source:
  type: guide
  id: fnma-svc-e-3.5-02
  authority: Fannie Mae Servicing Guide E-3.5-02 — Handling Third-Party Sales
  description: Fannie Mae Servicing Guide E-3.5-02 — Handling Third-Party Sales.
  coverage_tier: operative
obligations:
- id: fnma-svc-e-3.5-02-full
  canonical_id: fnma-svc-e-3.5-02-full
  section: Fannie Mae Servicing Guide E-3.5-02 — Handling Third-Party Sales
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide E-3.5-02 — Handling Third-Party Sales
    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: 'E-3.5-02, Handling Third-Party Sales (07/12/2017) The following
      table provides the servicer with requirements for properly handling a third-party
      sale. ✓ The servicer must... Collect the gross sale proceeds and remit the amount
      Fannie Mae is due within ﬁve business days after it receives the ﬁnal payment
      from the third-party bidder. The servicer must follow the procedures in Reporting
      Third-Party Sales to Fannie Mae in F-1-08, Managing Foreclosure Proceedings,
      as well as Remitting Third-Party Sales Proceeds to Fannie Mae in F-1-20, Remitting
      and Accounting to Fannie Mae, for additional instructions. Remit the third-party
      bidder''s initial deposit to Fannie Mae within ﬁve business days after discovery
      that a sale will not be ﬁnalized. Published May 13, 2026 480 ✓ The servicer
      must... Within 14 days of the later of the date the foreclosure sale is completed
      (including receipt of funds), or when applicable, the date the court conﬁrms
      or ratiﬁes the sale: • ask the property insurance carrier to cancel the policy
      and, unless prohibited by the policy or applicable law, send the servicer any
      unearned premium refund; or • request cancellation of Fannie Mae’s mortgagee
      interest in the policy and removal of its name from the policy if the insurance
      carrier is not willing to cancel the policy because Fannie Mae is not the named
      insured. Continue performing necessary activities including property inspections
      to protect Fannie Mae’s interest in the property until the later of the date
      the foreclosure sale is completed (including receipt of funds), or when applicable,
      the date the court conﬁrms or ratiﬁes the sale. Note: The servicer must adhere
      to D2-2-10, Requirements for Performing Property Inspections and the Property
      Preservation Matrix and Reference Guide until one of these occur. Any excess
      sales proceeds must be distributed in accordance with applicable law. Note:
      Fannie Mae will reimburse the servicer for expenses incurred after the third-party
      sale in compliance with Servicing Guide requirements. The servicer must follow
      the procedures in F-1-05, Expense Reimbursement and Requesting Fannie Mae Approval
      for Property Preservation and Maintenance in F-1-08, Managing Foreclosure Proceedings.
      Recent Related Announcements There are no recently issued Announcements related
      to this topic.'
  judgment: false
