When the servicer learns after the foreclosure sale date that a borrower has filed for bankruptcy, regardless of the date of the bankruptcy filing, the servicer must submit the Bankruptcy Notification Template to Fannie Mae’s SF CPM division (see F-4-03, List of Contacts) within two business days.
The following table describes when the servicer is responsible for selecting and monitoring the law firm to handle a bankruptcy proceeding identified after a foreclosure sale.
|
If the bankruptcy is filed… |
And... |
Then the servicer… |
|
after the foreclosure sale date |
|
is not responsible for selecting and monitoring the law firm that will handle the post-foreclosure sale bankruptcy proceeding. |
| the filing is prior to redemption expiration or confirmation/ratification completion, as applicable |
is not responsible for selecting and monitoring the law firm that will handle the post-foreclosure sale bankruptcy proceeding unless notified to do so by Fannie Mae. |
|
|
on or before the foreclosure sale date |
the servicer has submitted the REOgram to Fannie Mae |
is responsible for selecting and monitoring the law firm that will handle the bankruptcy proceeding
|
| the servicer has not submitted the REOgram to Fannie Mae | is responsible for selecting and monitoring the law firm that will handle the bankruptcy proceeding. |
