Servicing Guide

The Servicing Guide is organized into parts that reflect how lenders generally categorize various aspects of their business relationship with Fannie Mae. To begin browsing, select from any of the sections below. You may also download the entire Servicing Guide in PDF format.

View All Servicing Policy Updates

Download PDF

Hint: Ask in a form of a question.

Fannie Mae Property Preservation Matrix and Reference Guide April 2019 (Section 11: Loans in Bankruptcy and/or Loss Mitigation)

Section 11: Loans in Bankruptcy and/or Loss Mitigation

Overview

Bankruptcy

Loss Mitigation

 

Overview

The servicer must inspect, protect, and preserve property while the loan is delinquent and the property is vacant. This is also required on loans in Bankruptcy and/or Loss Mitigation. Fannie Mae understands there may be additional requirements in order to perform these services under these circumstances.

Bankruptcy

The servicer must consult with its legal department or bankruptcy attorney when addressing preservation issues for vacant properties in bankruptcy. The servicer must contact the debtor’s counsel and request permission to proceed with property preservation efforts at the first time vacancy date and when preservation work is noted by any subsequent vacant inspection. Once appropriate authorization is received, refer to Section 5: Initial Securing and Initial Services and Section 6: Ongoing Services in this Property Preservation Guide for further guidance.

When Submitting a Bid

When submitting bids on properties that are in (or have been) in bankruptcy, the servicer must provide the following information when submitting a  bid via HomeTracker:

•    Date bankruptcy was filed. 
•    Date bankruptcy ended, if applicable.  
•    Each date the property was reported vacant during bankruptcy.   
•    Each date the debtor’s counsel was contacted to request approval to preserve and protect the property and if that request was approved or denied.  

Note: When necessary, a Motion for Relief may be filed simultaneously when requesting permission from debtor’s counsel to proceed with preservation.

Loss Mitigation

The servicer must maintain vacant properties regardless of loss mitigation status and regardless of Quality Right Party Contact (QRPC). If a legally responsible party for the mortgage loan confirms that the property is being maintained, the servicer may choose not to complete maintenance during loss mitigation activities. The real estate agent/broker listing a property is not considered a legally responsible party. The servicer is responsible for ensuring the property is preserved and maintained even if the servicer allows the legally responsible party and/or the real estate agent/broker listing a property to preserve and maintain on the servicer’s behalf.

When Submitting a Bid

For properties that are in or have been in loss mitigation, the servicer must provide the following information when submitting a bid via HomeTracker:

•    Each date the property was reported vacant during loss mitigation.  
•    Each date the borrower or a legally responsible party confirmed the property was being maintained for each vacant inspection during loss mitigation.  

Related Articles

Fannie Mae Property Preservation Matrix April 2019 (Section 1: Introduction to Fannie Mae Property Preservation)

Introduction to Fannie Mae Property Preservation Property Preservation Matrix and Reference Guide Overview  Property Preservation for Fannie Mae...

Read more

Fannie Mae Property Preservation Matrix and Reference Guide April 2019 (Section 2: Technology and Photos)

Section 2: Technology and Photos HomeTracker® Requirements Submitting Bids in HomeTracker Photo Requirements   HomeTracker® Requirements...

Read more

Fannie Mae Property Preservation Matrix and Reference Guide April 2019 (Section 3: Inspections)

Section 3: Inspections Inspection Overview The servicer must use a Property Inspection Report (Form 30) or its own form that provides equivalent...

Read more

Fannie Mae Property Preservation Matrix and Reference Guide April 2019 (Section 4: Property Registrations)

Section 4: Property Registrations Property Registrations Overview Upon delinquency, the servicer must determine any requirements imposed by municipal,...

Read more

Fannie Mae Property Preservation Matrix and Reference Guide April 2019 (Section 6: Ongoing Services)

Section 6: Ongoing Services Ongoing Services After initial securing and services are performed, the servicer must complete ongoing services year-...

Read more

Fannie Mae Property Preservation Matrix and Reference Guide April 2019: (Section 8: Damaged Properties/Disaster Impacted Properties)

Section 8: Damaged Properties / Disaster Impacted Properties Damaged Properties Overview Roof Damages Freeze Damages and Broken/Missing Pipes Demolition/...

Read more

Fannie Mae Property Preservation Matrix and Reference Guide April 2019 (Section 9: Specialty Inspections)

Section 9: Specialty Inspections Specialty Inspection OverviewFrom time to time, the servicer may need to perform a specialty inspection. Specialty...

Read more

Fannie Mae Property Preservation Matrix and Reference Guide April 2019 (Section 10: Code Violations / Citations)

Section 10: Code Violations / Citations Code Violations / CitationsThe servicer is expected to communicate regularly with Code Enforcement authorities, as...

Read more

Fannie Mae Property Preservation Matrix and Reference Guide April 2019 (Section 12: Bid After The Fact)

Section 12: Bid After The Fact Bid After The Fact (BATF)Fannie Mae’s selection of allowable services addresses the majority of maintenance and...

Read more

Fannie Mae Property Preservation Matrix and Reference Guide April 2019 (Section 13: Completion of Work)

Section 13: Completion of Work Timeframes Completed Work Documentation Work Completion Failures   Timeframes All maintenance and repairs within the...

Read more

Fannie Mae Property Preservation Matrix and Reference Guide April 2019 (Section 14: Hazard Claims)

Section 14: Hazard Claims Hazard Claims Overview The servicer must adhere to requirements set forth in the insurance carrier’s policy within the...

Read more

Fannie Mae Property Preservation Matrix and Reference Guide April 2019 (Section 15: Change in Occupancy / Loan Status)

Section 15: Change in Occupancy / Loan Status Change in Occupancy  Post Liquidation, Paid in Full, or Mortgage Release  Third-Party Sales ...

Read more

Fannie Mae Property Preservation Matrix and Reference Guide April 2019 (Section 16: Reimbursement Requests)

Section 16: Reimbursement Requests Reimbursement RequestThe servicer should reference Servicing Guide F-1-05: Expense Reimbursement for expense...

Read more

Fannie Mae Property Preservation Matrix and Reference Guide April 2019 (Section 17: Addendums)

Section 17: Addendums   Timeline and Completion Schedules  Debris and Personal Property Cubic Yard Matrix         ...

Read more

Fannie Mae Property Preservation Matrix and Reference Guide April 2019 (Section 5: Initial Securing and Initial Services) (Initial Securing)

Section 5: Initial Securing and Initial Services    See below for sub-topic: Section 5: Initial Securing and Initial Services: Initial...

Read more

Fannie Mae Property Preservation Matrix- April 2019 (Section 5: Initial Securing and Initial Services) (Property Exterior)

Section 5: Initial Securing and Initial Services      See below for sub-topic: Section 5: Initial Securing and Initial Services:...

Read more

Fannie Mae Property Preservation Matrix and Reference Guide April 2019 (Section 5: Initial Securing and Initial Services) (Identifying Property Conditions)

Section 5: Initial Securing and Initial ServicesSee below for sub-topic: Section 5: Initial Securing and Initial Services: Identifying Property Conditions...

Read more

Fannie Mae Property Preservation Matrix and Reference Guide April 2019 (Section 7: Utilities)

Section 7: Utilities Utility Transfers and Shut Off  Utility Services Utility Transfers and Shut OffWhen utilities (electricity/gas/water/other)...

Read more

Fannie Mae Property Preservation Matrix and Reference Guide April 2019 (Section 5: Initial Securing and Initial Services) (Overview)

Section 5: Initial Securing and Initial ServicesSee below for sub-topic: Section 5: Initial Securing and Initial Services: Overview To see other sub-...

Read more

Fannie Mae Property Preservation Matrix and Reference Guide (Revisions for April 2019)

Revisions for April 2019 The Property Preservation Matrix and Reference Guide has been updated. Revisions include, but are not limited to, the pages noted...

Read more

Fannie Mae Property Preservation Matrix and Reference Guide April 2019 (Table of Contents)

Table of Contents Revisions for April 2019 Section 1: Introduction to Fannie Mae Property Preservation Property Preservation Matrix and Reference Guide...

Read more

Fannie Mae Property Preservation Matrix- April 2019 (Section 5: Initial Securing and Initial Services) (Property Interior)

Section 5: Initial Securing and Initial ServicesSee below for sub-topic: Section 5: Initial Securing and Initial Services: Initial Services: Property...

Read more

Have guide questions? Get answers to all of your policy questions, straight from the source.

Get Started
X
Having Issues with Seeing this Page Correctly?

Use Firefox or Chrome   How to do a hard refresh in Internet Explorer
We recommend that you use the latest version of FireFox or Chrome.

Download Firefox
Download Chrome
  A hard refresh will clear the browsers cache for a specific page and force the most recent version of a page.
    Hold the Ctrl key and press the F5 key.
     

Email Us
If you still have Technical Support questions, feel free to emailAsk_Poli@fanniemae.com.