Members - I need you help quickly!! I have been in contact the past few months with NAR and Treasury Dept. regarding this issue. Please see the text below from my contact at NAR. If anyone is willing to provide "specific" examples per the request below, please do so ASAP. My contact information is as follows:
kenr@longrealty.com
Thank you
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*****You can send info directly to Ken at kenr@longrealty.com
Ken -
I’ve arranged a conference call with the Federal Housing Finance Agency (Fannie’s regulator) for Tuesday, January 8th at 1pm EST to discuss Fannie Mae short sale valuation issues. Fannie Mae reached out to several state associations in acknowledgement of the issue and efforts to improve communication on the process. NAR contributed input on the development of Fannie Mae’s HomePath short sale site that includes an escalations contact form to resolve some of these issues. Though this is a good step towards a positive resolution, we’re still moving forward with other advocacy efforts.
In preparation for this meeting, I’m wondering if you could help me track down specific examples (with property addresses) that you could provide us ahead of time? If we could get specific examples to share, it will help FHFA staff do some digging and identify any problems in the process or models.
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Ken, here is the update on that doozy I told you about yesterday. I will email you privately with the address, etc, as I am still flabbergasted at this response. This is the negotiator at Nationstar's response to our valuation dispute with Fannie Mae: "FNMA has responded to the valuation dispute. The evidence provided did support the need to reduce the value. The minimum net they require is now $95k. This is still above the loan balance. I have ordered a full payoff good through the end of this month. Looks like it will be about $85,700. This is what will be required to complete this sale. Let me know if you have questions."
The loan balance is $92K. Am I missing something here, folks? If FNMA needs to NET $95K, and if you consider closing costs (cash buyer), that means it's technically not a short sale (if seller could even get $92k for the property, which they cannot)!! HELP ME!
is it too late to send examples?
Ken, any chance those of us that want to listen to the conference all can get the dial in number?
I would LOOOOOVE to hear what they have to say.
Thanks.
Ken,
Sent 5 detailed to your email. Please let me know what I can do to help.
I have one we have been fighting for 5 months. XXXX Wixom rd, Milford, mi. We have a offer at $175k Chase through FNMA counters at $200k. Buyer comes up to highest and best of $180k. Chase closes the file we re-initiate the process and they counter again at $200k. We have a appraisal done value shows $170500. the offer is higher than appraisal and FNMA sticks to the $200k. We are still fighting but buyer wants their deposit back.
Another one was XXXX Woodlawn Commerce, MI again with Chase and FNMA. We ended up doing a deed in lieu after a year of fighting the value. They told us it was worth $70k and the highest offer we got was $35k. We submitted a value dispute and they again stuck to the $70k value.
I thought is was a Chase and FNMA issue but based on these replies it seem to be a FNMA issue. Thanks for fighting this for the benefit of all of us that try so hard to help these homeowners.
Hey Jason, It appears we are in the same neck of the woods. Were you affected at all by Elias?
No, but I have seen the letter about his firm being blacklisted.
Ken,
I have several where we have rock solid comps and a lot of them and Fannie is coming back $15k to $20k higher as their required net. I have done value disputes with the servicer and Fannie directly and have gotten no where. I can give you addresses and a couple of these properties are under contract with Long agents.
Have I got a doozy for you! We have a condo in Arizona where the loan balance is $92K. Fannie Mae was demanding to net $117K. WHAT? Since when do they want the profit on the sale, too? Would we be doing a short sale if we could get more than the loan balance for the property? I truly thought our negotiator was an idiot (Nationstar), but I checked with his supervisor and sure enough, this was correct. Obviously, we submitted a challenge to the BPO, but it has been almost a month since we submitted it and still have heard nothing from Nationstar despite daily calls and emails. I will be opening a ticket on the Fannie Mae Help Desk tomorrow. Email me if you want specifics and I'll send them to your private email.
Thank you for taking this on. I think the BPO people need qualified. Lately they have been the ones pushing the prices too high for me.
The price needs to be evaluated at the time it had the purchase contract on it. The quicker fannie gets that done the better for everyone. If the listing agent under priced and the buyer can not pay the FMV then the home can be put back on the market correctly.
In my case the evaluations were done 3 months after the purchase contract was signed. I had a very bad negotiator I had to escalate numerous times. With price increases in Phoenix it is not fair the buyer purchased in good faith the agent listed for a price the bank would agree to. Now you have a buyer that is hurt and mad at the Realtor.
Further the comps the BPO person had were not comparables. When a HUD home same model across the street was listed at $170,000 mine came in at $225,000.
Part of it I believe is they are trying to negotiate prices after the price has been put into a legal binding contract.The horse has left the barn.
SOLUTION:
Listing agent needs to have more input on how they came up with the price! After all the listing agent is working with the bank weekly anyway.Comps tax records and pictures just like we are providing the BPO. They can even pay us extra for it. I would not be upset with that at all. LOL
Thank you again!
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