Dear Fannie Mae........

Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

fannie mae

.........if you don't want to do Short Sales then please quit wasting everybody's time pretending you do. On November 1st you implemented the new "streamlined short sale" guidelines. Read the new servicer guidelines here.


Determining the Market Value of the Property

  • Fannie Mae requires that the property valuation for a short sale be based on an interior and exterior inspection of the property which can be either a broker price opinion (BPO) or, if licensing requirements in the state dictate use of an appraisal for these purposes, an appraisal (performed in accordance with the Uniform Standards of Professional Appraisal Practice(USPAP). The property valuation must be dated or have been refreshed by Fannie Mae within 90 calendar days of the short sale approval

Evaluating Short Sale Offers

  • The property valuation is the basis for the determining the minimum net required (MNR) proceeds and list price guidance from Fannie Mae. The servicer can only approve a short sale if proceeds from the short sale meet or exceed the MNR. The servicer must document Fannie Mae's MNR in the mortgage loan servicing file. The MNR must be kept confidential and must not be shared with interested parties to the transaction (for example, the buyer, seller, or real estate agents).

From the Federal Housing Finance Authority:

  • These new guidelines demonstrate FHFA’s and Fannie Mae’s and Freddie Mac’s commitment to enhancing and streamlining processes to avoid foreclosure and stabilize communities,” said HFA Acting Director Edward J. DeMarco.

Well Edward, it all sounds great on paper but know that Short Sales are far more difficult now than they were prior to November 1, 2012.

Fannie Mae is now making getting a Short Sale approved very, very difficult. I guess they forgot to mention that even though it is now easier to qualify for a Short Sale it won't happen because Fannie Mae will only accept deals that are far higher than market value.

Why do you continue to keep agents in the dark about the value of the property? Why not sort out the price first and then let us do what we do to find a buyer. After all we are the experts when it comes to pricing and selling property.

Countering every contract we submit at far more than market value achieves nothing. And it's funny that this issue didn't exist until you decided to make Short Sales "easier".

And did you know that your servicers are giving us "approved" listing prices, based on your criteria, only to have you counter the price? We find a buyer at the approved price or higher and yet you, Fannie Mae, decide the price you gave us 30 days ago is no longer any good.

Here's a recent example of a failed Short Sale due to Fannie Mae's incompetence. You recently denied one of my Short Sales over price. We priced at $88,000 based on a full blown appraisal ordered by the servicer that was only 45 days old. Seemed like this price would be acceptable since it was also very much in line with market value. You countered at $125,000!! This over priced property now sits on the market. Maybe in 4 months time you will consider taking a deal at $88,000?

Sorry, Fannie Mae but your new  property valuation method is not working. Properties are not going to sell at the prices you want. So save us all a lot of frustration and time and just move straight to foreclosure. Why continue to make us go through the motions?

Short  Sales would not happen without hard working experienced agents pushing the deal forward. And that's a fact. Lenders, servicers, investors and the borrowers would all fail at getting the deal done. Yet you continue to crap on is.

Selling properties multiple times is not an efficient method of disposing of a non performing asset.

Fannie Mae please get your act together. The market is turning and we can see the light at the end of the tunnel. Let's work together to clean up the rest of this mess so we can all move towards a brighter future.

I call the new Fannie Mae Streamlined Short Sale process BS. Please get your act together while us agents are still willing to help you unload these bad debts. Is that asking too much?

Here's a good discussion on this issue over at http;// 


Posted by


Join Our Facebook Fan Page Check Us Out On Google+ Follow Us On Twitter


***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas


 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

 Copyright © 2017 | All Rights Reserved

Comments (30)

Jon Quist
Tucson's BUYERS ONLY Realtor since 1996

I have never had experience with Fannie regarding Short sales. The most recent SS I wrote up for my buyer involved Indy Mac, and they actually just let my buyer be substituted for one that had walked away. We close on 1/25/2013. A little more than a month from start to finish.

Fannie seems to like to foreclose. They seem to handle those just fine.

Dec 31, 2012 06:06 AM
Karen Steed
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton - Tallapoosa, GA
Associate Broker Haralson Realty

Hey Bryant - Why don't you tell us how you really feel about fannie mae? (just kidding) Love the link tag on the photo.  Have a Happy New Year!

Dec 31, 2012 06:17 AM
Meagan Mycroft
Better Homes & Gardens - The Masiello Group - Litchfield, NH

This is a great, TRUE, post! Love the way it was written, couldnt have said it any better myself!

Dec 31, 2012 06:26 AM
Sandra Paulow
Aspen Properties, Inc. - Pinetop Lakeside, AZ
REALTOR, Associate Broker, GRI, SFR

IMO - Fannie does not want to do short sales, they want the inventory.  That way they can sell the properties in bulk to investors and turn them in to rental properties.  Even the Fannie REO's are coming out above market value and then when they don't appraise, they try to blame the buyer and stick them for the EM and all the costs they incurred for their properties.  I don't care who the bank is or who owns the loan, they are all greedy pigs.

Dec 31, 2012 06:35 AM
Jeff&Grace Safrin
F.C.Tucker 1st Team Real Estate - Valparaiso, IN

Agreed Bryant = short sales were streamlined in 2008 when you talked to a real person on the phone at the lender loss mit. dept. and not equator system which IMHO prolongs approval times. Also, back then, you had a real BPO or appraisal done by a local licensed broker or appraiser and not someone geographically incompetent who gets the job because their bid was the lowest price.

as far as fannie mae - well the courts in our area are getting clogged with filings of bankruptcies (to stay foreclosure sherrif sales)  and taking up judges precious time even when the sellers properties have full list price offers on them...  these new guidelines of countering above market value are going to cost us all of us more in the long run when the judiial system is overwhelmed.


Dec 31, 2012 06:37 AM
Manny Rosa
Rosa Agency - Belleville, NJ
New Construction - Union & Essex Counties, NJ

Bryant - Well said and I agree 100%.  By instructing the servicer to counter above market value, it sets up the buyer's appraisal to come in under value (if the buyer even agrees to the higher price request).  This procedure is assinine.

Dec 31, 2012 07:18 AM
Travis "the SOLD man" Parker; Broker/Owner
Travis Realty - Enterprise, AL
email: / cell: 334-494-7846

Yep, had FM mess up a a sale on one property that had an agreed upon sales price & contract and a BPO to back that up. Since the BPO had been done by a member of my office (I didn't know about it and it was a couple of months prior), they had someone else do one that came back at $36,000 for a trashed mobile home. The 3 acres was worth about $15,000, but the trailer was worthless. It's still on the market....and will be!

Dec 31, 2012 07:51 AM
Vicki Watzlawick
CORE Realty (The Watz Team) - Algonquin, IL
Illinois Foreclosure Expert, The Watz Team

I agree Bryant!  Just a few weeks ago I had BOA counter  a SS at $275,000.  The buyer did not want to come up this high so they walked.  Well the buyer knew a friend interested in the same house and 2 days later we submitted another offer of $275,000 figuring a slam dunk!  They are getting and netting what they asked for.  After several weeks of stall tactics, I get a counter offer  from our negotiator stating they are countering at $291,000.  When asked why I was told that Fannie Mae changed their guidleines on Dec 1st.   I asked for a copy of those guidelines and never recieved them...and then poof the file disappears from Equator.  Something is definatley going on with Fannie and Freddie.  Now it looks like we miight see the Mortgage Debt Relief Act go by the way side as well.  Happy New Year!

Dec 31, 2012 10:13 AM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Happy New Year 

All our best to you and TLW

Bill & Brenda

Dec 31, 2012 11:11 AM
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

It's a GSE, a federal government managed and controlled enterprise, which by its very nature is doomed to fail regardless of their mission or administrators. Your illustrations not only apply to Fannie and Freddie but to all agency's of the federal government. 

Dec 31, 2012 03:36 PM
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Bryant, we agree!  If they really want to do short sales prove it with action!

Dec 31, 2012 11:30 PM
Ric Mills
Keller Williams Southern Az - Tucson, AZ
Integrity, Honesty, and Vast Real Estate Knowledge

That is right on point.  I too have seen exteme counters from Fannie, Freddie and other Banks.  it is like they think they can throw any price out there and get it.  Our policy is if they come back with an outrageous price we still try to sell it and will lower the price every 15 days till we get an offer.  If the Bank (investor) refuses this offer then we cancel the listing and walk away.  It is happening a lot more these days and looks to be a big challenge in 2013.  Hopefully they will wise up and let us professionals get the homes sold or everyone will walk away from Short Sales. 

Jan 01, 2013 12:36 AM
Dorte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Bryant,

Let me join your choir. I would quit doing short sales, if I did not like my clients so well and want to make sure this is seen through for them.

Jan 01, 2013 04:14 AM
Alan Grizzle
Chestatee Real Estate - Dahlonega, GA
Full Time Realtor, Lifelong Resident of Dahlonega

Anytime the goverment or a big bank says they are going to make things better look out! Things are about to get worse.

Jan 01, 2013 09:27 AM
Dana Basiliere
Rossi & Riina Real Estate - Williston, VT
Making deals "Happen"


I will let other folks have the short sales. I have had Fanny be reasonable on some of it's REO properties though.

Jan 01, 2013 11:50 AM
Thomas McCombs
Century 21 HomeStar - Akron, OH

Don't try to find logic in the FM operations activities. There ain't some.

We just have to submit the offers and see what happens. We hope enough of them close to make it worth our efforts.

Jan 02, 2013 02:47 AM
Larry Brewer - Benchmark Realty llc
Benchmark Realty LLc - Nashville, TN

Bryant - I would call this a rant. A well deserved rant, but a rant it still is. You know you can't trust anyone in the government to do something logical, it would be totally out of character.

Jan 03, 2013 09:46 AM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Homepath.  The only REO sitting around these days is Fannie Mae because it is overpriced.  They offer homepath which is appraisal free financing.  They know inventory is strapped in several key markets so they are pushing the limits.

Have been seeing this happen to Fannie Mae short sales for the last half of 2012 in my market.  Have had agents call me LIVID because of the BPOs I have done.  Their requirements on BPOs have gone insane also.  

I guess they want to go through the extra expense of the REO just to ATTEMPT to make a couple extra bucks.

Jan 03, 2013 08:38 PM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

We just had someone form FannieMae join to follow the conversations. We also have one of our members who has contacted NAR and the treasury department. They have a call next week to discuss this issue with FHFA. We are stirring up the pot to have this sorted out. So.....stay tuned.

If you have specific issues you want to get in front of the FHFA go here

Jan 04, 2013 02:56 AM
Paddy Deighan MBA JD PhD - Vail, CO
Paddy Deighan J.D. Ph.D

we have to apply  government logic to statements...if they say that something will be wasier, it will be more difficult and vice versa

Jan 07, 2013 04:16 PM