Freddie Mac issued Bulletin 2022-8, providing temporary guidance on foreclosure actions and its homeowner assistance fund (HAF). The bulletin notes that on March 17, 2021, the Treasury announced federal funds would be allocated to assist COVID-19 impacted borrowers via the HAF. It stated that due to the continued rollout of HAF programs over the last year, it was providing additional temporary guidance for servicers assisting borrowers applying for HAF.
It states, “Effective immediately, servicers must suspend all foreclosure actions, including foreclosure sales, the initiation of any judicial or non-judicial foreclosure process, move for foreclosure judgment or orders of sale, for up to 60 days if:
- The servicer has been notified that the borrower has applied for assistance under HAF.
- Any foreclosure proceeding or execution of a foreclosure sale can be delayed without dismissal of the action.
- The servicer has sufficient time to suspend initiation of the foreclosure process or moving for a foreclosure judgment or order of sale.
- In the case of a foreclosure sale, the servicer is notified at least 7 days before the sale.
“If a servicer determines that it did not have sufficient time to suspend the foreclosure action, the servicer must document why it was unable to delay the action in the mortgage file and, make available to Freddie Mac any applicable supporting documentation upon request,” the bulletin stated.