E-3.2-04, Postponing Foreclosure Referral for Mortgage Loans Not Secured by a Principal Residence (08/17/2016)
The servicer may postpone foreclosure referral of property not secured by a principal residence beyond the 120th day of delinquency upon receipt of a complete BRP. For additional information regarding required referral timelines for mortgage loans secured by a principal residence, see .
The following table provides Fannie Mae requirements for postponement of foreclosure referral beyond the 120th day of delinquency for mortgage loans not secured by a principal residence.
| If… | Then the servicer… |
|---|---|
|
a complete BRP is received |
must delay the foreclosure referral up to 30 days to complete an evaluation. |
|
the servicer makes a retention offer to the borrower, including a Trial Period Plan, that is based on a complete BRP |
must delay the foreclosure referral up to 14 days to allow the borrower to respond to the offer. The borrower may indicate acceptance of the offer as follows:
|
|
a payment is required under the terms of a retention offer that has been extended, including a Trial Period Plan, and the borrower indicates acceptance either verbally or in writing within 14 days of the date of the offer |
must delay the foreclosure referral until the last day of the month in which the first payment is due under the terms of the retention offer. |
|
the servicer receives the first payment in accordance with the terms of a Trial Period Plan |
must delay the foreclosure referral until the borrower breaches the Trial Period Plan. |
|
the servicer receives the first payment in accordance with the terms of a repayment or forbearance plan |
must delay the foreclosure referral until the borrower breaches the plan. |
Verbal or written acceptance, without payment or execution of required documents, serves only to postpone foreclosure referral. Except for those forbearance or repayment plans for which a written agreement may not be required, a workout arrangement must not be consummated without executed documents. See for additional information. The servicer must not postpone foreclosure referral due to the review of a borrower inquiry.
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