Foreclosure proceedings are capped by a certain number of allowable days that vary per state, and mortgage financing leader Fannie Mae has increased this maximum in many states across the nation. 33 states saw an increase in their allowable limit, though the number of additional days was different for each. For example, Maine saw a 300-day increase in their limit, from 690 to 990, while the cap for Arizona and Washington only increased by a mere 30 days, from 330 to 360. Florida, which owns one of the longest allowable periods, saw its limit rise from 810 days to 930. For each state, this allowable period begins with the last paid installment and ends when the foreclosure sale is officially completed.
Ramifications for exceeding the limit
While the limit is strict, Fannie Mae will take into account exceptions for foreclosure proceedings that are not “routine.” Reasonable delays that occur outside of the servicer’s control will tack on additional time to the state limit. According to Fannie Mae, reasonable explanations include:
- Military indulgence
- Contested foreclosure
- Mortgage loans currently in review for HAMP
- Mortgage loans that are in an active mortgage loan modification trial plan or unemployment forbearance
- Recent legislative, administrative, or judicial changes to existing state foreclosure laws. In this case, the servicer must be diligently working to resolve the delay
If there is not a reasonable explanation for exceeding the imposed limit, Fannie Mae will require the servicer to pay a “compensatory fee” of an undisclosed amount.
If you would like to know more about the amount of time you have to complete your foreclosure, or are wondering if your case falls under the category of “not routine,” Graham Legal can certainly help. We invite you to schedule an appointment with one of our experienced Miami foreclosure defense attorneys and let us explain all of the potential options in your specific situation.