The servicer must use any funds remaining in the borrower’s escrow deposit account to pay T&I premiums that come due during the foreclosure process. The servicer also may use escrow funds to pay costs for the protection of the security and related foreclosure costs as long as state or local laws, government regulations, or the requirements of the mortgage insurer or guarantor do not preclude the use of escrow funds for these purposes. If the escrow balance is not sufficient to cover these expenses, the servicer must advance its own funds. See also Advancing Funds to Cover Expenses in B-1-01, Administering an Escrow Account and Paying Expenses for additional information.
COVID-19 UPDATE:
Find out how Fannie Mae is responding.
Guide Resources
For a comprehensive list of resources such as forms, announcements, lender letters, notices and more.
Customers Recommend Ask Poli
AskPoliIf you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources.
Download PDF Guide
You can also download the printable ~800 page PDF, which include links.
- Doing Business with Fannie Mae
- Escrow, Taxes, Assessments, and Insurance
- Mortgage Loan Payment Processing, Remitting, Accounting, and Reporting
- Providing Solutions to a Borrower
- Default-Related Legal Services, Bankruptcy, Foreclosure Proceedings, and Acquired Properties
- Servicing Guide Procedures, Exhibits, Quick Reference Materials, and Change Control Log
E-3.2-10: Paying Certain Expenses During the Foreclosure Process (11/12/2014)
Have You Tried Ask Poli?
Poli knows. Just ask.
Ask Poli features exclusive Q&As and
more—plus official Selling & Servicing
Guide content.
Related Articles
AskPoli
Customers Recommend Ask Poli
If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources.
Guide Resources
For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more.
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. |