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:

 

[email protected]

Thank you 

THIS POST IS PUBLIC SO DON'T POST CONFIDENTIAL TRANSACTION DETAILS HERE. 

 *****You can send info directly to Ken at [email protected]

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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Follow up to my post.

NAR is looking for specific examples (with property addresses) of short sale transactions that have been denied due to Fannie Mae valuation issues.  These cases will be shared with Fannie Mae and other agencies to determine potential issues with Fannie Mae modeling or process.

Ken

We have a property in phoenix with a valuation issue

XXXX, Phoenix, Az 85050

Property listed at $400,000,  3rd party appraisal is at  $390,000 and bpo is probably at $410,000

Last offer was rejected at $400,000

Bank is asking for $470,000 net

Will this help

You can send info directly to Ken at [email protected]

THIS POST IS PUBLIC SO DON'T POST CONFIDENTIAL TRANSACTION DETAILS HERE.

OMG!  That is terrible!  I am sad for your buyers!  Hard to get something sold with those kinds of tactics!

I have an excellent property FNMA HAFA whom the servicer is Green Tree which has been denied several time with a Huge Valuation Issue. We have had the property listed over a year with Multiple FMV offers and now schedued for Sale 1/16/13. We have escalated to every resource we know only to hear the BPO is good for 6 months and is not eligible for appraisal review. Let me know what info yu would like I have this case Well documented. It is very unfortunate that the homeowner is now Facing Foreclosure when trying to do a work out with their lender for almost 2 years incuding being denied for Loan Modification. Hope this helps the cause~ Jenn

Ken, I have one right now I'm working on.  I'll send it to you shortly.

Whoops..the one i'm thinking of is Freddie.  I'm going back through all my files now though.

I have an huge issue with a Freddie Mac valuation.  Would that help?

I will gladly send examples of properties that are over-valued.  I don't think we should share property addresses publicly. May I send them directly to FNMA?  Paula

Will send you property address for use in the meeting.

You can send info directly to Ken at [email protected]

THIS POST IS PUBLIC SO DON'T POST CONFIDENTIAL TRANSACTION DETAILS HERE.

Ken, I've been working several files with Fannie as the investor and each has had valuation issues. Fannie responded to one indicating they don't look at buyer appraisals if there was a pre existing value dispute. The value dispute we filed earlier was because of the inflated price point they requested and approved a lower price-- but again before buyers appraisal. I've not seen anything like this in the 7 years I've worked short sales. While I can understand Fannie's concern that the market may be under valued in some areas due to high investor based sales, the fact that they won't look at a valid buyer appraisal seems to be nothing more than a way to force higher values in the market. This seems like the tactics that pushed our market into unsupportable highs which caused the short sale situations in the first place.

I have one at Nation Star that had an approval for the first buyer at $110,000 for a closing in september 2012  That buyer fell out in August and the negotiator called for the back up offer to be initiated.  The back up offer was $114,000  A second BPO was ordered and supposedly came in too high.  The bank countered at $150,000  The appraisal came in at $120,000  The buyers raised their offer to the appraisal price.  The buyers lender contacted the appraiser who stated that was the highest price possible for this property and it was subject to $14,000 in water tanks to be installed.  We put in for a value dispute, provided a BPO, the Buyers appraisal and a statement from the buyers lender that they could not loan above appraisal price, Fannie Mae still came back at $150,000 counter and requested we add a seller relocation of $3000  The seller was happy to forego the relocation, the buyers were willing to pay for the repairs and forego a septic pumping in order to make this work.  Fannie Mae would not budge and the buyers walked away 3 days ago.  I will send you any information and proof that you would like to have on this property in Idaho.

Ken - Any more updates?

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