The servicer must not consent to any transfer of ownership by a grant deed involving a party that indicates its services will relieve the borrower of his or her mortgage loan debt. The following table lists the servicer’s responsibilities if it learns that the borrower has been contacted by such a party proposing the execution of a grant deed.
|✓||The servicer must...|
Explain to the borrower that the transfer of ownership will not be acknowledged, that the borrower will not be relieved of the mortgage obligation, and that foreclosure proceedings may be initiated if the property is transferred.
Work with a borrower who has experienced a hardship to determine whether any workout options are appropriate. See D2-3, Fannie Mae’s Home Retention and Liquidation Workout Options for additional information.
See below for related Q&A:
For more information please see: D1-4.1-04, Transfers of Ownership by Grant Deed