The servicer must cease property preservation activities following the foreclosure sale, unless otherwise instructed by Fannie Mae, even if title transfer to Fannie Mae has not completed (such as during an applicable redemption period or when the court has not yet confirmed or ratified the sale).
Under certain circumstances, Fannie Mae may request the servicer to perform some property management functions that usually would be assigned to a broker, agent, or property management company. For example, Fannie Mae might designate the servicer to handle these functions for a property that has suffered a fire loss since it cannot be marketed until the insurance company settles the claim. However, Fannie Mae must approve all repair and marketing costs involved in the disposition of the property.
Unless otherwise notified by Fannie Mae, the servicer must ensure the deed is recorded so that the tax rolls will be changed to reflect Fannie Mae’s ownership of the property after the foreclosure sale or mortgage release is complete (see E-4.2-01, Completing Conveyance Documents). Fannie Mae will designate a broker, agent, vendor, or property management company to oversee the property marketing and will assume responsibilities for the payment of ground rents and property taxes, as well as fees and assessments invoiced by an HOA, condo association, or co-op corporation once the foreclosure sale occurs.
The servicer is not responsible for these expenses after Fannie Mae acquires the property, unless otherwise directed by Fannie Mae.
The servicer must direct questions regarding the payment of these expenses to Fannie Mae’s SF CPM division (see F-4-03, List of Contacts).
The following table provides references to Announcements that are related to this topic.
|Announcement SVC-2018-06||September 18, 2018|
|Announcement SVC-2017-05||June 21, 2017|
|Announcement SVC-2017-03||April 12, 2017|
|Announcement SVC–2017–02||February 15, 2017|
|Announcement SVC–2016–09||October 19, 2016|
|Announcement SVC–2016–05||June 8, 2016|
|Announcement SVC–2016–04||May 11, 2016|
|Announcement SVC–2015–14||November 25, 2015|