Over the last few months, it has become apparent that Fannie Mae is more interested in foreclosing than approving short sales. The scenario is the same over and over again. The BPO comes in at one price and Fannie Mae adds 20 or 30% and says that is what they will accept. Some have suggested that they are trying to get next year's prices if the current price trends continue. In the meantime, buyers are unwilling to overpay by that much and are backing out of the contracts when they hear the outrageous prices that FM is asking. If you dispute the value, they reject it and then consider their number good for an additional 90 days from the decision on the dispute. Has anyone else been experiencing the same kind of problem with Fannie Mae being the investor??
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Mike,
I have been following this since raised and experienced this myself about 4 months prior to your first posting. This is a problem. But I think the solution to this problem may come from another problem that they are creating. And that is Disclosure. And I know they as a party repossessing property they only need to disclose material facts that they are aware of.
Like Value. On the property I lost to foreclosure Fannie had plenty of documentation on value. after repossession they sold the property $75000 over Comp value one of which was a model match.they do this without disclosing their BPO's and appraisals to the unsuspecting buyer by offering to finance the property with no appraisal. Everyone knows its a great deal to save the appraisal fee and over pay for the property. This also may put the Buyers agent in litigation danger by not disclosing that a property is over priced and recommending the buyer have the property appraised as we do a physical inspected.
Has anyone tried out their new process of asking Fannie Mae for a suggested list price?
If so, how long did it take? did they do an interior BPO or how did they come up with the suggested value? Was it accurate or how far off was it? Overall thoughts with pros/cons?
I find it hard to believe that only 1900+ people have signed the petition...at this rate we will not get it in front of the President...We need to send this everyone...blast it out on facebook, tweet it and more importantly post it on your mls...get involved with this...do it now...send to everyone you know...that's what I am doing...the Federal Government got us into mess...do not allow to keep us here....we need to change this up ...and now...
to sign the petition go to
https://petitions.whitehouse.gov/petition/force-fannie-mae-behave-r...
In order to sign the petition you must create an account. You put in your name and email address then you will get an email.. it will have a temporary password that you will type in then you create a new password that has to have a capital letter, a punctuation, numeric and alpha-numberic symbols (number and letters).
Then sign away!
I am uncertain if Fannie Mae is the investor (the Fannie Mae website did not show it as such) but we were just countered by the Wells Fargo Negotiator on Equator. The offer was for $833,000 (market value). The counter from Wells was $935,000. The Negotiator stated that the appraisal came in at $935,000 and they always counter with the appraised value??? I asked her if sending comps would help. She said no. Right now, all she wants is my buyer's highest and best offer and would not have a discussion beyond that. Anyone have experience with Wells doing this and what was the outcome?
Realize that often you are dealing with the lowest level with limited authority and very limited rules. Casual conversations often go nowhere. Be specific. Ask for their value dispute form, if she claims that there isn't one, ask for the value dispute rules. If she claims they don't have any, make it clear that you are noting her responses that she swears that the investor refuses to give any way for a bad value to be corrected (and that you will be calling the investor to complain as soon as you hang up - or OCC). You might call in to the SS reps and ask for such a form - then you'll get your request in their notes. It is a simple request and easy to catch someone lying about it.
You might also find the investor through the MERS online website.
Great feedback! I will follow your advise if need be.... Thanks!
Have seen most lenders do this, come in with highest and best and offer comps even though she says it doesn't matter, and lenders will likely take the deal as long as it's reasonable. The way to get the appraisal where you want it is to meet the appraiser with comps, explain it's a short sale and point out all flaws (if any) have a contractor's report if you can. I also ask the owner to unmake the bed, have dishes in the sink etc. They usually come back more reasonable. Remember, the poor appraisers are in the middle, they don't know whether you need high or low and law is we can't influence them. High if they are for a bank lending, low for a short sale. Help them out if they will let you. You have not broken RESPA, as you have not influenced, just helped out. Some appraisers are sent from miles away and don't know the area, they need help.
Yep, Freddie, too. I'm not the only one where the counter comes back for more than what is owed and to throw in that extra insult, Freddie wants a contribution on top of it. (At BofA, after I explained the absurdity of a seller needing a short sale but them demanding way above market and more than is actually owed and they want a tip of $6K cash - assumed for their fine work - the negotiator explained that if we didn't accept the counter, they would deny the sale. How do you fight "logic: like that?? HA!)
I, too, am fighting with Fannie Mae on a value dispute. After they came in with their ridiculous counter (which, by the way they gave to us in the form of what Fannie has to NET, not a fair market value sales price) we went back with our counter where the seller gave up moving incentive which CITI had promised to him and the buyer came up in price. We submitted this back on December 11 last year and are still nowhere. Now, they say the BPO has expired and so I've been sitting for 2 more weeks waiting for a BPO agent to contact me. We received our initial offer back in JULY! The homeowner has been driven to financial ruin by this.
My question is, WHERE IS NAR ON THIS?. Rather than touting the crap that Brent posted about how everyone was getting along and life is beautiful in the land of short sales, they should be using their power to expose this issue. We pay a ton of money for dues. They should be organizing some sort of call to action and bringing this matter before the general public and having their lobbyists raising all sorts of attention in Congress!
A local station in Phoenix did do a news story about this, the link is below.
I am hoping that with the aggressive short sale agents on this site that perhaps we can organize something to bring this to the attention of NAR and Congress. I'm happy to participate . . . any suggestions?
http://link.brightcove.com/services/player/bcpid49625183001?bckey=A...
Marcy
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