![]() With Evaluating a Borrower for Imminent Default for Fannie Mae Short Sale or Fannie Maeĭ2-1-01, Determining if the Borrower’s Mortgage Payment is in Imminent Default.īased on a complete BRP, unless one of the following conditions applies, in whichĬase the servicer must evaluate the borrower for a Fannie Mae Short Sale without receiving Note: If the mortgage loan is current or less than 60 days delinquent, the servicer mustĭetermine that the borrower’s monthly payment is in imminent default in accordance Mortgage insurer (if any) and the mortgage holder relating to the conveyance of the “The seller’s obligation to perform on this contact is subject to the rights of the ![]() The following cancellation clause must be included in the sales contract: The documents will indicate that the sales proceeds must be paid to the mortgage holder.Īll sales contracts that will not fully satisfy the outstanding debt must includeĪ contingency clause making the sale of the property “contingent on the mortgage holder’sĪnd the mortgage insurer’s, if applicable, agreement to the sale.” They must execute all documents that are necessary to sell the property, even though Particularly the section captioned “Foreclosure, Repossession, or Abandonment.” ![]() There may be possible tax consequences if any portion of the outstanding debt is forgiven,Īnd refer the borrower to IRS Publication 544, Sales and Other Dispositions of Assets, See Evaluating a Borrower’s Ability to Make a Cash Contribution for additional information on evaluating a borrower’s ability to make a cash contribution. Loan holder may require them to contribute funds to reduce its loss. If the sales proceeds are not sufficient to satisfy the mortgage loan debt, the mortgage Must maintain the property in accordance with the Property Preservation Matrix and Reference Guide. In the event the borrower cannot maintain the propertyĪnd the property is vacant or abandoned on a delinquent mortgage loan, the servicer They will remain responsible for maintenance of the property until it is sold and They must allow the vendor(s) timely and sufficient access to the property for the In the event that the foreclosure process has not yet started. Listing the property for sale may not delay the initiation of foreclosure proceedings, The servicer must advise the borrower of the following. Verbally or in writing, about a short sale with the borrower. The following table provides the servicer’s responsibilities when communicating, either The servicer must follow the procedures in Requesting Reimbursement for Expenses Associated with Workout Options inį-1-05, Expense Reimbursement for requesting reimbursement of allowable fees.Ĭommunicating with a Borrower Regarding a Fannie Mae Short Sale Short sale without first conducting an evaluation for a home retention workout option.ĭ2-2-05, Receiving a Borrower Response Package for information on evaluating the borrower for workout options. It is authorized to proceed directly with evaluating the borrower for a Fannie Mae ![]() If the servicer is responding to an unsolicited short sale request from a borrower, Provide evidence of the borrower’s indication of intent to pursue a short sale to Ownership of the property to ensure that the borrower’s rights are appropriately protected. Prepaid items and assigned any insurance proceeds to Fannie Mae, if applicable.Įnsure the sales proceeds are received on a timely basis.ĭ2-4-02, Reporting a Workout Option to Fannie Mae and the Investor Reporting Manual.Īppropriately manage liquidation workout options that involve the borrower’s relinquishing Provide instructions to the title company regarding closing of the transaction inĮnsure that the borrower has waived reimbursement of any escrow, buydown funds, or Work with the title company to resolve any issues that may delay the closing, including Review the settlement statement prior to the short sale closing for proper transfer Requirements and the borrower expresses an interest in a short sale. Obtain a property valuation if there’s reason to believe the borrower meets the eligibility Review each sales contract in detail to verify that the terms comply with this Guide. To explain the requirements related to the short sale and refer the agent to HomePathįor Short Sales to register the short sale offer, as applicable. Oversee the sale of the mortgaged property by communicating with the listing agent On the status of the mortgage loan at the time of the respective evaluation.Īdvise the borrower of the advantages and disadvantages of agreeing to a short sale.Īdhere to the time frames for evaluating the short sale and closing the short sale The following table provides some of the servicer’s responsibilities in connectionĮvaluate the borrower’s eligibility and cash contribution requirements, if any, based General Requirements When Processing a Fannie Mae Short Sale
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