I know with FHA, they require the home be occupied (by owner) in order to consider a short sale offer. Is this the same for Fannie Mae? I could not find the requirements on their site.
FNMA does not have to be homeowner occupied, but they do closely examine the drop in value of property and the net to value (appraisal & interior BPO, both are required for FNMA) of any file that has to be sent to them to approve. I’ve never seen a file approved with anything less than 85% net to value, but that’s just in my experience.
Does the no less than 85% hold true to homes needing serious rehab?
A short sale property is sold As-Is. When it’s appraised & a bpo is completed they are supposed to value property on current condition.
So if the value on the property is coming back at $150,000 after an appraisal and an interior bpo, FNMA is going to expect to be receiving at minimum approx. $127,500 from the short sale.
Again, this is just in my experience.