I'm sure many of you are anxiously waiting for information regarding the results of the conference call set up to discuss issues with Fannie Mae evaluations on Fannie Mae short sales. I will attempt to summarize said call, but first, I want to point out once again the value that NAR provides for our industry. Without their continued commitment to fight for our causes, this would not have taken place.
Probably the best way to summarize the call is that is was an open, direct and passionate discussion. Some of the highlight points were:
1. Clarified the Fannie valuation issue is now the rule -not the exception re: Fannie Mae short Sales
2. This appears to be a Fannie Mae problem - not the servicers
3. This is not an isolated geographic problem, but generally throughout the country
4. There appears to be some signs that we are seeing the same trend maybe beginning with Freddie
I believe the main objective was to provide sufficient date to show this issue is real and needs quick attention. I feel this objective was met. I believe NAR and FHFA are truly committed to work with FHA to find solution(s). Recently, Fannie Mae working with NAR initiated the Homepath Short Sale web site and one of the proposed segments of this site is to be able to escalate valuation issues. Many of you may already know about this site, but those who don't, please use the link below and check it out.
http://www.homepathforshortsales.com/
It was agreed there would be continued communication. I would suggest that you work closely with your local and/or state Realtor Associations and provide good, concise examples of Fannie Mae short sales that you can "factually" show examples where Fannie is using values that are clearly in excess of FMV. I will attempt to keep you posted on updates if and when I received them. Thanks again for all your support and response
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Thanks for the update. I have to say I don't have a lot of faith though. I think Sandy may ultimately is pushing their own loans and hyper inflating the market. I no longer handle FNMAE short sales. Once they come back to reality, I will undertake them again here in the Palm Springs Valley.
There is a petition going around
Please sign it
https://petitions.whitehouse.gov/petition/force-fannie-mae-behave-r...
Thanks Yalda! This petition needs to get attention!
Everyone please send this to everyone you know so that they can read it and sign it. I am sending it everywhere I can to get it signed!
You may also want to read the latest update from NAR on this issue. Go to the link below to read.
http://www.realtor.org/articles/gse-short-sale-valuation-problems
I like the following paragraph in the NAR article:
"At the conclusion of the meeting, FHFA GSE examination staff requested that NAR provide specific short sale cases sent by REALTORS® for review and agreed to meet in the coming weeks to identify patterns and continue to work with NAR on finding a reasonable resolution."
In other words, after all the meetings and legwork done, FHFA has responded, "We have no idea what they're talking about. Prove it..."
FANNIE TO ALLOW WALK-AWAYS BY ON-TIME BORROWERS.
I caught this article in Bloomberg yesterday.
http://www.bloomberg.com/news/2013-01-28/fannie-adds-bailout-for-un...
This article references giving perfect pay homeowners an opportunity for DIL's
With Fannie thwarting reasoanble FMV for short sale approvals this new program flys in the face of everything we are dealing with.
Anyone elsewith an opinion on this?
I don't think this contradicts what we are experiencing at all. The entire premise that Mike and others are saying is that Fannie and Freddie are declining FMV short sales in favor of foreclosure since they are trying to take control of the properties and artificially push up the housing market via our current socialized housing market. Whether Fannie of Freddie actually has to foreclose or offer the seller/borrower a Deed In Lieu is not relevant. The relevant point is that they are taking title to the property so that they can list the house at a high price and offer financing with no appraisal in order to try and sucker naive home buyers into overpaying.
unfortunately for us all...it's working
Probably best to have a separate thread on this?
Like many programs out there, it sounds good on paper, but will unlikely make a sizable dent. There's still the issue of the 2nd liens and servicer documentation. Since the homeowner is not in default, I don't foresee a sense of urgency by the servicers to process the DIL. Also, what valuation methods will they use to determine if the home is underwater? If they use the methods discussed above, many homeowners would have "equity" when the opposite is true.
It would be best if it were a "no doc" process.
The end result in a successful DIL is another REO on the market -- inefficient when compared to a short sale where settlement and transfer of the asset is done on the SAME step.
After disputing a new and not-related-to-market-value counter offer on one of my short sale listings, this is what I received back from the CitiMortgage negotiator:
While I understand the frustration based on the difference between your offer and the counter requirements, I must advise that as of 11/1/12, the investor no longer uses BPO value to determine short sale requirements.
Regardless of value, the investor determines an amount that they are going to require in order to allow anyone to short sell a property, and that is the amount we must adhere to. We no longer have the ability to dispute the values.
In order to keep the file active, please advise on how the buyer is going to proceed.
Charlton Stubblefield
Short Sale Negotiator
CitiMortgage
1000 Technology Dr
O'Fallon, MO 63368
Fascinating! Investor is Freddie Mac. Count me in on any efforts to get this unjust ruling with Fannie and Freddie reversed.
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