Submitting an Accepted Contract
Listing agents representing a homeowner on a Fannie Mae short sale should submit the "highest and best" contract with terms acceptable to the homeowner to Fannie Mae and to the mortgage servicer simultaneously. By submitting the accepted contract to Fannie Mae and the mortgage servicer simultaneously, Fannie Mae can proactively work with the mortgage servicer to facilitate faster communications and decisions.
Please note that the process for submitting an accepted contract is different depending on which mortgage servicer services the homeowner's loan.
The instructions below apply only to loans that are NOT serviced by one of the following mortgage servicers:
- Bank of America
- Chase
- CitiMortgage
- Community Loan Servicing LLC
- LoanCare
- Nationstar Mortgage LLC d/b/a Mr. Cooper
- PNC Mortgage
- RoundPoint
- Shellpoint Mortgage
- SunTrust Mortgage, Inc.
- US Bank
- Wells Fargo Home Mortgage
If your client's loan is serviced by a servicer listed above, click here
What's required before submitting a contract with terms acceptable to the homeowner?
- Use Fannie Mae's loan lookup tool to determine if your client's mortgage is owned by Fannie Mae.
- Obtain permission to represent the homeowner in the short sale by having them sign the Fannie Mae Homeowner Authorization form.
- Collect financial information and contact the mortgage servicer to determine your client's eligibility for a short sale.
- Request list price guidance* from Fannie Mae using HomePath Short Sale portal.
- The property must have been listed with an active status on a multiple listing service (MLS) for a minimum of five consecutive calendar days, including one weekend (i.e., Saturday and Sunday).1
- Check all contracts for completeness, acknowledge receipt of contract, and assist homeowner in selecting highest and best contract for submittal.
- Submit "highest and best" contract with terms acceptable to the homeowner to your homeowner's mortgage servicer. Provide fully executed purchase contract and estimated net sheet or HUD-1 settlement statement.
- Submit the same "highest and best" contract with terms acceptable to the homeowner to Fannie Mae using the Submit an Accepted Contract link on this site. Instructions to follow.
What documents will you need to submit a contract?
Before you submit an accepted contract, have the following documents ready to upload:
- Purchase Contract; and
- Evidence that the property was listed on an appropriate multiple listing service.
Things to Keep in Mind
- All short sales must be an "arms length" transaction between seller and buyer. All parties to the sale, including closing agent, must execute a Fannie Mae Short Sale Affidavit.
- Neither buyer nor seller will receive funds or commissions from the sale of property (except approved relocation assistance for the seller).
- All agreements and sale contracts must be disclosed to the mortgage servicer.
- All funds that change hands must be disclosed and approved by the mortgage servicer and shown on the HUD-1.
- A deed restriction will be in place that prohibits selling the property within 30 days (for any price) OR selling the property for more than 120% of the short sale price within 90 days.
- Seller must not remain in property as a tenant or later obtain title or ownership of the short sale property.
1 Note: If a property is located in an area that is not covered by an MLS, it must be advertised in a manner customary for that real estate market for at least five consecutive calendar days, including one weekend.