source:
  type: guide
  id: fnma-svc-f-1-08
  authority: Fannie Mae Servicing Guide F-1-08 — Managing Foreclosure Proceedings
  description: Fannie Mae Servicing Guide F-1-08 — Managing Foreclosure Proceedings.
  coverage_tier: operative
obligations:
- id: fnma-svc-f-1-08-full
  canonical_id: fnma-svc-f-1-08-full
  section: Fannie Mae Servicing Guide F-1-08 — Managing Foreclosure Proceedings
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide F-1-08 — Managing Foreclosure Proceedings
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: cf63a82bbb4adfba
    fetched_at: '2026-05-22T23:53:19Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: 'F-1-08, Managing Foreclosure Proceedings (05/10/2023) Introduction
      This Servicing Guide Procedure contains the following: Reporting Environmental
      Hazards to Fannie Mae Requesting Fannie Mae Approval for Property Preservation
      and Maintenance Published May 13, 2026 578 Foreclosure Sale Marketing and Foreclosure
      Auction Services Reporting Third-Party Sales to Fannie Mae Reporting Environmental
      Hazards to Fannie Mae The servicer must not begin foreclosure proceedings for
      any mortgage loan if it becomes aware of environmental hazards (hazardous waste
      materials, excessive tires, oil spills, etc.) aﬀecting the security property,
      in accordance with E-1.2-02, Timing of the Foreclosure Referral for Mortgage
      Loans Generally. Instead, the servicer must report the information to its Fannie
      Mae Servicing Representative (see F-4-02, List of Contacts). Also see the Property
      Preservation Matrix and Reference Guide for additional information. Regardless
      of whether Fannie Mae is named as a party in any environmental litigation, it
      must be considered non-routine and the servicer must immediately notify Fannie
      Mae’s Legal department by submitting a Non- Routine Litigation Form (Form 20).
      Also see E-1.3-02, Reporting Non-Routine Litigation to Fannie Mae for additional
      information. When the servicer learns about the issuance of a lead-based paint
      citation, obtains other evidence of lead-based paint law violations, or becomes
      aware of threatened environmental litigation relating to a mortgage loan that
      it intends to refer to foreclosure, it must report the information in the following
      table to its Fannie Mae Servicing Representative (see F-4-02, List of Contacts)
      within 30 days after the mortgage loan is referred for foreclosure if the security
      property is a one-unit investment property or a two- to four-unit property.
      ✓ The notiﬁcation to Fannie Mae must include... The current value of the property
      based on, at a minimum, an exterior inspection of the property and, if the borrower
      is cooperative, an interior inspection. The amount of Fannie Mae’s outstanding
      debt. The number of children under eight years of age residing in the property,
      giving the exact age of each such child (if any) and, in the event the property
      is a two- to four-unit property, the unit(s) with children residing in them.
      A copy of any documentation it has obtained related to lead-based paint law
      violations (including actual lead-based paint citation) or threatened or pending
      lead-based paint litigation. Note: When the property is located in Massachusetts,
      the servicer must conduct an actual search to determine whether there are any
      outstanding lead-based paint citations against the property or property owner
      just before it decides to refer a mortgage loan to foreclosure. For the most
      part, Fannie Mae expects that a lead-based paint citation search will involve
      simply making a phone call to the appropriate oversight authority (such as the
      local housing court, department of health, etc.). However, if a citation search
      becomes more complex, Fannie Mae will reimburse the servicer for the actual
      costs of each required citation search it conducts. To determine whether reimbursement
      for a speciﬁc Published May 13, 2026 579 search is warranted, the servicer must
      contact its Fannie Mae Servicing Representative (see F-4-02, List of Contacts).
      If, during the search, the servicer discovers that a lead-based paint citation
      has been issued, it must contact its Fannie Mae Servicing Representative (see
      F-4-02, List of Contacts) immediately so Fannie Mae can evaluate the details
      of the speciﬁc case and advise the servicer of the actions it must take (including
      postponement of the foreclosure sale, if necessary). If Fannie Mae advises the
      servicer to proceed with the foreclosure action, the servicer must conduct another
      search immediately before the foreclosure sale is held to ensure no additional
      citations were issued against the property subsequent to its earlier search.
      Requesting Fannie Mae Approval for Property Preservation and Maintenance When
      the cost of the contemplated preservation work exceeds Fannie Mae’s allowable
      amount, the servicer must submit the request via HomeTracker for Fannie Mae
      approval, in accordance with E-3.2-12, Performing Property Preservation During
      Foreclosure Proceedings. Also see the Property Preservation Matrix and Reference
      Guide for additional information. The following table provides instructions
      when the servicer has not acquired access to HomeTracker. ✓ The servicer must...
      Complete a Property Preservation Request for Repair (Form 1095). Attach all
      photographic evidence along with pertinent supporting documentation to assist
      Fannie Mae in making a sound decision concerning the proposed maintenance. Submit
      the completed form and all attachments to property_preservation@fanniemae.com.
      Once the request for repair is received, Fannie Mae will determine if other
      bids and/or information are necessary. Fannie Mae will send an email to the
      servicer at the email address provided on the request for repair to indicate
      either additional bids and/or information are necessary, or the amount for the
      preservation work is approved. Foreclosure Sale Marketing and Foreclosure Auction
      Services When marketing the foreclosure sale for a property securing a conventional
      ﬁrst lien mortgage loan in select jurisdictions in accordance with E-3.3-04,
      Marketing the Foreclosure Sale and Using Foreclosure Auction Services, the servicer
      must use a vendor identiﬁed in the Foreclosure Sale Marketing and Auction Services
      Exhibit. The use of a Fannie Mae vendor for foreclosure auction services is
      optional, and the servicer must allow the law ﬁrm the discretion to choose whether
      to use a vendor for these services. Published May 13, 2026 580 The Foreclosure
      Sale Marketing and Auction Services Exhibit sets forth complete requirements
      for foreclosure sale marketing and foreclosure auction services, including descriptions
      of each service and applicable jurisdictions. Fannie Mae will directly pay the
      vendors it has engaged for any foreclosure sale marketing and foreclosure auction
      services assigned to them. If the servicer chooses to use a vendor for foreclosure
      sale-related services in a jurisdiction where Fannie Mae has not engaged the
      vendor, the servicer is responsible for paying the vendor. Reporting Third-Party
      Sales to Fannie Mae The servicer must report all third-party sales to Fannie
      Mae in accordance with E-3.5-02, Handling Third-Party Sales. The servicer must
      follow the instructions shown in the following table. ✓ The servicer must...
      Remove the mortgage loan from Fannie Mae’s active accounting records or the
      MBS pool in the reporting period for the month in which the foreclosure sale
      occurred, by reporting an Action Code 71 to Fannie Mae’s investor reporting
      system. Also see the Investor Reporting Manual. Report the proceeds from the
      sale as a “special remittance.” Also see Reporting a Special Remittance in F-1-20,
      Remitting and Accounting to Fannie Mae. Forward a copy of the closing statement
      to Fannie Mae’s SF CPM division (see F-4-02, List of Contacts) on the same day
      it remits the funds to Fannie Mae. The closing statement must include a breakdown
      of: • principal, • interest, • servicing fees, • outstanding advances, and •
      any other items to the date of sale. Recent Related Announcements The table
      below provides references to recently issued Announcements that are related
      to this topic. Announcements Issue Date Announcement SVC-2023-03 May 10, 2023
      Published May 13, 2026 581'
  judgment: false
