18.104.22.168 Foreclosure Sale Moratorium and Eviction Suspension
Fannie Mae’s Servicing Guide does not mandate a foreclosure sale moratorium or suspension of evictions that is automatically triggered by a declared disaster. However, the Servicing Guide does require a servicer to suspend foreclosure proceedings and evictions when the servicer “has any doubt about the effect of the disaster event on the condition of a property or the borrower’s employment or income status,” and it requires the servicer to cease any foreclosure proceedings relating to a destroyed property until the servicer evaluates the economic feasibility of foreclosing.105
Before granting the borrower a foreclosure suspension that exceeds ninety days, the servicer must obtain written approval from Fannie Mae. The servicer is not permitted to initiate or complete foreclosure proceedings related to a property that has been destroyed until the servicer evaluates the economic feasibility of pursuing foreclosure.106
105 Fannie Mae, Single-Family Servicing Guide, D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower.
106 Fannie Mae, Single-Family Servicing Guide, D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower.