Foreclosure Defense FloridaGeneral Information

Servicers Now Required to Keep Homeowner’s Associations Current…

HARP-meltdownServicers of Fannie loans are subject to new requirements regarding liens for delinquent HOA dues for PUD and condo properties acquired through foreclosure.   If a servicer is notified by an HOA that the borrower is more than 60 days late with their payments for a PUD or condo project and/or any charges levied by the HOA, the servicer must advance the necessary funds so as not to compromise the Fannie mortgage lien.   This advance can be reimbursed; the time limit depends on the state.   Servicers should also clear any property liens for delinquent HOA dues and assessments on acquired properties no more than 30 days after the foreclosure sale or acceptance of a deed-in-lieu.   Should the HOA refuse to release its claim of disputed lien after “reasonable efforts to reach agreement,” the servicer should get in contact with Fannie’s legal team.

HOUSINGWIRE

One Comment

  • Prince says:

    Hi Matt,

    Do you any link that you might be able to refer to that would show these new requirements, like what document or servicer instruction manual these might now be in?

    Prince

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