Fannie Mae and Freddie Mac are now dictating market time. Short sales that are Fannie Mae or Freddie Mac loans must be active in the MLS for five days, including one weekend period, before an offer can be accepted by the seller.
Read the article. http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id...
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What you suggest is to allow the fox to "reasonably watch the chicken house. The government screws everything up that they try to regulate or their own personal interests get in the way of the original well-intended objectives. Too much regulation is not a good thing either. It cripples business which leads to a poor economy which leads to loss of jobs which leads to .......The government is NOT the answer to everything.
@ Harry: Sorry, I have to strongly disagree. The government has way too much power now and to give them even more is absurd and ridiculous. I agree with rules Harry, but only those that make sense. If this is to just regulate the dishonest real estate agents out there, it is not acceptable in my book.
Most agents list the homes at the best market value. We try and take the best and highest offers as well. We do try and do what is best for both our client, the seller and their lenders, the lienholders. These properties still belong to the sellers and they should have the right to accept or reject any offer on their own, and not be dictated by the government. I was born in America, the free, and I will damn well fight to keep it that way :) Regulations on top of regulations do squat to get rid of the bad apples in this industry. It will be up to us to make sure we keep our industry honest! Have a great night!
Apparently, there is little data here and the subject goes to the heart of frustration for those who think bankers walk on water and those who think all gov't rules should be erased. I'd hoped for some facts, which actually since FNMA and FHLMC are now Fed entities, I feel they owe us/the taxpayers in their "seemingly" arbitrary edicts. I don't see the "Oh yeah? I'm right and your wrong" as being helpful, but feelings seem to be hot on the subject. I'm resigned to this as another wrinkle in the way things are controlled and run in the U.S. right now, unfortunately.
I did not see anything that said that the same dishonest broker can't wait 10 days and tell his seller that his $30K less offer is the best - the seller doesn't care and the bank has no legal right to interfere, right? So, how many honest brokers and sellers and buyers will walk away from short sales while simply making a minor change to dishonest operations? Heck, disallow short sales and you'll get rid of ALL the dishonest brokers/sellers/buyers in short sales. I am still convinced that this was another half-baked "solution" with no basis in fact - nothing said here really indicates otherwise. It still seems that FHA appraisers usually do a decent job of getting the value of a property right and instead of making up values starting with often bad BPO's (or their FMV database) is not the way to fix the market or treat the taxpayer or the homeowner. Did I miss some other real solution or information?
AMEN Harry. Good post. I too find myself agreeing with Joes posts and often times read Ron's posts and see his point too. There certainly needs to be more common sense and middle ground and more rules just for the sake of rules wont accomplish that.
Agreed Wayne, I believe the majority of agents want the same thing. They want to be able to present a fair offer to these institutions and get a fair answer. FNMA needs to let the agents do what they do best, sell properties and send the offer to FNMA for their review. If FNMA would simply establish if the borrower qualifies for a short sale and then review the offer compared to an appraisal, it is almost guaranteed that they will not get scammed or approve short sales that are low ball offers. Instead they have miles and miles of red tape and rules that most likely were brought about because of their lack of true safeguards and process reviews.
Instead they make stupid decisions, foreclose, and cost the taxpayers more money by selling to their investor buddies. How is that letting the market work the values out for them?
Today they want to keep the house on the market for a certain number of days. Tomorrow they will tell you what to list the property for. The next day they'll tell the seller who the approved short sale realtor is. etc. etc. etc. Are they stupid or extremely smart? I haven't decided yet. If this is their well-thought out plan to take total control, then they're really smart. Nothing is ever done in big steps. Tiny little bites until there's nothing left.