners faster, not slower.