Fannie Extends, Limits Moratorium

Fannie Mae has extended and limited its foreclosure moratorium in the Gulf Coast states to 21 counties and parishes that sustained the most damage in hurricanes Katrina and Rita.However, the government-sponsored enterprise is continuing to give its servicers flexibility in other devastated areas. The new guidance, which extends the current moratorium until the end of May, stresses that "foreclosure proceedings may begin (or continue) only when foreclosure is the only alternative." The GSE says it is particularly concerned that many borrowers who were forced to evacuate their homes have not contacted their lenders and servicers. Fannie Mae says servicers should continue their "proactive efforts" to contact borrowers and that the GSE will assist in those searchers. "In some cases, we will work with commercial search service providers to perform a comprehensive multi-state search in an attempt to locate the borrower," Fannie said. Fannie Mae can be found online at http://www.fanniemae.com.