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To Speed Short Sales, Work With Fannie Mae from the Start

Problems getting action on short sales aren’t in the news as much as they were a few years ago but they remain a stumbling block to business and efforts to speed up processing are still needed. Fannie Mae is hoping some changes it launched this week will help it continue a process it started earlier this year to make it easier for you to at least get action on your short sale offers.


Under these changes, Fannie is asking you to submit your short sale offer to it at the same time that you submit it to the company that’s servicing the mortgage. By submitting your offer to the two companies simultaneously, you enable Fannie, if it’s the investor on the mortgage, to start taking some of the steps needed to get the application processed. These steps include ordering an appraisal and broker price opinion and reaching out to the servicer to help keep the processing on track. Also, if the servicer needs Fannie to review the application as the investor, Fannie can start doing that without delay.

Beyond these process changes, the company has added pages of information on its website for the listing agent to help remove much of the guesswork from the process. What are acceptable closing costs? What sellers are eligible for a short sale? What steps are needed to get a recommended list price? And so on.

These steps come on top of changes the company rolled out a few months ago that were centered on the company’s online submission and escalation processes. That escalation process was intended to give you a direct line to the company if you weren’t getting answers from the mortgage servicer.

The changes apply to Fannie Mae loans, and that’s a pretty big part of the market, so if they result in quicker processing, they could have a material impact on the short sale market as whole.

To help you learn more about these and Fannie’s previous short-sale changes, Heather Elias, NAR’s director of social business practice, sat down with Jane Severn of Fannie Mae for a 4-minute video interview. You can access that above. Severn is with Fannie Mae’s credit loss management division.

Robert Freedman

Robert Freedman is manager of multimedia communications for the NATIONAL ASSOCIATION OF REALTORS®. He can be reached at rfreedman@realtors.org.

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Comments
  1. Linda Carol Johnson

    This is great information,how can we find out if Fannie Mae is the serviced?

  2. Great information you shared! This will speed up the process. Shall we say 15-30 days?
    Thanks a lot for sharing.

  3. Vaughan Brookshaw

    Does Freedie Mac have or planning a similar process.

  4. Clockbird

    What a joke, one hand does not know what the other is doing and its nothing but a big joke. Waste of Tax payers money giving it to FNMA was a joke and giving FNMA the power is a Joke. Time for Americans to take over and abolish this company for good.

  5. Where in this entire world is an E&O insurance carrier who will insure an agent who
    “… is, or has has been involved in a short sale, foreclosure sale, cash for keys…”
    Every underwriter in the United States has stopped insurance. Think you are insured, look again.

  6. Short Sales are a great initiative to realize good value from underwater mortgages and give borrowers an opportunity to writeoff their debt and swift timelines to close the sale.

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