Servicing Guide

Published September 9, 2020

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Updated Will Fannie Mae suspend foreclosures for borrowers impacted by COVID-19?

Fannie Mae acknowledges that the servicer must suspend foreclosure-related activities in accordance with the requirements of the CARES Act, which provides:  “Except with respect to a vacant or abandoned property, a servicer of a Federally backed mortgage loan may not initiate any judicial or non-judicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale for not less than the 60-day period beginning on Mar. 18, 2020.” Fannie Mae has now extended the suspension of foreclosure-related activities through Dec.31, 2020.  During the period of the extension, servicers may not, except with respect to a vacant or abandoned property, initiate any judicial or non-judicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure sale.  This suspension does not apply to mortgage loans secured by properties that have been determined to be vacant or abandoned. See Lender Letter LL-2020-02, Impact of COVID-19 on Servicing for additional information. 

Note: This FAQ is from the Fannie Mae COVID-19 Frequently Asked Questions.

See below for more information on COVID-19:

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If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources.

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