E-3.3-03: Inspecting Properties Prior to Foreclosure Sale (07/12/2017)
- Kacey Olson
© Fannie Mae Single Family Servicing Guide
The servicer must ensure that a thorough property inspection is completed before it decides to liquidate the mortgage loan by initiating foreclosure.
When foreclosure proceedings are initiated, the servicer must ensure that a property inspection is completed within 35 days prior to foreclosure sale for
- all conventional mortgage loans,
- any FHA mortgage loan that cannot be conveyed to FHA,
- all VA mortgage loans for which VA would not establish an “upset price,” and
- any special servicing option RD mortgage loan.
See D2-2-10, Requirements for Performing Property Inspections (11/14/2018) for requirements when a property inspection is needed and A4-2.1-02, Property Inspection Vendor Management and Oversight (11/12/2014) for additional requirements for property inspection vendors. The servicer must also follow the procedures in Requesting Reimbursement for Property Inspectionsand Property Preservation Expenses in F-1-05, Expense Reimbursement (08/15/2018) to submit for reimbursement of associated expenses.