How To Dispute A Fannie Mae Value On A Short Sale

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

Fannie mae homepath short sale

How To Dispute A Fannie Mae Value On A Short Sale

Hi folks. If you work Short Sales you know that one of the issues we have right now is Fannie Mae coming back with values that can not be supported by the market.

Inflated property values are the norm with FNNMA. They counter EVERY transaction with a very high price. You can count on it. If you are not prepared for this you can easily have your Fannie Mae HomePath Short Sale blown out of the water.

Since we know Fannie Mae is going to counter on price it is imperative that we can prove to FNNMA that the Short Sale Offer we have is "highest and best" and IS the market value for the short sale property.

So what do we do if we are listing a Fannie Mae HomePath Short Sale?

First, go to the Fannie Mae Loan Lookup Tool to verify that Fannie Mae is the investor for the loan you are getting ready to Short Sale. You will need a signed authorization to do this. Or the borrower can do it for you.

If the investor is Fannie Mae then go ahead and have your seller complete a Fannie Mae Borrower Authorization Form. You will need this later.

Now you have two choices.

  1. Ask Fannie Mae to give you pricing before you list the property.
  2. Wait and find a buyer and submit the short sale knowing FNNMA will counter the deal.

I prefer the 2nd choice. Why? Because I really need showing history and listing history to help support my value. I'm not concerned with Fannie Mae giving me a listing price as that is what I do for a living. I am concerned that I may need to justify my contract price.

To do that I need data. Lots if it!!

You can dispute a Fannie Mae Value at Fannie Mae's HomePath Short Sale Site.

I've done this about a dozen times and was able to close on all of them at our contract price.

I use data from:

  1. MLS
  2. RPR (Realtor property resource) use a full report with stats for the area.
  3. Zillow. Why not? FNNMA does.
  4. Tax records
  5. Private sales
  6. List history (FNNMA requires the property to be active on the market at least 7 days with 2 of them being over the weekend)
  7. Showing history with agent feedback

Overwhelm them with data that supports your pricing. My experience is that as long as you can prove your case they will eventually agree. I've done this numerous times and all were successful. My average dispute is roughly 25 pages long including a cover letter explaining what we did to price, market and sell the property. 

You can also dispute value at time of listing through  Fannie Mae's HomePath Short Sale Site. And be sure to enter your offer details in Homepath as soon as you send the Short Sale Submission to the servicer. That way FNNMA will monitor the transaction and keep it moving forward.

So don't let a high value from Fannie Mae derail your deal. Expect it and start preparing for the Fannie Mae Value Dispute at time of listing. I hope this helps.

Fannie Mae HomePath Short Sale Quick Links

  1. Fannie Mae Loan Lookup Tool
  2. Fannie Mae Borrower
    Authorization Form
  3. Short Sale Affidavit
  4. FAQs
  5. Contacting Fannie Mae about
    an Active Short Sale Fact Sheet
  6. Listing Agent Checklist
  7. Report potential fraud on a
    Fannie Mae short sale
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***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.

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Comments (41)

Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Thank you for the info.  It is helpful when we work with them.

Oct 18, 2013 02:32 AM
Anna Banana Kruchten CRS, CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ

Bryant lost your blogging mojo?  You're busy working out and getting in shape!  Great info as ususal.  We've had a bear of a time with a couple fannie's this past 8 months and even with attorney involved they didn't fly.  We did a lot of what you suggested and looks like there is  a little more we could have tried.  For the most part shorts are way down in my area and we're back to traditional sales. Thankfully.

Oct 18, 2013 02:38 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I see so many short sales going way under market on "Pocket Listings" I am glad to see someone questioning the offers.  I have done both ends, but it does not happen on most transactions and my buyers are highest and best.

Oct 18, 2013 03:16 AM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

They always push back, so we need to have our facts in order. It's just part of the Fannie Mae game, sadly. Love the post! 

Oct 18, 2013 03:17 AM
Robert Hicks
United Country River City Realty - Savannah, TN

Thanks for the info, looking forward to giving it a try...All the BEST sir...

Oct 18, 2013 04:46 AM
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Bryant - just goes to show why you are the #FNMAShortSaleExpert!  Clearly you've done loads of these and know all the ins and outs of Fannie Mae Short Sales!

Oct 18, 2013 04:54 AM
Jim McCormack
Nashville Short Sale Specialist - Jim McCormack - Edge Advantage Realty, LLC - 615-784-EDGE (3343) - Murfreesboro, TN
Nashville Short Sale REALTOR - Stop Foreclosure

Great post.  Thank you for taking the time to put this all together.  Unfortunately, even the most convincing FNMA valuation disputes don't work.  I submitted almost 2 years of MLS History along with a full blown appraisal on a house and FNMA still demanded $69K higher than the appraised value after the dispute.  They wanted $115K more than the appraised value before the dispute.

Oct 18, 2013 07:18 AM
Travis "the SOLD man" Parker; Broker/Owner
Travis Realty - Enterprise, AL
email: / cell: 334-494-7846

Thank you for the list of things to do, if I need to in the future!

Oct 18, 2013 07:32 AM
Jimmy Faulkner
Florida. Homes Realty & Mortgage - Wantagh, NY
The Best Of St. Augustine

A dynamic post with information that is most needed in these times. I am going to follow your ways of doing these sales and I feel it will be of major help to me. Thanks!

Oct 18, 2013 09:28 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

There are times when FNNMA will not budge. Don't panic. Just place the property back on the market and work the price down again as needed. The 2nd submission or even the 3rd submission may be the charm.

Just keep pushing!!! They WILL do the short sale as long as you keep moving forward.

And of course be sure the seller knows of the issues with FNNMA at time of listing.

Oct 18, 2013 07:28 PM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

By the way, a rep from FANNMA sent me an email thanking me for the article. They really do want to help.

The investors and lenders monitor the site to keep up with industry changes and issues.

If you  have any issues with a short sale just post the details on and chances are the lender will reach out to you to get it sorted out. It's the main reason the site was created.

Oct 18, 2013 07:31 PM
Grace Cowins
Easy Street Realty - Snellville, GA
Grace Cowins

Thanks,great information.



Oct 18, 2013 08:25 PM
Linda Remington
M. C. Real Estate - Lodi, OH

Think I will bookmark this blog.  Overwhelming them with info didn't always work, but it's helpful to get it to the right decision maker.  Thanks!

Oct 18, 2013 10:52 PM
Lori Mode
The Mode Real Estate Group - Elk Grove, CA
Real Estate Made Simple

Bryant, thanks for the info.  We are in the process of 2 value disputes with FNMA right now and are going through the process you described.  It is unfortunately a long process sometimes...we have had one that has had to go back on the market 3 times, hopefully this time it will work!

Oct 18, 2013 11:43 PM
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

I'm experiencing the same thing as Lori in #35. I've gone to Fannie Mae's website to dispute a short sale value, dumped a boatload of facts and supporting documents on them, and they didn't care one little bit.

I fought and fought and fought and finally, finally, they said OK, we could list at the price I wanted and the price it would sell at. It sold a 4th time. We brought the offer to Fannie Mae and they ran a new BPO and said no, they want the original price they have always wanted!

Oct 19, 2013 12:23 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

This was great information to have! Thanks for the post.

Oct 19, 2013 08:13 AM
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Bryant we went through this with short sales for 4-5 years, now we let other agents waste their time.

Oct 22, 2013 03:37 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Hey Bob. Let's co -list them. No need to walk away. We'll split it. You list and I'll work with the seller and lender.

Always willing to help if you want.

Oct 22, 2013 07:27 AM
John Juarez
The Medford Real Estate Team - Fremont, CA

I remember when short sales were such a large part of our market that you eliminated a substantial source of business if you refused to do them. Now I see so many agents believe that short sale are beneath them.

Not for our Team! The trouble is that rising S.F. Bay Area prices have severely reduced the number of short sales coming to market.

Good for the homeowners. Now all they have to do is make up the missed payments and penalties to keep out of foreclosure. Many will still have to sell.

One door closes and another opens.

Thanks, Bryan, for the good info.


Nov 17, 2013 12:15 PM
Norma Coppley
Keller Williams Realty - Palm Harbor, FL

Very Helpful!  Thanks

Nov 20, 2013 06:50 AM