E-4.3-01: Managing the Property Post-Foreclosure Sale (06/21/2017)
- Kacey Olson
© Fannie Mae Single Family Servicing Guide
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).
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 (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 HOA or condo association fees and assessments, once the foreclosure sale occurs.
The servicer is not responsible for the payment of future HOA or condo association fees and assessments or property tax bills after Fannie Mae acquires the property. However, for any acquired property in a co-op project the servicer must
contact the management company for any co-op mortgage loan to ensure that all future bills for co-op corporation fees and assessments are sent to the servicer, and
pay the bills as they come due.
The servicer must direct questions regarding the payment of HOA or condo association fees and assessments or property taxes to Fannie Mae’s SF CPM division (see F-4-03, List of Contacts).
Under certain circumstances, Fannie Mae also 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.