Fannie wanting Buyer Financing Approval to Postpone??
Help if anyone has had this happen! Loan Resolution Corp. is servicing a First Horizon Fannie Mae Loan. We have an offer that is actually higher than appraised value (per City of Atlanta appraisal) and it's definitely FMV. LRC called us on Wednesday and said it's going to foreclosure sale on 8/3 because they need $4k more. We tell them probably not an issue (we knew the seller was willing to bring it). Then they tell us they also need an APPROVAL from the buyer's lender, not a pre-approval within the hour. Which they admit is impossible to get in an hour or a week for that matter and that it's going to go to sale because that's the way Fannie wants it! After picking our chin up off the floor we've left several messages with Fannie but have not heard back. Anyone had this issue or have any advice?
Replies to This Discussion
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Permalink Reply by Bryant Tutas on
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Denim. Of course they do. They are not going to stop the auction on a wing and a prayer. When did the City of Atlanta start doing real estate purchase appraisals? You are probably referring to the tax appraisal. This doesn't have much to do with market value.
For the lender to postpone a foreclosure auction you almost always need a cash buyer with proof of funds or a fully approved buyer who is ready to close. At this point I would just see if the mortgage broker or lender can issue an approval letter. If they can't or won't then you may very well have an issue. Do you have any cash investors that can step in?
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Permalink Reply by Denim Wallace on
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I was referring to the tax appraisal.
I'm curious as to why you say"For the lender to postpone a foreclosure auction you almost always need a cash buyer with proof of funds or a fully approved buyer who is ready to close". This must be something new because we've rarely had problems getting foreclosures postponed with financing pre-approvals that were in negotiations. In order to get an approval from the lender appraisal, underwriting, etc. is required. We don't have the approval letter from Fannie yet but the buyers accepted their counter. Most buyers aren't going to pay for an appraisal and no lender will send it to underwriting without that written bank approval. We've never had a lender approval requested from FAnnie in order to postpone. They've always accepted pre-approvals. Bryant Tutas said:Denim. Of course they do. They are not going to stop the auction on a wing and a prayer. When did the City of Atlanta start doing real estate purchase appraisals? You are probably referring to the tax appraisal. This doesn't have much to do with market value.
For the lender to postpone a foreclosure auction you almost always need a cash buyer with proof of funds or a fully approved buyer who is ready to close. At this point I would just see if the mortgage broker or lender can issue an approval letter. If they can't or won't then you may very well have an issue. Do you have any cash investors that can step in?
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