source:
  type: guide
  id: fnma-svc-e-4.1-02
  authority: Fannie Mae Servicing Guide E-4.1-02 — Eliminations and Rescissions of
    Foreclosure Sales
  description: Fannie Mae Servicing Guide E-4.1-02 — Eliminations and Rescissions
    of Foreclosure Sales.
  coverage_tier: operative
obligations:
- id: fnma-svc-e-4.1-02-full
  canonical_id: fnma-svc-e-4.1-02-full
  section: Fannie Mae Servicing Guide E-4.1-02 — Eliminations and Rescissions of Foreclosure
    Sales
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide E-4.1-02 — Eliminations and Rescissions
      of Foreclosure 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-4.1-02, Eliminations and Rescissions of Foreclosure Sales
      (07/14/2021) Introduction This topic contains the following: General Requirements
      for Eliminations and Rescissions of Foreclosure Sales Compensatory Fees for
      Foreclosure Rescissions General Requirements for Eliminations and Rescissions
      of Foreclosure Sales This topic contains Fannie Mae’s requirements for eliminations
      and rescissions of foreclosure sales. “Elimination” is the process of removing
      a property from Fannie Mae’s REO inventory system of record. “Foreclosure Sale
      Rescission” is the legal process of reversing a foreclosure sale and removing
      Fannie Mae as titleholder to the property. There are circumstances in which
      a foreclosure sale rescission may not involve elimination. However, if an REOgram
      has been conﬁrmed with an associated foreclosure sale, an elimination will also
      be necessary. When the servicer identiﬁes an issue that requires an elimination
      and/or rescission of the foreclosure sale, the servicer must submit a request
      for elimination and/or rescission within ﬁve days. To submit a request for elimination
      and/or rescission, the servicer must complete and submit the Elimination/Rescission
      Request Template. When Fannie Mae identiﬁes an issue that requires a property
      to be eliminated from its REO inventory or a foreclosure sale to be rescinded,
      Fannie Mae will initiate the elimination and/or rescission process. The servicer
      must access the Eliminations/Rescissions Daily Report on Fannie Mae Connect.
      The servicer must complete the actions listed in the following table. Published
      May 13, 2026 484 ✓ The servicer must... Review the Elimination/Rescissions Daily
      Report for notiﬁcation of servicer-requested elimination/rescission approvals
      and Fannie Mae-initiated eliminations/rescissions. Add each eliminated ﬁle back
      into its servicer system within 24 hours of notiﬁcation of approval or notiﬁcation
      that the ﬁle has been eliminated by Fannie Mae. Resume managing the eliminated/rescinded
      ﬁle pursuant to the Servicing Guide. Work with the law ﬁrm that handled the
      foreclosure to ensure that any necessary activities to complete the elimination
      and/or rescission are coordinated in a timely fashion. If a new foreclosure
      sale takes place or other actions are taken to validate the foreclosure sale,
      a new REOgram must be conﬁrmed in accordance with Timing of the REOgram in E-4.1-01,
      Notifying Fannie Mae of an Acquired Property. Upon elimination and/or rescission
      of the foreclosure sale, the servicer is responsible for transferring title
      into the appropriate party’s name and removing Fannie Mae from title in accordance
      with Correcting Conveyances to Fannie Mae in A2-1-04, Execution of Legal Documents.
      The servicer must initiate any required steps to restore title to the appropriate
      party within two days of the elimination and/or rescission notiﬁcation. The
      servicer, however, must adhere to speciﬁc local and state law recordation requirements,
      as applicable. Compensatory Fees for Foreclosure Rescissions Fannie Mae may
      assess the servicer a compensatory fee for any failure to follow Fannie Mae
      guidelines or other servicing error or alleged error that results in a rescission
      of a foreclosure sale. Fannie Mae will not reimburse foreclosure fees and costs
      that are required to complete a new foreclosure following rescission. See A1-4.2-02,
      Compensatory Fees for Delays in the Liquidation Process for additional information
      on compensatory fees. Recent Related Announcements The table below provides
      references to recently issued Announcements that are related to this topic.
      Announcements Issue Date Announcement SVC-2021-04 July 14, 2021 Announcement
      SVC-2019-03 May 15, 2019 Published May 13, 2026 485 Section E-4.2, Conveying
      Title to an Acquired Property'
  judgment: false
