When a mortgage loan is delinquent including throughout the foreclosure process, the servicer must perform all property maintenance functions as necessary to ensure that the condition and appearance of the property are satisfactorily maintained.
The servicer must manage and protect the property until it is conveyed to the insurer or guarantor, or until Fannie Mae assigns that responsibility elsewhere, including when
a borrower selects an immediate move Mortgage Release and the REOgram is submitted to Fannie Mae, or
a borrower selects the three-month transition or twelve-month lease.
The servicer must take whatever action is necessary to protect the value of the property in accordance with the Property Preservation Matrix and Reference Guide. This includes making sure that no apparent violations of applicable law are occurring on the property (such as violations of laws relating to illegal narcotics and similar substances) and that the property is protected against vandals and the elements.
The servicer must refer to the Property Preservation Matrix and Reference Guide for all maintenance work when a mortgage loan is delinquent and the property is vacant or abandoned. When the cost to complete property preservation work will exceed the Fannie Mae allowable, the servicer must submit the request via HomeTracker. The servicer must follow the procedures in Requesting Fannie Mae Approval for Property Preservation and Maintenance in F-1-08, Managing Foreclosure Proceedings, for detailed instructions for submitting a request when it does not have access to HomeTracker.
The following table provides references to Announcements that are related to this topic.
|Announcement SVC-2017-06||July 12, 2017|