The bankruptcy timelines in this chapter represent expected time frames within which Fannie Mae expects a routine bankruptcy proceeding to be concluded, given the applicable legal requirements. Fannie Mae recognizes there are a variety of issues that may cause delays in completing bankruptcy cases.
Examples of potential delays in the bankruptcy process include:
the borrower performing in accordance with an adequate protection order or stipulation,
a bankruptcy trustee attempting to sell the property securing the mortgage loan, or
jurisdictional constraints being present.
The servicer must ensure all pre-petition and post-petition payments are properly applied and monitored in accordance with all applicable laws and as described in Processing Pre-Petition and Post-Petition Payments in E-2.2-04, Managing 13 Bankruptcies. The servicer is responsible and accountable for any and all timeline delays attributable to the law firm.