Freddie Mac Opts for Judicial Foreclosures
Flickr: morisius cosmonaut
Government-backed lender Freddie Mac says it too will convert all of its new and pending non-judicial foreclosures in Hawaii to judicial foreclosures effective immediately.
The Virginia-based lender made the announcement in a June 30 bulletin, about two weeks after mortgage giant Fannie Mae made a similar announcement.
The moves will allow the lenders to avoid requirements under Hawaii's recently enacted foreclosure law, which only applies to non-judicial foreclosures.
Freddie's announcement, signed by its vice president for single-family servicing, says:
"Effective immediately, due to recent changes in Hawaii State law affecting non-judicial foreclosures, Servicers must:
Commence all new Freddie Mac foreclosures in Hawaii as judicial foreclosures
Convert all non-judicial foreclosures to judicial foreclosures in Hawaii that have not proceeded to foreclosure sale
"In certain circumstances, Freddie Mac may be required to re-foreclose certain recent REO acquisitions that resulted from non-judicial foreclosures. Upon being notified, Servicers must rescind the non-judicial foreclosure and recommence the action as a judicial foreclosure.
In addition, due to the recent change in the foreclosure process, we are currently reviewing the maximum allowable attorney fee for Hawaii and will communicate any revision to such amount, if applicable, in a future Bulletin."
