Fannie Mae Lengthens Foreclosure Timelines in 33 States

fannie maeFannie Mae announced this week it will extend the timeframe servicers have to process a “normal” foreclosure in Illinois and 32 other states. Currently, Fannie Mae imposes a maximum number of allowable days its servicers can take to complete the foreclosure process. For Illinois, the new maximum is 690 days from the due date of the last paid installment. Servicers who fail to process a foreclosure within this timeframe must pay a “compensatory fee” unless they have a reasonable explanation for drawing the proceeding out beyond that timeframe like bankruptcy, probate, an active loan modification program, or a contested foreclosure.

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