I wanted to let you know that I am “efforting” getting my hands on a new Standard and Poor’s market study that reveals the actual, up to the minute, time it takes on a state by state basis to foreclose on a home. The purpose of the study was to compare foreclosure time frames and costs between judicial and non-judicial states and compare that data with the relative success, frequency and savings of other loss mitigation efforts like modifications and short sales. The question it seeks to answer is basically, are banks better of completing modifications and short sales in judicial states especially due to the long time frame for foreclosure? As soon as I read the report I’ll write about it here.
In the meantime, I came across some Fannie Mae servicer guidelines that detail exactly what Fannie Mae expects from its servicers in terms of how long it takes for them to foreclose on a delinquent borrower…..on a state by state basis. This information is important to our industry and our clients so be sure to review your state’s timelines for Fannie Mae.
Four notes I’ll add before I introduce the data:
1. Keep in mind that these time frames begin from the date on which the loan was assigned to a substitute trustee or referred to an attorney for foreclosure. This typically does not happen until the borrower is AT LEAST 90+ days delinquent on the loan and in most cases does not happen until much later.
2. These are the standards expected by Fannie Mae ONLY. It is fair to assume that other investors have similar guidelines but don’t expect them to be exactly the same.
3. You can use this information to either comfort or light a fire under your seller depending on their situation. Real data has that ability.
4. We can help stop foreclosures and manage short sales in all of these states. If you need a short sale “assistant” email us at firstname.lastname@example.org for more information.
Foreclosure Time Frames
The table below specifies the allowable time-lapse between referral to attorney (or trustee) and foreclosure sale date, as referred to in the Fannie Mae Servicing Guide Part VIII, Section 104.05.
State Number of days
District of Columbia 120
New Hampshire 90
New Jersey 300
New Mexico 180
New York- Downstate 420****
New York- Upstate 300****
North Carolina 120
North Dakota 150
Rhode Island 90
South Carolina 180
South Dakota 150
West Virginia 60
Puerto Rico 360
Virgin Islands 300
* Florida: This timeline has an additional 35 days added to allow for a mediation referral prior to a foreclosure suit being commenced.
** Iowa: This timeline represents the standard elapsed time for a judicial foreclosure; the standard elapsed time for a nonjudicial foreclosure is three months. Fannie Mae will sometimes allow a longer elapsed time for a judicial foreclosure if a borrower who occupies a one-family or two-family dwelling as a principal residence files a written demand to delay the sale—10 months, if the plaintiff’s petition includes a waiver of a deficiency judgment; or 16 months, if the plaintiff’s petition does not include a waiver of a deficiency judgment.
*** Maryland: This timeline begins when the case is referred to an attorney to file suit together with a Loss Mitigation Affidavit. The servicer must execute a Final Loss Mitigation Affidavit at the commencement of the case, if appropriate. If a Preliminary Loss Mitigation Affidavit is required, then the time frame allowed will be extended to 120 days.
**** New York: A timeline of 300 days applies to all localities except for New York City and Long Island. A timeline of 420 days applies for foreclosures conducted in the five boroughs of New York City (Bronx, Brooklyn/Kings, Manhattan, Queens, and Staten Island) or on Long Island (Nassau and Suffolk Counties).
Revised 8/24/10 – The foreclosure timelines have been extended in Florida, Maryland, Nevada, and New York due to recent statutory and procedural changes in these states.