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…

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4closureFraud.org

Fannie Mae Memo on Foreclosure Restarts