Fannie Mae Short Sale Requirements

The information contained herein is off of Fannie Mae’s HomePath for Short Sales website.

The Lender/Servicers Responsibilities in a Short Sale

The mortgage servicer handles all borrower interactions and the borrower qualification process for a short sale. If a short sale offer meets Fannie Mae guidelines - including an acceptable price, then certain servicers are allowed to approve and close the transaction on Fannie Mae's behalf. If the offer does not meet Fannie Mae's guidelines, a servicer can submit the offer to Fannie Mae for review to determine if the offer is acceptable.

Under Fannie Mae Guidelines, what can we expect from my client's servicer after we make a short sale offer?

  • Acknowledge receipt of a short sale offer within three business days
  • Notify the borrower within five business days if any information is incomplete
  • Send an evaluation notice or notify the borrower that the offer is still under review within 30 days. If the offer cannot be fully evaluated within 30 days, servicers must update the borrower on the status every week
  • Let Fannie Mae know if a short sale evaluation is taking longer than 30 days

What are acceptable and unacceptable short sale transaction costs?

  • Real estate sales commission customary for the market, not to exceed 6% of the sales price of the property
  • Real estate taxes and other assessments prorated to the date of closing
  • Typical and customary local and state transfer taxes and stamps
  • Title and settlement charges typically paid by the seller
  • Seller's attorney fees for settlement services typically provided by a title or escrow company
  • Wood destroying pest inspections and treatment when required by local law or custom
  • HOA fees that are past due if applicable

What are unacceptable short sale transaction costs?

  • Fees paid to a third party to negotiate a short sale with the servicer
  • Real estate sales commission paid to the borrower or the purchaser
  • Buyer's discount points or mortgage loan origination costs
  • Taxes paid on the HUD-1 Settlement Statement that are for a post-closing period

Protect Your Interest by Being Represented By a Professional Broker With Over Thirty Years of Experience Working Directly With Homeowners.   NOT BANKS.  We Get Results!

As Real Estate Professionals with Metro Brokers and RE/MAX, we have worked with hundreds of homeowners facing similar situations.  Our expertise in the areas of Short Sales and Foreclosures will provide strategies that will increase the probability of a successful outcome.  And our ready supply of well qualified buyers and legal team partners will insure that we get to closing.

We understand that this is an awkward and undesirable situation; however we can assure you that as your Broker it will be handled with the utmost sensitivity and confidentiality.  Please feel free to call or email us to arrange a personal meeting.  770-623-3313 or

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