Inside Fannie Mae Short Sales: What Realtors & Investors Need to Know
When it comes to short sales, not all investors play by the same rules. If you’ve worked on FHA, VA, or Freddie Mac files, you know each one has its own quirks — and Fannie Mae is no excepti son. In fact, Fannie Mae shortales can feel like a completely different ballgame if you’re not familiar with how they operate.
At Crisp Short Sales, we’ve closed hundreds of deals with Fannie Mae over the years. Today, let’s unpack how their process works, what makes it different, and why having an experienced short sale processor in your corner can be the difference between closing or crashing out.
What Makes Fannie Mae Different?
While FHA and VA short sales run through government “waterfall” programs and Freddie Mac uses its automated Resolve system, Fannie Mae takes a more traditional approach. They rely heavily on their network of real estate agents to value properties and make decisions based on those numbers.
That means the broker price opinion (BPO) or appraisal carries a lot of weight — and if that value comes in high, getting your deal approved can become a real challenge. Unlike FHA (which has a strict 88% net proceeds minimum) or VA (at 84.05%), Fannie Mae does not publish a set percentage. Instead, their agents recommend what they believe the market will bear, and Fannie makes its call from there.
For FHA, VA, and USDA, the investor minimums are written in stone:
- VA: 84.05% of value
- FHA: 88%
- USDA: 88%
- Freddie Mac: Resolve system — fluctuates
Fannie Mae? Not so straightforward. Their requirements are determined by the agent assigned to the file and by internal review of that valuation. This flexibility can be helpful — but it can also feel unpredictable if you don’t know how to push back when a valuation is inflated.
If you’re handling a Fannie Mae short sale and the BPO comes in high, don’t panic. You can dispute it, but you’ll need more than just an opinion. Here’s what works best:
1. Photos that tell the story – Damage, deferred maintenance, and needed repairs should be documented clearly.
2. Comparable sales (comps) – Focus on properties in similar condition, not just nearby “move-in ready” homes.
3. Contractor estimates – Lenders take real numbers seriously. If a roof repair is $15K, show them.
4. Market feedback – If multiple buyers passed due to condition or price, that’s valuable evidence.
The key is persistence. Unlike automated systems, Fannie files are reviewed by people — which means your dispute package has a chance to make an impact.
A well-prepared Fannie Mae short sale can move smoothly, but here are a few things to watch for:
- Multiple valuation checks – Don’t be surprised if a second BPO or appraisal is ordered.
- Changing requirements midstream – Fannie may tighten net expectations if they feel the market has shifted.
- HOA dues or liens – Fannie won’t always approve additional costs outside net proceeds, so negotiations with HOAs or second liens need to happen in parallel.
The good news? With an experienced negotiator running point, these hurdles don’t have to derail your deal.
Why Agents & Investors Need Backup
If you’re a listing agent, you already know the workload on a short sale is no joke. Gathering documents, chasing lenders, fighting valuations — it’s enough to pull you away from doing what you do best: selling.
For investors, the frustration is just as real. You’ve got money on the line, but you’re at the mercy of a process that can stretch for months if not handled properly.
That’s wheres Crisp Short Sale comes in. We specialize in handling the heavy lifting — negotiating with Fannie Mae, assembling dispute packages, and keeping the file on track — all at no cost to you or your client. We only get paid by the buyer at closing.