Servicing Guide

Published September 9, 2020

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E-2.3-02: Addressing Individuals with Fractional Interests in a Security Property (11/12/2014)

When it appears that a fractional interest in a property has been conveyed and a petition for bankruptcy filed solely for the purpose of delaying foreclosure proceedings, the servicer must ensure the law firm prepares a Motion for Relief from Automatic Stay pursuant to Section 362(d)(4), if appropriate. Any orders obtained must be immediately recorded in compliance with applicable state laws governing notices or interests or liens in real property so they will be binding in future cases involving the same property for a two-year period.

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If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources.

Guide Resources

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Visit Selling and Servicing Guide Communications and Forms

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