Special Foreclosure Sale Requirements and Eviction Halt Extended

Fannie Mae has issued a communication to our Retained Attorney Network (RAN) detailing special foreclosure sale requirements introduced in the Home Affordable Modification program (HMP).  In addition, the communication states that all eviction proceedings must remain on hold and eviction hearings must be continued until after March 31, 2009. Please be aware of the following provisions.

Special Foreclosure Sale Requirements
The clarifications to Announcement 09-05: Introduction of the Home Affordable Modification Program, HomeSaver Forbearance™, and New Workout Hierarchy, include the following:

• Servicers should continue foreclosure case referrals to law firms and trustee companies under existing Fannie Mae guidelines. 
• Effective March 7, 2009, a foreclosure sale may not occur on any Fannie Mae loan until the firm or trustee company has verified with the servicer that one of the following two conditions has been met:
  * Servicer has determined that the borrower is ineligible for a Home Affordable Modification and all other loss mitigation alternatives have been exhausted, or 
  
  * Servicer has completed its solicitation of a borrower with respect to the Home Affordable Modification, all other loss mitigation alternatives, and a non-foreclosure outcome could not be reached.
• Law firms and trustees must retain evidence of the servicer's verification for review by Fannie Mae.
• Servicers, firms and trustee companies should delay the scheduling of future sales that don't allow adequate time for the servicer to evaluate a borrower for a Home Affordable Modification.
• We will reimburse servicers for additional fees and costs related to postponements so long as they are reasonable and not caused by servicer delay.

Extension of Eviction Halt until April 1, 2009
The communication to our RAN also stated that all eviction proceedings must remain on hold and eviction hearings must be continued until after March 31, 2009. If a hearing cannot be continued, firms should take action to cancel the hearing immediately.

These communications serve as an update to Lender Letter 03-2009: Temporary Halt to Foreclosures and Evictions.

Servicer Support
Servicers that have HMP-related questions regarding Fannie Mae portfolio mortgages and MBS pool mortgages should call 1-888-FANNIE5 (1-888-326-6435) or e-mail Servicing_Solutions@fanniemae.com.

Servicers that have HMP-related questions about non-Fannie Mae loans should call 1-866-939-4469 or direct their e-mail inquiries to HomeAffordable_Modification@fanniemae.com.
 
About Safeguard
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 over 500 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.