On August 15th, Freddie Mac announced a new policy for payment of association assessments in States with association lien priority.
Under the new policy, Freddie Mac is setting aside its prior 6 month limit on payment of association assessments, pre-foreclosure sale, in favor of a new reimbursement schedule. Mortgage servicers paying association assessments in priority lien States to protect the position of the first mortgage may be reimbursed the lesser of:
- The actual amount in regular assessments advanced by the servicer to the association
- The maximum amount in regular assessments, per the declaration or bylaws, that take priority over the first mortgage
- The maximum amount in regular assessments that, under State law, take priority over the first mortgage
Associations should be aware of this new reimbursement schedule that may permit recovery of additional assessments, particularly in States that have recently amended association priority lien statutes.
Concurrently, Freddie Mac also announced new property inspection guidelines, including a new requirement that servicers order monthly interior inspections for properties that are confirmed to be abandoned. Servicers are also granted additional flexibility to inspect properties pursuant to State requirements or local ordinance.
To read Freddie Mac Bulletin 2013-15, click here.
