This topic contains information on offering a mortgage release (deed-in-lieu of foreclosure) for a second lien mortgage loan.
The following table provides the requirements for the servicer of a seriously delinquent second lien mortgage loan when evaluating a borrower for a Mortgage Release.
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Coordinate with the first lien mortgage loan servicer regarding any proposed action related to the acceptance of a Mortgage Release to determine the following:
Order an Owner and Encumbrance Report to ensure that there are no other outstanding liens.
The servicer must obtain Fannie Mae’s prior approval to accept a Mortgage Release. The servicer must follow the procedures in Requesting Approval for a Mortgage Release for a Second Lien Mortgage Loan in F-1-24, Requesting Fannie Mae’s Approval via Fannie Mae’s Servicing Solutions System for requesting Fannie Mae’s approval of a Mortgage Release.