Fannie Mae to Restart Foreclosure Sales on REO’s

First some commentary from Kimberly Miller from the Palm Beach Post…

Fannie Mae restarts foreclosure sales

Mortgage giant Fannie Mae sent a memo to brokers late last night letting them know it’s OK to restart some sales of foreclosed properties.

While lockouts and evictions are still on hold for foreclosures serviced by GMAC, Bank of America, JP Morgan Chase, One West Bank and Sovereign Bank, brokers were told to proceed with scheduling and holding closings of Fannie Mae owned properties.

It was unclear Thursday whether Fannie Mae has reviewed all of its REOs and decided there were no fraudulent documents filed in the foreclosure cases. Surely that would have been tens of thousands of cases, at least, that would have had to be reviewed. Also, Fannie was one of David J. Stern’s largest clients. It removed its foreclosures from the firm’s care earlier this month and put them on hold. Also unknown Thursday was whether cases handled by Stern are back on the market.

You can read her report in full here…

Now for the Fannie Mae Memo…

Dear Fannie Mae Broker:

In September 2010, Fannie Mae instituted a series of holds on its eviction actions and REO closings in
response to various servicer disclosures with respect to potential defects with affidavits submitted in
foreclosure actions.

Effective November 24, 2010, Fannie Mae is issuing the following instructions for REO properties relating to all loans which were formerly serviced by GMAC, Bank of America, PNC Mortgage Corporation, JP Morgan Chase, One West Bank and Sovereign Bank in all states previously on hold:

1. Our prior guidance with respect to evictions and lockouts for each of the affected servicers remains in effect at this time.

2. Proceed with scheduling and holding the closings of Fannie Mae REO property as agreed between the parties.  If a title issue arises with respect to the potential defect of an affidavit used in the underlying foreclosure, the Closing entity will identify the issue in AMN as they would any other title issue and will work with their title representative for further instructions.

3. Please reach out to all buyers that have been awaiting closing to ensure that they can now move forward. They may reschedule to an earlier date if needed.  It is possible that their loan and/or closing files will need to be updated before their closing can be scheduled.

4. Please reach out to those buyers that elected to terminate their contracts to determine if still interested in purchasing the property.  All details of the contact and response must be noted in AMN.  We require response/update in comments within 72 hours of this notice if the buyer associated with the terminated contract wishes to re-engage.

Over the next week, impacted properties will be removed from their current “Unable to Market” status in AMN and will again be available to market.  Please proceed with all normal marketing activities per our Sales Guidelines.

Thank you for your patience and support as we work through the release process and get these properties back to the market.  As always, if there are questions, please contact your Fannie Mae Representative.

Copy of memo below…


Fannie Mae Memo on Foreclosure Restarts

7 Responses to “Fannie Mae to Restart Foreclosure Sales on REO’s”
  1. Newman says:

    Terriffic, Just TRY to contract on a Fannie Mae foreclosure. After spending money on an Appraisal, Inspection, Loan Lock AND cashing in an IRA for the down payment-Fannie will LET me have 72 hours to start the whole process again!!??? plus-I will get to sign their ridiculous adden-dumb all over, so once again I can wait with no guarantee of closing with an unclouded title, and by the way, where is my $50.00 per diem for extending the closing from Sept. until Infinity???
    Frustrating, you bet! What happened to GROWING UP and suffering the consequences for your actions-if you don’t overspend, budget wisely, and give up a few non-neccessities-I’ll bet you can afford the house that you originally promised to pay for!!!! and won’t need a “loan modification” (new term for hand-out).

  2. l vent says:

    Blame the SHADOW Government, Fannie Mae is a GSE. They are obviously following orders from A FASCIST DICTATOR. If we do not expose who is at the root of FRAUDCLOSUREGATE, and who is FORCING THE BANKS, SERVICERS, FANNIE, FREDDIE, THEIR CRIMINAL NETWORK OF ATTORNEYS TO FRAUDCLOSE, it will not stop. They keep throwing SCAPEGOATS out there to cover-up the truth and CONTINUE TO ROB THE PEOPLE OF THEIR HOMES AND COUNTRY. You can’t kill the snake by cutting off the tail.They are kicking the can down the road while trying to cover-up who is really behind it all. They are creating diversions and disractions while lying. THIS IS WHAT THEY DO.

    • Catherine Mc Manus says:

      reply to 1 VENT : there is more than one dictator….they are all running the FED- Federal Reserve Bank-extremely private-private Corporation-not a government agency but has power, dictates the US Treasury…….
      Has anyone seen Tim Geithers statement today ? FEBRUARY 2011 CSPAN VIDEO
      Have you noticed how many Feds and Banks & Corp. execs are “taking early retirement” ?
      there is more to this “Economic/ Mortgage Crisis than the public will know for ten years, if then…
      We folks in foreclosure just have to hold on as long as possible, the truth will prevail !

  3. housemanrob says:

    I cannot even begin to fathom how TENS OF THOUSANDS OF NON PAYING HOMEOWNERS are going to have these problems resolved. Maybe we should double (stop paying) the effort!!!

  4. housemanrob says:

    Absurd responses by the banksters over and over. The cat’s out of the bag, the criminals are being exposed and the tables are turning. Yet, this goes on! At this point, only the truly ignorant and the real money grabbing scumbags, are going to continue this charade. And we the educated know the latter are the majority!

  5. MSJ says:

    This shouldn’t be because they are still under investigation like everyone else. I hope that homeoweners are fighting this.

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