E-4.3-02, Inspecting Properties Post-Foreclosure Sale (11/13/2019)

Generally, Fannie Mae’s designated broker, agent, or property management company will complete all necessary inspections for acquired properties. However, under certain circumstances, Fannie Mae may require the servicer to conduct a post-foreclosure sale inspection for an acquired property.

The servicer must also conduct any post-foreclosure sale property inspections that FHA and VA require for properties that are conveyed to them.

Fannie Mae will reimburse the servicer for the costs of any post-foreclosure property inspection in the following instances:

• when Fannie Mae requires the servicer to conduct the post-foreclosure sale property inspection; and

• when the post-foreclosure sale inspection is required by FHA and VA, to the extent that the expenses can legitimately be included in an insurance or loan guaranty claim.

See D2-2-10, Requirements for Performing Property InspectionsD2-2-10, Requirements for Performing Property Inspections for requirements when a property inspection is needed and A4-2.1-02, Property Inspection Vendor Management and OversightA4-2.1-02, Property Inspection Vendor Management and Oversight for additional requirements for property inspection vendors. The servicer must also follow the procedures in Reimbursement for Property Inspections and Property Preservation Expenses in F-1-05, Expense ReimbursementF-1-05, Expense Reimbursement to seek reimbursement for inspection costs.