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Are servicers allowed to put the foreclosure on hold to allow time to complete the compromise sale?

Published 08/09/2012 12:48 PM   |    Updated 08/09/2012 01:21 PM
Are we ever allowed to put the foreclosure on hold to allow time to complete the compromise sale?

 

Our expectation is that you consider all loss mitigation options prior to referring a loan to foreclosure. If you put a foreclosure sale on hold and later complete a compromise sale, keep in mind that you will not be allowed interest beyond the maximum timeframe, which is 210 days from the last paid installment plus the state foreclosure timeframe.