Foreclosuresurvivor's Blog

Surviving Foreclosure

Fannie Mae’s New Policies for those with preforclosure sale, Deed in Lieu of Foreclosure,etc.


Announcement SEL-2010-05 April 14, 2010
Underwriting Borrowers with a Prior Preforeclosure Sale or Deed-in-Lieu of Foreclosure

To support overall market stability and reinforce the importance of borrowers working with their servicers when they have difficulty repaying their debt, Fannie Mae is updating several policies regarding the future eligibility of borrowers to obtain a new mortgage loan after experiencing a preforeclosure event (preforeclosure sale, short sale, or deed-in-lieu of foreclosure). The “waiting period” – the amount of time that must elapse after the preforeclosure event – is changing and may be dependent on the LTV ratio for the transaction and whether extenuating circumstances contributed to the borrower’s financial hardship (for example, loss of employment). In addition, Fannie Mae is updating the requirements for determining that borrowers have re-established their credit after a significant derogatory credit event.

: The terms “short sale” and “preforeclosure sale” are both referenced in this Announcement and have the same meaning – the sale of a property in lieu of a foreclosure, resulting in a payoff of less than the total amount owed, which was pre-approved by the servicer.


This Announcement describes the policy changes in detail and identifies the specific

Selling Guide topics that will be updated on April 30, 2010, when a new version of the Selling Guide will be released. Waiting Period After a Preforeclosure Sale, Short Sale, or Deed-in-Lieu of Foreclosure



April 22, 2010 - Posted by | Uncategorized

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