E-2.3-04: Bankruptcies Involving Mortgage Loans Secured by Investment Properties (11/12/2014)
- Kacey Olson (Unlicensed)
Owned by Kacey Olson (Unlicensed)
© Fannie Mae Single Family Servicing Guide
The servicer must ask the law firm to confirm that the security instrument includes an assignment of rents provision when it refers a bankruptcy case that involves an investment property. If an assignment of rents provision is included, the servicer must ensure the law firm files a Motion for Sequestration of Rental Income to prohibit the borrower from using any rental income without the bankruptcy court’s permission.