Fannie Mae sues Houston apartment borrower, seeks receiver over alleged default
Then the payments stopped, according to Fannie Mae. The lawsuit says the borrower failed to make its monthly debt service payment in April, May and June of 2026. On May 7, 2026, the loan servicer sent a demand letter over the April shortfall – a payment of $46,239.29 and a late charge of $1,471.91, for a total of $47,711.20, the filing states.
The payments were only half the story. Fannie Mae also claims the borrower missed a June 17, 2026 deadline to complete required repairs on the property, and never produced evidence the work was finished. Where those repairs touch fire, life or safety issues, the filing says, the miss counts as its own event of default.
Fannie Mae says it then accelerated the loan. A notice dated June 17, 2026 told the borrower the full balance was due, according to court papers. And once the defaults hit, the filing states, the borrower’s license to collect rent from the property automatically shut off.
For anyone servicing multifamily loans, the mechanic here is the takeaway. Fannie Mae leans on the loan documents themselves, saying the borrower agreed in advance – right in the deed of trust – to the appointment of a receiver in a default. The suit says that consent stretches far enough to allow a receiver to be named ex parte, meaning the borrower would not get a hearing first.
Fannie Mae is pursuing two claims: breach of contract, and specific performance to compel the receiver appointment. It also wants actual damages, interest, court costs and attorneys’ fees, according to the filing, and it has filed a separate motion asking for the receiver directly.
