Final answer:
The time to cure a default for Fannie Mae can vary, often offering a 'cure period' that might commonly be around 30 days. Late payments on a loan can decrease its attractiveness, as can rising interest rates compared to when the loan was originated.
Step-by-step explanation:
When Fannie Mae is involved with a loan where the borrower is in default, either for failure to make payments or for issues such as failure to remove debris from the property, the specific time given to cure the default and maintain ownership can vary based on the terms of the loan agreement, state and federal regulations, and the discretion of the loan servicer. The standard process often includes a period for the borrower to remedy the default, which is commonly referred to as a 'cure period.' This period can be as short as 30 days, but it may be longer in certain circumstances or if legal proceedings cause delays.
If a borrower has been late on a number of loan payments, they are seen as riskier, and an investor may be willing to pay less for such a loan. Additionally, if interest rates have risen since the loan was made, the older loan with a lower rate becomes less attractive in the market, and its value to an investor diminishes.