E-3.2-06: Conducting Borrower Outreach During Foreclosure (12/16/2015)
- Kacey Olson
© Fannie Mae Single Family Servicing Guide
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 E-3.4-01, Suspending Foreclosure Proceedings for Workout Negotiations for specific instructions related to servicer-initiated temporary suspension of foreclosure.