VALID VENDORS REAL ESTATE SERVICES LLC,
Property Maintenance and Management: Company.Property Preservation Matrix and Reference Guide lines for our services
Effective Date: 10/12/2011
I. Property Preservation Matrix
As indicated in the Servicing Guide, Part VIII, Section 106: Property Maintenance and Management,
throughout the foreclosure process the servicer is responsible for performing all property maintenance
functions to ensure that the condition and appearance of the property are maintained satisfactorily.
Servicers should refer to the Property Preservation Matrix below for property preservation allowable
reimbursement amounts. Where the cost of the contemplated preservation work exceeds these amounts,
the request will be submitted via HomeTracker
®
, the preferred method for all over allowable
reimbursement amounts. If the servicer does not have access to HomeTracker, the servicer must submit
a Property Preservation Request for Repair (Form 1095) with supporting photographic documentation via
e-mail to property_preservation@fanniemae.com.
All pertinent supporting information and documentation that would assist in making a sound and complete
property preservation decision should be included. Photos should be submitted as attachments to each
applicable line item.
Color photos must be submitted as attachments to each applicable line item per the following
requirements:
Submitted photos must pertain to the applicable bid line item.
A maximum of five attachments per line item is allowed.
Photo dimensions must be a minimum of 1051 × 1500 dpi.
Date and time stamp are required on each photo.
Before and after photos should be available upon request.
In cases where damages are found, interior and exterior photos detailing property conditions are
required.
All bids are expected to be within the allowable reimbursement amounts unless extraordinary conditions
warrant bid modification. If these conditions exist, the bid must be submitted with a
description and photos to support the request. All bid line items not identified in the Matrix below will be
reviewed for approval. To facilitate the review of the bids, the use of an industry standard based cost
estimator tool is useful although not required. The estimates, photos, and any supporting documentation
should be uploaded as attachments in HomeTracker.
As noted above, HomeTracker is the preferred method for all over allowable reimbursement requests.
This application was specifically designed to facilitate communication between Fannie Mae and servicers
to streamline work processes. HomeTracker allows servicers to search property information, submit
requests, receive responses, track history, and print requests for files. Table A:
PROPERTY PRESERVATION MATRIX
Property Preservation Type Comments
Securing
Knob lock or Knob Lock with Deadbolt Maximum $60 each
Padlock or Padlock with Hasp Maximum $40 each
Slider Lock Maximum $25 each
Window Lock Maximum $25 each
Boarding Maximum $0.90/UI
Security Door Maximum $250/per door
Cover Dryer Vent Maximum $25.00/1 max per unit
Repair Garage Door Maximum $100/max per unit
Pool/Hot Tub/Spa Fence/Lanai Securing Maximum $400 total
Lawn Maintenance
Less than 10,000 sq ft - Maximum $100
10,001 - 15,000 sq ft - Maximum $150
15,001 - 25,000 sq ft - Maximum $175
25,001 - 35,000 sq ft - Maximum $200
Initial Lawn Maintenance and Desert
Landscaping
(Less than 12" height)
35,001 - 43,560 sq ft - Maximum $225
Less than 10,000 sq ft - Maximum $80
10,001 - 15,000 sq ft - Maximum $100
15,001 - 25,000 sq ft - Maximum $125
25,001 - 35,000 sq ft - Maximum $150
Re-cut Lawn Maintenance and Desert
Landscaping
35,001 - 43,560 sq ft - Maximum $175
Trees/Shrubs/Vines Maximum $250 per calendar year
Trees/Shrubs/Vines (HI & FL) Maximum $500 per calendar year
Winterization
Dry Winterization Maximum $100 for first unit
Wet/Steam Winterization Maximum $150 for first unit
Radiant Winterization Maximum $250 for first unit
Additional Unit Any Type of Winterization Maximum $50 each
Health and Safety
Cleaning Refrigerator or Stand-Alone
Freezer
Maximum $100 each
Cleaning Toilet Maximum $75 each
Capping Wires Maximum $1 each
Capping Gas/Water/Sewer Maximum $25 each
Extermination Maximum $100 per calendar year
Debris
Debris Removal Maximum $40/cu yd
Move Exterior Debris Maximum $20/cu yd
Roof Issues
Roof Replacement See Guide below
Patch/Repair (active leak only) Maximum $2.00/sq ft, maximum total cost $800
Chimney Cap Maximum $250/per cap/ 2 max per unit
Additional Service Items
Sump Pump Maximum $300
Utility Transfers and Shut Off Maximum $75 for one time shut off/transfer fee of each
Vacant Property Registration (VPR) Actual cost to register per local requirement
Snow Removal
Maximum $75 each clearing, maximum property cap of
$375 per calendar year
Address Posting Maximum of $50
Emergency Funds Maximum $500
© 2011 Fannie Mae. Trademarks of Fannie Mae. Page 2 of 13 10/12/2011
This document is incorporated by reference into the Fannie Mae Servicing Guide. HomeTracker
®
is a trademark of HomeTelos™
.
All rights reserved.© 2011 Fannie Mae. Trademarks of Fannie Mae. Page 3 of 13 10/12/2011
This document is incorporated by reference into the Fannie Mae Servicing Guide. HomeTracker
®
is a trademark of HomeTelos™
.
All rights reserved.
II. Property Preservation and Management Reference Guide
Specific servicer requirements for preforeclosure property preservation are as follows:
Securing
As noted in Announcement SVC-2011-08: Delinquency Management and Default Prevention, if the
property is vacant, the servicer must perform property inspections.
The servicer should initiate securing with any report of vacancy. Contact information should be posted at
the time of initial securing, if required by local ordinance.
Securing allowable reimbursement amounts should be utilized only if existing windows/doors are
inoperable or are not present. Do not submit bids to replace doors, replace windows, or reglaze windows
unless local ordinance prohibits boarding. When local code differs from Fannie Mae requirements,
servicers must submit a copy of the local code with any securing bids to validate the bid.
Lock Changes (Knob/Pad/Slider/Window Locks)
Servicers are required to secure a rear or a secondary door for access on vacant properties, including the
main dwelling and all outbuildings. Only one lock is allowed to be changed on main dwellings for access.
The main entrance should be rekeyed, if it is the only option for gaining access. In the event the main
dwelling becomes unsecure or servicer’s lock(s) are changed, proceed with re-securing to gain access.
If the property is a condo and cannot be rekeyed within the allowable reimbursement amount, the condo
association must be contacted for access and to obtain a copy of the key in Fannie Mae’s allowable cost.
For special circumstances, submit two bids simultaneously.
Garage doors must be secured with existing locks when possible. If they cannot be secured with existing
locks, secure within the allowable reimbursement amount.
Slider locks and window locks must be placed if existing locks are inoperable or are not present on the
main level and where accessible.
The allowable reimbursement amount for locks includes the removal and replacement of the lock.
Boarding
Properties must be boarded to prevent vandalism where required by local ordinance or when exterior
openings are unsecurable or broken. The boarding allowable reimbursement amount does not include the
cost of a padlock or padlock/hasp. Boarding is measured by calculating united inches (UI). To calculate
UI, add length and width (for example, a 25x60 window is 85 UI).
The allowable reimbursement amount should be used for the following instances:
Windows
Slider door
Garage door
Pet door
Crawl space
Security Door
A security door should be utilized when an exterior door cannot be secured with the existing door and
hardware. The security door should allow access. The allowable reimbursement amount includes
boarding and hardware.
Cover Dryer Vent
The allowable reimbursement amount for dryer vent covers will be used only when a cover is not present. Repair Garage Door
The allowable reimbursement amount to repair a garage door must be used in lieu of boarding when it is
more cost effective. If the cost to repair exceeds the allowable but is less then boarding, the servicer
should submit a bid for the repairs with all necessary information.
Pool/Hot Tub/Spa Fence/Lanai Securing
Securing is defined as the confirmation that all fences, lanai, and gates are intact, secured, and a
minimum of four feet high. If the fence, lanai, or gate cannot be repaired within the allowable
reimbursement amounts, a bid to repair or replace must be submitted.
When an above ground pool cannot be secured per Fannie Mae guidelines, a bid to tarp should be
submitted.
If an in ground pool cannot be secured per Fannie Mae guidelines, a bid to cover with a
polypropylene safety cover anchored to the pool deck should be submitted. At the same time a bid to
board the pool should be submitted.
The allowable reimbursement amount should be used for the following instances:
Fence repair
Lanai
Gates
Posts
Pickets
Chain links
Gate locking mechanism
Lawn Maintenance
Initial Lawn Maintenance and Desert Landscaping
Initial lawn maintenance can be performed on lots up to one acre (43,560 square feet) where grass is less
than 12” on more than 51% of the lot. It is at the servicer’s discretion to either complete a perimeter or full
lot cut on lots over 15,000 sq ft. Perimeter is defined as 100 x 150 or 15,000 sq ft. and will be completed
from front view of the property to the street.
Oversized lots (more than 43,560 sq ft): If perimeter cuts are not acceptable due to local ordinance, a bid
for initial full lot, subsequent cuts for the season, and a copy of the local ordinance dictating only full lot
cuts are accepted should be submitted simultaneously for prior approval. If neighboring
properties/businesses are within close proximity to property, a bid for initial full lot, subsequent cuts for
the season, and a photo documentation of neighboring properties/businesses within close proximity
should be submitted simultaneously for prior approval.
Desert landscaping should be performed within the allowable when landscapes are rockscaped or low
maintenance landscaping. This should include pulling and spraying of weeds, removing tumbleweeds,
and trimming grass where necessary.
Initial lawn maintenance and initial desert landscaping should be completed within 10 calendar days of
the property being reported vacant or of grass cut season starting, whichever comes later.
In areas that allow year round initial/year round re-cuts, only one initial cut will be allowed. All other
states are allowed one initial lawn/desert landscaping per calendar year.
The yard and its surroundings should be in model condition upon completion of the yard maintenance.
The grass cut allowable includes but are not limited to the following:
Edging
© 2011 Fannie Mae. Trademarks of Fannie Mae. Page 4 of 13 10/12/2011
This document is incorporated by reference into the Fannie Mae Servicing Guide. HomeTracker
®
is a trademark of HomeTelos™
.
All rights reserved. Minimal leaf removal
Incidental debris/trash
Clearing of all grass cut clippings
Initial Lawn Maintenance and Desert Landscaping Schedule
Initial grass cuts and desert landscaping will be completed during any month of the year in the
following states/territories:
AL, AZ, CA, FL, GA, HI, LA, MS, NM, NV, SC, TX, Guam, Puerto Rico and Virgin Islands
Initial grass cuts and desert landscaping will be completed between April 1 and October 31 in the
following states/territories:
AR, CO, CT, DC, DE, ID, IL, IN, IA, KS, KY, ME, MD, MA, MI, MN, MO, MT, NE, NH, NJ, NY, NC,
ND, OH, OK, OR, PA, RI, SD, TN, UT, VT, VA, WA, WV, WI, WY.
Initial grass cuts will be performed from June 1 to September 30 in the state of:
AK
Refer to Table B: GRASS CUT SCHEDULE.
Re-cut Lawn Maintenance and Desert Landscaping Schedule
Re-cuts should be completed in the allowable based on lot size to be cut. Prior approval is required for
any re-cuts outside of the grass schedule:
Re-cuts will be completed year round maximum once per month in AZ, NM and NV
Re-cuts will be completed year round maximum twice per month in CA, FL, HI, Guam, Puerto Rico
and Virgin Islands.
Re-cuts will be completed from March 1 to November 30 maximum twice per month in AL, GA,
LA, MS, SC and TX.
Re-cuts will be completed from June 1 to September 30 maximum twice per month in AK.
Re-cuts will be completed April 1 to October 31 maximum once per month in CO, UT and WY.
Re-cuts will be completed April 1 to October 31 maximum twice per month in AR, CT, DE, ID, IL,
IN, IA, KS, KY, ME, MD, MA, MI, MN, MO, MT, NE, NH, NJ, NY, NC, ND, OH, OK, OR, PA, RI, SD,
TN, VT, VA, WA, WV, WI and DC
Re-cuts for desert landscaping, rockscaped or low maintenance landscaping should be performed bimonthly
Refer to Table B: GRASS CUT SCHEDULE.
Trees/Shrubs/Vines
Trees/shrubs/vines should be trimmed when affecting condition or access to the property from street view
only. This includes trimming shrubs and trees, removing clippings, removal of dead plants/limbs, removal
of vines on main dwelling, and saplings near foundation. Initial trees/shrubs/vines allowable should be
performed within 30 days of first time vacancy report.
Note: Bid to remove trees should only include removal to the stump, not removal of the root system.
© 2011 Fannie Mae. Trademarks of Fannie Mae. Page 5 of 13 10/12/2011
This document is incorporated by reference into the Fannie Mae Servicing Guide. HomeTracker
®
is a trademark of HomeTelos™
.
All rights reserved.Table B:
GRASS CUT SCHEDULE (excludes desert landscaping)
Initial Cut Re-cuts
State
Abbrevi
ation
Any
Mont
h
April
1 to
Oct
31
June
1 to
Sept
30
All Year
1x/month
All Year
2x/month
April 1 to
Oct 31
1x/month
April 1 to
Oct 31
2x/month
March 1
to Nov 30
2x/month
June 1 to
Sept 30
2x/month
Alabama AL X X
Alaska AK X X
Arizona AZ X X
Arkansas AR X X
California CA X X
Colorado CO X X
Connecticut CT X X
Delaware DE X X
Florida FL X X
Georgia GA X X
Hawaii HI X X
Idaho ID X X
Illinois IL X X
Indiana IN X X
Iowa IA X X
Kansas KS X X
Kentucky KY X X
Louisiana LA X X
Maine ME X X
Maryland MD X X
Massachusetts MA X X
Michigan MI X X
Minnesota MN X X
Mississippi MS X X
Missouri MO X X
Montana MT X X
Nebraska NE X X
Nevada NV X X
New
Hampshire NH X X
New Jersey NJ X X
New Mexico NM X X
New York NY X X
North Carolina NC X X
North Dakota ND X X
Ohio OH X X
Oklahoma OK X X
Oregon OR X X
Pennsylvania PA X X
Rhode Island RI X X
South Carolina SC X X
South Dakota SD X X
Tennessee TN X X
Texas TX X X
Utah UT X X
Vermont VT X X
Virginia VA X X
Washington WA X X
West Virginia WV X X
Wisconsin WI X X
Wyoming WY X X
District of
Columbia DC X X
Guam GU X X
Puerto Rico PR X X
Virgin Islands VI X X
© 2011 Fannie Mae. Trademarks of Fannie Mae. Page 6 of 13 10/12/2011
This document is incorporated by reference into the Fannie Mae Servicing Guide. HomeTracker
®
is a trademark of HomeTelos™
.
All rights reserved.Winterization
Winterizations are required to be completed within 7 calendar days of the property being reported vacant
or winterization season starting, which ever comes later. Servicers will be held accountable if required
timeframe is not met. Properties should be winterized only once. The servicer must submit bids when the
property needs to be re-winterized if the initial winterization is deemed to be no longer effective.
Winterizations include shutting off the water source at the curb. If not possible to shut off at curb, then
shut off at the main interior water supply. Winterization also includes a complete draining of all plumbing
and heating systems and system check. For properties where water services and utilities are shared with
other units, such as condominiums, the utilities should be maintained. The water service should also be
maintained if needed for wet winterizations. Fannie Mae will not approve de-winterization.
Winterizations are allowed during any month of the year in the following state:
AK
The following states must be winterized from September 1st to April 30th:
CO, CT, IA, ID, IL, IN, MA, ME, MI, MN, MT, ND, NE, NH, NJ, NY, OH, OR, PA, RI, SD, VT, WA, WI,
WY
The following states must be winterized from October 1st to March 31st. Properties below 2000 ft in
elevation may be winterized at the servicer’s discretion. Servicers will be held accountable for
properties below this elevation which are not winterized and experience freeze damages.
AL, AR, AZ, CA, DC, DE, FL, GA, KS, KY, LA, MD, MO, MS, NM, NC, NV, OK, SC, TN, TX, UT, VA,
WV
Winterizations are not required in the following states and territories:
HI, Guam, Puerto Rico, Virgin Islands
Refer to Table C: WINTERIZATION SCHEDULE.
© 2011 Fannie Mae. Trademarks of Fannie Mae. Page 7 of 13 10/12/2011
This document is incorporated by reference into the Fannie Mae Servicing Guide. HomeTracker
®
is a trademark of HomeTelos™
.
All rights reserved.Table C: WINTERIZATION SCHEDULE
Winterizations
State Abbreviation
All Year
Sept 1 to
April 30
Oct 1 to
March 31 Not Required
Alabama AL X
Alaska AK X
Arizona AZ X
Arkansas AR X
California CA X
Colorado CO X
Connecticut CT X
Delaware DE X
District of Columbia DC X
Florida FL X
Georgia GA X
Guam GU X
Hawaii HI X
Idaho ID X
Illinois IL X
Indiana IN X
Iowa IA X
Kansas KS X
Kentucky KY X
Louisiana LA X
Maine ME X
Maryland MD X
Massachusetts MA X
Michigan MI X
Minnesota MN X
Mississippi MS X
Missouri MO X
Montana MT X
Nebraska NE X
Nevada NV X
New Hampshire NH X
New Jersey NJ X
New Mexico NM X
New York NY X
North Carolina NC X
North Dakota ND X
Ohio OH X
Oklahoma OK X
Oregon OR X
Pennsylvania PA X
Puerto Rico PR X
Rhode Island RI X
South Carolina SC X
South Dakota SD X
Tennessee TN X
Texas TX X
Utah UT X
Vermont VT X
Virgin Islands VI X
Virginia VA X
Washington WA X
West Virginia WV X
Wisconsin WI X
Wyoming WY X
© 2011 Fannie Mae. Trademarks of Fannie Mae. Page 8 of 13 10/12/2011
This document is incorporated by reference into the Fannie Mae Servicing Guide. HomeTracker
®
is a trademark of HomeTelos™
.
All rights reserved.© 2011 Fannie Mae. Trademarks of Fannie Mae. Page 9 of 13 10/12/2011
This document is incorporated by reference into the Fannie Mae Servicing Guide. HomeTracker
®
is a trademark of HomeTelos™
.
All rights reserved.
Health and Safety
Cleaning Refrigerator or Stand Alone Freezer
The allowable reimbursement amount for cleaning includes the removal of all perishables from both the
refrigerator and freezer or stand alone freezer(s), in addition to wiping down of the appliance’s interior and
exterior.
Cleaning Toilet
The allowable reimbursement amount for cleaning the toilet should be used only when both waste is
present and when the property requires winterization. This allowable also includes cleaning with a toilet
brush and wiping down exterior. Fannie Mae will not approve bids to remove and cap toilets.
Cap Wire and Gas/Water/Sewer
The allowable reimbursement amount to cap bare wires should only be used when the electric meter is
present.
It is required the gas/water/sewer lines to be capped if the lines are uncapped or open regardless of utility
status.
Extermination
The allowable reimbursement amount for extermination should only be used to eliminate rodents, wasps,
hornets and bees with over the counter products. Multi-housing units can use allowable for roaches.
Fleas may only be exterminated when the infestation prohibits access to the property. Allowable is per
calendar year.
Note: Do not submit bids to replace damaged/missing handrails or outlet covers.
Debris
Servicers should consult their legal department prior to using any debris allowable. If bids are submitted
to Fannie Mae, servicers should provide acknowledgment in the comment section of the bid approval
from the servicer’s legal department to remove personal property. A cubic yard is defined as 3’ x 3’ x 3’ or
27 cubic feet and is measured by volume not weight or content.
Refer to Table D: DEBRIS TABLE.
Allowance for Debris Removal is Limited
Interior:
The allowable reimbursement amount for interior debris removal is restricted to raw garbage and
perishable items. Examples of interior debris that is not authorized to be removed include:
Gas cans
Propane tanks
Pressurized tanks
Household cleaners
Miscellaneous
pesticides
Pool chemicals or cleaning
agents
Antifreeze
Toiletries
Medicine/syringes
Paint thinner
Canned goods
Paint cans
Oil
Alcohol
Tires
Exterior:
The allowable reimbursement amount for exterior debris removal is limited to raw garbage, perishable
items, and to non-personal property items that are in the way of the lawn maintenance. Non-personal
property items are defined as items that have been exposed to the elements and are not intended for
exterior use. Examples of non-personal property items include:
Fallen tree limbs Refrigerator/freezer
Broken or deteriorated furniture
Note: Items located inside outbuildings or garages are not considered exterior debris.
Move Exterior Debris
Fannie Mae allowable for moving exterior debris is limited to items considered to be personal property
which obstructs lawn maintenance. These items should be moved to a secure location such as a shed,
garage or interior of the property.
Examples of personal property not to be moved include:
Picnic tables
Swing Sets
Trampolines
Dog houses
Bird baths
Patio furniture
Grills
Stacked bricks
Fireplace wood
Vehicles
Building materials
Note: Trash receptacles must be moved out of street view after all contents have been removed.
Examples of items to measure cubic yards:
Table D:
DEBRIS TABLE
This table is used as a general guide when considering the volume of debris.
Quantity Item Cubic Yard
5 Automobile tires 1
1 Book case (5 shelves) 2
1 Couch 2
1 Dresser or chest of drawers 2
1 Dryer 1
6 Full trash bags 1
4 Lawn or dinning chairs 1
1 Mattress and box spring 4
1 Office desk 2
125 Paint cans (one gallon) 1
1 Recliner 1
1 Refrigerator 2
2 Trash cans 1
1 Washing machine 1
Bids to address unusual items or extremely heavy items that can not be converted to cubic yards should
be submitted through the bid process prior to removing.
Roof Issues
When an active leak is discovered, appropriate measures must be taken to preserve the property by
stopping the leak.
Do not submit bids for inactive leaks
Do not patch/repair any detached structures
Do not tarp flat roofs
© 2011 Fannie Mae. Trademarks of Fannie Mae. Page 10 of 13 10/12/2011
This document is incorporated by reference into the Fannie Mae Servicing Guide. HomeTracker
®
is a trademark of HomeTelos™
.
All rights reserved.The following information must be included with any roofing bids submitted:
Dimensions of the affected area
Location of damage
Dollar amount of bid to complete work
Full photo documentation including interior and exterior photos where leak is present
Whether an insurance claim has been filed
Roof Replacement
Fannie Mae does not encourage replacing roofs prior to sale, but in cases where the servicer determines
that this is necessary, a first and second bid is required simultaneously.
Patch/Repair (active leak only)
When the cost to patch/repair a roof exceeds the allowable, a bid to tarp and a bid to patch must be
submitted simultaneously, unless it is a flat roof which requires only a bid to patch. Bid for patch/repair
can include the seal/coat and repair of chimneys.
Chimney Caps
When a chimney cap is not present a maximum quantity of two chimney caps may be placed.
Additional Service Items
Sump Pumps
If an existing sump pump is used to keep basements or crawl spaces dry, check the sump pump to make
sure it is operational. The sump pump should be plugged into a power source; the electricity to the
property should be turned on and transferred into the servicer's name. If the sump pump is inoperable,
the servicer may use the allowable to repair or replace the pump, plumbing or electric lines to the sump
pump. Do not submit bids to dig a crock and install a sump pump if one did not previously exist.
Utility Transfers
If utilities are shared or are required to operate a sump pump, servicers must transfer the utilities into their
name during pre-foreclosure proceedings within 10 calendar days of initial securing. The allowable
includes verification utilities are transferred/connected/disconnected, wait time to meet with utility
company, if necessary and verification that the sump pump is operational.
Water is required to be shut off curbside, regardless of winterization. If not possible to shut off at curb due
to damages, then shut off at the main interior water supply. Bids are required to repair shut offs curbside.
Vacant Property Registration (VPR)
If local ordinance requires a vacant property to be registered, servicers should follow requirements.
Reimbursement will be provided only for the registration fee.
Snow Removal
Properties are allowed to be cleared of snow and ice during the winter season for access and when
required by local ordinance. When submitting bids, please include all of the following information:
Reason for snow removal (either access or local ordinance only)
Dimensions of right of ways to be cleared
Location to be cleared (driveway, sidewalk, etc.)
Height or approximate thickness of snow or ice
Method of removal (shoveled, plowed, products to be used)
© 2011 Fannie Mae. Trademarks of Fannie Mae. Page 11 of 13 10/12/2011
This document is incorporated by reference into the Fannie Mae Servicing Guide. HomeTracker
®
is a trademark of HomeTelos™
.
All rights reserved.© 2011 Fannie Mae. Trademarks of Fannie Mae. Page 12 of 13 10/12/2011
This document is incorporated by reference into the Fannie Mae Servicing Guide. HomeTracker
®
is a trademark of HomeTelos™
.
All rights reserved.
Address Posting
Allowable reimbursement amounts should be used only in cases where house numbers are missing and
to meet local code.
Emergency Repairs
The emergency allowable should be used only when an immediate response is necessary to prevent
damage. Example: Pumping a basement. Gradual or progressive deterioration or lack of property
maintenance does not qualify as an emergency.
Most items that have been previously considered as an emergency repair have been addressed in the
allowable matrix and guidelines. The following are examples when the emergency allowable should not
be used:
Thawing
Cure code violations
Cases where damages have already occurred
Cases where property is already exposed to the elements
Additional Information
Code Violations
If code violations are issued to a property, the servicer must submit the following:
A bid to correct the code violations if amounts exceed or is not included in Fannie Mae’s allowable
A legible copy of the violation
A notation in comments section if any fines or liens are accumulating
Properties in Bankruptcy
Servicers should consult with their legal department when addressing preservation issues for vacant
properties in bankruptcy. For each reported vacancy during bankruptcy, servicers must notify the debtor’s
attorney and ask to proceed with property preservation.
Properties in Loss Mitigation
Servicers are reminded of their responsibility to maintain vacant properties. Should a servicer choose not
to perform maintenance during loss mitigation activities, for each reported vacancy, the servicer must
contact the borrower or a legally responsible party for the mortgage note to confirm that the property is
being maintained.
Discoloration
Any discoloration identified at the property must be submitted to Fannie Mae within 10 days of discovery.
Do not submit bids to test discoloration, remediate or install dehumidifiers. Only submit bids to treat
discoloration. Bids must include the following:
Source or cause of the discoloration (moisture is not a valid cause or source)
Area affected in square feet
Exact method of treatment to be used
Specific location of the discoloration (if in garage/shed note if it is attached to the main dwelling)
Demolition or Condemnation
If a servicer receives notification from a municipality regarding legal proceedings about the possible
demolition or condemnation of a Fannie Mae preforeclosure property, certain steps should be taken to
ensure that Fannie Mae’s interests are protected. All of the following information should be uploaded into
a Property Preservation Request:
Provide copies of demolition notices and violations from the municipality Provide two demolition bids and two repair bids simultaneously
Attach actual inspections including photos labeled
Respond to all of the following information in attachments:
o List of ALL inspections completed including inspection completion date and occupancy
status.(List should look like: Occupied 07/25/2011, occupied 08/26/2011, and vacant 09/22/2011)
o Date of last occupied
o Date of property first time vacant.
o Date property was initially secured after vacancy
o Date damages were discovered
o Date of loss (if different from date of discovery)
o Date of winterization and if system held pressure
o Eyeball estimate of damages
o Cause of the damages
o Status of Foreclosure sale (if sale is set, provide date)
o Date insurance claim was filed and status of insurance claim
o If insurance claim was not filed or denied, explain why and attach denial letter
o If insurance funds were received, advise dollar amount of funds received and if Report of Hazard
Insurance Loss (Form 176) has been submitted to hazard_loss@fanniemae.com
o Date the servicer first received any notice the property was either being condemned or
demolished.
o Hearing information:
1. Date and time of hearing
2. Does the servicer have counsel to represent them at the demolition hearing?
3. If the hearing has passed, was servicer’s counsel present?
4. What was the outcome of the hearing? Example: Demolish Order has been approved, city
will proceed or hearing has been rescheduled at counsel's request.
5. Has the city obtained the permits for the demolition? If so, when?
6. What is the scheduled date for demolition to begin?
o Provide city code enforcement name, phone number and e-mail address and other relevant
contact information
Note: Servicers should be prepared to submit an interior/exterior BPO and full loss analysis upon
request. Property Cost Management will review and forward the all necessary information to the National
Servicing Organization, who will then provide direction to the servicer.
This document is intended for use when considering preservation of vacant properties and the mortgage
loan is delinquent. If servicers have questions about this process or about access to HomeTracker,
contact the Property Cost Management team at property_preservation@fanniemae.com
If the mortgage loan is current or the property is occupied, servicers should contact their Servicing
Portfolio Manager, Servicing Consultant, or the National Servicing Organization’s Servicer Solution
Center at 1-888-FANNIE5 (888-326-6435) with any questions.
© 2011 Fannie Mae. Trademarks of Fannie Mae. Page 13 of 13 10/12/2011
This document is incorporated by reference into the Fannie Mae Servicing Guide. HomeTracker
®
