Fannie Mae’s New Short-Sale Escalation Tool

If you’re a REALTOR® who has experienced difficulties dealing with inflated property valuations in conjunction with Fannie Mae short sales or other issues related to a Fannie Mae short sale, there’s good news. In response to an increased number of consumer complaints, Fannie Mae, based on input from NAR, recently rolled-out a new centralized web-based platform designed to enable agents to escalate short sale issues in a more productive manner. For more information, read the press release Fannie Mae issued yesterday. Through the new tool, agents will be able to open a case and receive confirmation that Fannie Mae is aware of their issue and actively working to achieve a mutually beneficial resolution.

To use the escalation tool, visit www.homepathforshortsales.com (or homepath.com and click on the “Short Sale” tab). There, agents will find information regarding the escalation process, along with a tab titled “Get Started Today,” which enables the agent to escalate a variety of issues directly to Fannie Mae’s dedicated short sale team.

According to Fannie Mae’s website, agents should use this tool to contact Fannie Mae about a short sale when:

• You are ready to list a property and need a recommended list price;
• You want to contest a value Fannie Mae has assigned to a listed property;
• You haven’t heard back from the servicer; or
• You have an issue with an offer currently under negotiation.

During the escalation process, agents will be prompted to upload specific documents depending on the issue raised. In cases of a valuation dispute, agents should be prepared to upload: (1) MLS data sheets for three to six sold comps with listing history and REALTOR® comments; (2) an appraisal or BPO; (3) a recent CMA report with photographs of comparable properties, descriptions and listing history; (4) an inspection report with color photographs of any areas in need of repairs; and (5) any contractor’s estimates obtained for needed repairs.

In creating this new escalation platform, Fannie Mae has again emphasized its commitment to preventing foreclosures by processing short sales in a more timely and transparent manner. However, keenly aware that each and every short sale establishes a future comp, Fannie Mae will continue to balance these objectives against its desire to stabilize pricing and maintain neighborhood property values.

Scott Drucker Scott M. Drucker, Esq. is General Counsel to the Arizona Association of REALTORS® (AAR). He serves as the primary legal advisor to the association. Scott oversees AAR’s Risk Management Committee, which includes professional standards administration for twenty of the state’s local REALTOR® associations, and the development of standard real estate forms. Please note that this post is of a general nature and may not be updated or revised for accuracy as statutes and case law change following the date of first publication. Further, this post reflects only the opinion of the author, is not intended as definitive legal advice and you should not act upon it without seeking independent legal counsel. To see more posts by this author, click here.