Yes, we would recommend retaining documents used in foreclosures or other litigation beyond the ordinary record retention periods. If a foreclosure proceeding or litigation commences, we recommend using the retention period required by HUD: “If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been started before the expiration of the required record retention period records must be retained until completion of the action and resolution of all issues which arise from it, or until the end of the required period, whichever is later.” 24 CFR 92.508(c)(6).
Are the ordinary record retention requirements for loan documents extended if they are involved in a foreclosure or other litigation?
—
by