I began noticing about nine months ago; confirmed with several other short sale Realtors and a law firm that does a lot of foreclosure defense and short sale negotiations. Have you also noticed Fannie has been countering offers at +/-125% of fair market value? I recently had one Fannie short sale were they countered at $215K and three weeks later changed their mind, reneged and recountered at $230K. The buyer met both counter offers and the FHA appraisal was ordered which came in at a fair market value of $210K. FANNIE REJECTED THE FHA APPRAISAL! One of their managers told me an FHA appraisal is only an opinion. I asked him, "than why do all the banks and investors require an appraisal"? Of course, he couldn't answer that questions. He also gave me his "BPO" comps and not a single one of them was a comp! What seems to be happening is Fannie is taking homes back and putting them in their Homepath program for +/-125% of market value. With Homepath properties there are no appraisals and from what I can determine Fannie arranges the financing. So, now we have some poor schnook who doesn't know any better buying an overpriced home, unappraised home that will take many years before having any equity. Last week, I had a conversation with a short sale supervisor at one of the major lenders I work with who has a friend that paid $460K for a Homepath home. He had it appraised on his own and it came in at about $400K. Please note Fannie reported profits of $17.2 billion in 2012. While their practices may be legal I would question their ethics. You can Google what I am saying and verify for yourselves, and I would like to hear if you have had similar experiences.