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12.2.3.2 Foreclosure Sale Moratorium and Eviction Suspension

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Freddie Mac’s Seller/Servicer Guide does not automatically mandate a foreclosure sale moratorium or a suspension of evictions that is triggered by a declared disaster. Rather, the Seller/Servicer Guide states that “it is imperative that Servicers be considerate of the Borrower’s circumstances and work to obtain quality right party contact with the Borrower as soon as possible,”136 and that, “where quality right party contact has been achieved, servicers have discretion to suspend collection and foreclosure proceedings by placing the Borrower into a forbearance plan for up to 12 months, based on the circumstances of each case.”137 However, under certain circumstances, Freddie Mac may require servicers to suspend foreclosure sales and evictions for a prescribed time period.

Footnotes

  • 136 Freddie Mac, Single-Family Seller/Servicer Guide § 8404.4, Delinquency management activities following a disaster.

  • 137 Freddie Mac, Single-Family Seller/Servicer Guide, § 8404.4(b), Delinquency management activities following a disaster.