Foreclosure proceedings are capped by a limit that varies by state, and mortgage financing giant Fannie Mae has recently increased the amount of time that is available to complete the foreclosure process. Florida was one of 33 states that saw a rise in its allowable time, as its previous maximum of 810 days was increased to 930.
Each of the states did not receive the same increase, however. Changes were contrastive across the board, as some states such as Maine saw a 300-day increase, while others such as Arizona and Washington received a bump of only 30 days.
Florida currently ranks tied for sixth in terms of the most allotted days, a testament to the prevalence of foreclosures in the Sunshine State over the previous decade. At 1,080 days, those who reside in Hawaii or Oregon currently have the most time to complete foreclosures, while District of Columbia residents are given the least amount of time, only 300 days. This time clock officially begins on the date of the last paid installment, and ends at the completion of the entire foreclosure process.
Exceeding the allowable limit
While there are compensatory fees that are doled out to the servicer in the event that the allowable limit is exceeded, Fannie Mae does take into account any occurrences that deem the foreclosure as “not routine.” These “reasonable explanations” include bankruptcy, probate, military indulgence, and contested foreclosure. Mortgages currently in review for HAMP, in an active mortgage loan modification trial plan, or in an active unemployment forbearance will also serve as acceptable explanations. Additionally, recent changes to legislative, judicial, or administrative foreclosure laws may also be considered a viable justification as to why the foreclosure did not meet the imposed limit.
If you are a Florida resident and find yourself dealing with foreclosure, Kelley & Fulton would love to help. We invite you to schedule an initial consultation with an experienced foreclosure attorney in West Palm Beach today who will explain all of your options when it comes to your individual situation.