Posted on Nov 20, 2012 in Roseville and Sacramento Short Sale FAQs

Hi this is Mark Peek with Keller Williams Real Estate, your short sale specialist in Roseville and Sacramento. I wanted to talk today about Fannie Mae, the largest investor of real estate mortgages out there. What are some of the things that are going on right now with Fannie Mae-owned short sales? What’s going on right now with Fannie Mae more than any other investor is that Fannie Mae has made a decision to counter the offers higher than their market value on short sale transactions. In many cases, it may be 10-25% above fair market value. Fannie Mae is doing this because they’re trying to mitigate their losses, but what are the justifications for this?

If they foreclose on the property, they can list the home for sale and they can offer a financing alternative called Home Path. With Home Path, no appraisal is required, so they can ask a very high price for their property. This gives them the advantage because they can ask for any amount of money for the home that they desire as long as the market is willing to pay it. If the market is willing to pay it and use Home Path, then they can sell it. The only problem is that there are many Home Path properties out there that are listed too high and are sitting on the market. It’s not necessarily a great decision, in my opinion, with Fannie Mae.

There is a way around this, so if you have a Fannie Mae mortgage I would like you to give us a call. Just because you get a counter offer for a high amount on your short sale doesn’t mean you have to settle for that value. At the end of the day, Fannie Mae got bailed out by the federal government and by taxpayers, so we shouldn’t have to accept this kind of behavior. They’re going to put us right back in the bubble that started this whole thing. If you have any questions on your Fannie Mae mortgage give me a call, we’ll look at your situation and determine the best way to get your short sale approved.

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