E-4.3-02: Inspecting Properties Post-Foreclosure Sale (08/12/2015)
- Kacey Olson
© Fannie Mae Single Family Servicing Guide
Fannie Mae may require the servicer to conduct a post-foreclosure sale inspection for an acquired property in connection with the cancellation of a flood insurance policy or upon Fannie Mae’s request for another purpose. See E-4.4-03, Continuing or Canceling Flood Insurance Coverage (08/12/2015) for additional information.
The servicer must also conduct any post-foreclosure sale property inspections that FHA and VA require for properties that are conveyed to them.
Fannie Mae will reimburse the servicer for the costs of any post-foreclosure property inspection in the following instances:
- when Fannie Mae requires the servicer to conduct the post-foreclosure sale property inspection; and
- when the post-foreclosure sale inspection is required by FHA and VA, to the extent that the expenses can legitimately be included in an insurance or loan guaranty claim.
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 Inspections and Property Preservation Expenses in F-1-05, Expense Reimbursement (08/15/2018) to seek reimbursement for inspection fees.