E-3.2-06, Conducting Borrower Outreach During Foreclosure (12/16/2015)
When a conventional mortgage loan exceeds the 210th day of delinquency, the servicer is authorized to continue outreach efforts and to work with the borrower to develop and finalize a workout option.
The following table provides the time frame within which the servicer must conclude outreach efforts.
| If the secured property is located in a… | Then the servicer’s solicitation efforts must conclude… |
|---|---|
|
judicial state |
60 days prior to foreclosure sale. |
|
non-judicial state |
30 days prior to foreclosure sale. |
The servicer must continue to pursue workout options during the foreclosure process in accordance with Chapter D2-2, Requirements for Contacting a Borrower and Chapter D2-3, Fannie Mae’s Home Retention and Liquidation Workout Options.
The following table provides additional requirements for workout efforts during foreclosure.
| ✓ | The servicer must... |
|---|---|
|
Keep the law firm advised about the status of relevant workout negotiations. |
|
|
Consult with the law firm before entering into a written workout agreement with the borrower to ensure the foreclosure proceeding will not be impaired in the event it has to be resumed. |
|
|
Notify the law firm within two business days after either
|
See for specific instructions related to servicer-initiated temporary suspension of foreclosure.
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