Non-Performing Loan Sales Offer Alternative Options to ForeclosureBy Keosha Burns Fannie Mae recently announced its next sale of non-performing loans. The three pools of approximately seven thousand loans totaling $1.2 billion in unpaid principal balance (UPB) are available for purchase by qualified bidders. "This is our third sale of non-performing loans, meant to reduce the number of severely delinquent loans we hold and provide borrowers with additional options to avoid foreclosure," says Joy Cianci, senior vice president for Credit Portfolio Management at Fannie Mae. "As with previous loan sales, servicers are required to apply a range of options to help borrowers avoid foreclosure whenever possible. These actions help in stabilizing neighborhoods and reducing severely delinquent loans on our books." Among other elements, terms of Fannie Mae's non-performing loan transactions require that when a foreclosure cannot be prevented, the loan owner must market the property to owner-occupants and non-profits exclusively before offering it to investors, similar to Fannie Mae’s FirstLook® program. For more information, visit www.fanniemae.com/progress. |
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