How Fannie Mae Rejects Short Sales

I started to see problems with Fannie Mae short sales in the middle of the fall last year. Up until that time, I had no problems with Fannie Mae short sales except to the extent that sellers had to be in default and Fannie Mae would foreclose if the foreclosure date was closer than closing the short sale, but the fact remained that Fannie Mae was cooperating.

Now that Fannie Mae has changed its procedures and allows short sellers to be current as long as hardship is imminent, it does not seem to be so cooperative. The biggest problem is Fannie Mae's demanded sales price. The prices are too high. Too high to justify an appraisal. When a short sale falls apart because the buyer can't get a loan because the appraisal is too high, then the home goes to foreclosure. This seems to be Fannie Mae's answer to short sales: to deny short sales without coming right out and rejecting them. It simply prices them too high.

Agents across the country have banned together and formed a petition. If you would like to sign the White House petition, you can go to Fannie Mae Petition to act responsibly and ethically.

More Articles by Elizabeth Weintraub:

• How to Do an FHA Short Sale
  
• Different Kinds of Short Sales
  
• How To Short Sale in California

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_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}