New rules are being enacted at Fannie Mae in regards to delinquent loans in an effort to force lenders to act quickly in aiding troubled homeowners avoid the foreclosure process.

Lenders will be required to contact homeowners verbally and in writing within 120 days after a mortgage becomes delinquent. Loan modifications or any other options available will be discussed in help the borrower. If foreclosure is unavoidable, lenders will need to begin the foreclosure process as soon as the loan has been delinquent for 120 day.

According to Jeff Hayward, Senior VP of Fannie Mae's National Servicing Organization, We want homeowners to be able to understand their options when facing foreclosure, and we want servicers to reach homeowners early in the process, communicate frequently and clearly, and help them avoid foreclosure.