FNMA LL-2013-02 Extension of Foreclosure and Eviction Moratorium
Investor Update: On January 31, Fannie Mae released an update entitled Lender Letter LL-2013-02 Extension of Foreclosure and Eviction Moratorium.
Lender Letter LL-2013-02
To: All Fannie Mae Single-Family Servicers
Extension of Foreclosure and Eviction Moratorium
Effective with this Lender Letter, Fannie Mae is extending the suspension of foreclosure sales and eviction lockouts for borrowers with properties or employment located within the FEMA declared disaster areas eligible for individual assistance.
Servicers must continue to suspend any foreclosure sale on a property located within the FEMA declared disaster area eligible for individual assistance through April 30, 2013. Fannie Mae is also imposing an additional 90-day eviction suspension on REO properties located within the FEMA declared disaster areas eligible for individual assistance through April 30, 2013. The additional suspension covers only eviction lockouts. All other aspects of eviction actions will proceed during this period.
For properties located within federally designated disaster areas but outside the FEMA declared disaster areas eligible for individual assistance, Fannie Mae’s standard disaster relief provisions require that servicers not begin or continue any legal action until they can review the effect the disaster may have had on the condition of the property or the borrower's employment or income status. These provisions also make it clear that foreclosure proceedings may begin (or continue) only when foreclosure is the only alternative.
Servicers must check the FEMA website for the eligible disaster areas. Additionally, servicers must refer to Lender Letter 2012-09, Additional Flexibilities for Mortgage Loans Impacted by Hurricane Sandy, and Servicing Guide, Part VII, Section 406: Disaster Relief, for further guidance on mortgage loans and disaster relief.
Servicers must implement the policies outlined above effective immediately.
Servicers should contact their Servicing Consultant, Portfolio Manager, or Fannie Mae’s National Servicing Organization’s Servicer Support Center at 1-888-FANNIE5 (1-888-326-6435) with any questions regarding this Lender Letter.
Senior Vice President
Chief Risk Officer for Credit Portfolio Management
To view the online release, please click here:
Lender Letter LL-2013-02
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with more than 1,600 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.