The servicer must contact Fannie Mae’s SF CPM division (see F-4-03, List of Contacts) within two business days after becoming aware that a borrower has filed for bankruptcy to ensure Fannie Mae is aware of the filing.
The following table describes when the servicer is responsible for selecting the law firm to handle a bankruptcy proceeding identified after a foreclosure sale and monitoring the law firm.
If the bankruptcy is filed… | Then the servicer… |
after the foreclosure sale, and after redemption expiration or confirmation/ratification completion | is not responsible for selecting and monitoring the law firm that will handle the post-foreclosure sale bankruptcy proceeding. |
after the foreclosure sale, but prior to redemption expiration or confirmation/ratification completion | is responsible for selecting and monitoring the law firm that will handle the post-foreclosure sale bankruptcy proceeding if notified to do so by Fannie Mae. |
prior to the foreclosure sale, but the servicer and/or Fannie Mae only become aware of the bankruptcy filing after the REOgram is submitted | is responsible for selecting and monitoring the law firm that will handle the post-foreclosure sale bankruptcy proceeding
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