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Freddie Mac Joins Fannie Mae in Extending Foreclosure Timelines

Freddie Mac has also announced that it is increasing the maximum number of allowable days for “routine” foreclosure proceedings in those same 33 states.

As with Fannie Mae, Freddie Mac said the new foreclosure timelines apply to all foreclosure sales completed on or after Aug. 1.

According to the announcement, Freddie Mac also increased the maximum number of allowable days for the following jurisdictions: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Nevada, New Mexico, New Hampshire, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Dakota, Tennessee, Texas, Vermont, Washington, West Virginia, Wisconsin, and Wyoming.

For California the maximum number of allowable days for a foreclosure sale increased from 510 days to 540 days.

In Oregon, the foreclosure timeline is increasing by a whopping 480 days, from 600 days to 1,080 days.

As part of its servicing guide, Freddie Mac establishes time frames under which it expects routine foreclosure proceedings to be completed.

According to Freddie Mac, the maximum number of allowable days takes represents the maximum allowable period between the due date of the last paid installment and the completion of the foreclosure sale.

The allowable time frame also represents the time typically required for a “routine, uncontested” foreclosure proceeding.

If the number of days to complete a foreclosure sale exceeds stated maximum number of allowable days and the servicer does not provide an adequate explanation to Freddie Mac as to the reasons for the delay, Freddie Mac requires the servicer to pay a “compensatory fee.”

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