In order to give more time to complete a short sale, a lender will often postpone the trustee sale date. Real estate agents often ask the lenders to postpone the foreclosure sale to give them more time to close the short sale deal. Recently however, Edward DeMarco, acting director of the Federal Housing Finance Agency, told loss mitigation servicers that, “if you have an abandoned property or a borrower not willing to discuss or work with anything, then get going [and foreclose],” he advised.
But let’s be clear, Fannie Mae and Freddie Mac will not postpone a trustee sale. Fannie Mae allows several exceptions in the case where the property is occupied, unless “the borrower has displayed an obvious lack of concern for the mortgage obligation.”