Help! I am working a short sale and I am stuck with a super ridiculously high appraisal and Approval to Participate price of 165K! The price of the property was periodically reduced starting from 193K to 178K to the more realistic price of 135K to 125K. Only then did the homeowner experience more showings and actual offers.
We received several offers on the property listed once at 125K-the Seller signed the highest offer after allowing everyone to come with their highest and best offer. That highest offer was 100K, all Buyers stated that the condition of the house was the reason for their offer amount. After the property was under contract someone did submit 109K but the Seller had already signed the 100K offer.
What can I do to get FHA and the bank to realize the real value of this home!? We submitted a package to Wells FArgo including pictures of all of the repairs needed, along with comps in similar condition, size etc. as well as a listing activity report. I was told by Wells Fargo that a dispute would be submitted but it turns out that the dispute was submitted to the appraiser and rejected by the Appraiser!
I put in a ticket with FHA but in the end they only sided with the appraiser.Although the FHa/hud rep admitted that there wasn't much notated in the appraisal report about the actual condition of the property she did not allow for me to send her my pictures of the damage, comps and listing activity report-she said that it was already decided by the supervisor and that the appraiser's comps that he used were all the same number of bedrooms and baths and so they felt that this meant that the appraisal is valid. Before that she had done her own online comps-Zillow I am sure - and came up with a only slightly lower value (not accounting for condition). Buyers won't pay top dollar when they can pay that for a renovated house! Of most concern are the homeowners who merely want to fulfill this obligation the best they know how-by means of the short sale-and move on with their lives-but they cannot even do that because of a ridiculous appraisal!!Are there any suggestions??Please help!! Thanks for any suggestions.
Selinda
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Fannie Mae is doing the exact same thing with outrageous required prices. It does not matter what the appraisal actually comes in at. Fannie Mae has been adding 20-30% to everything. There is interest in doing a story or two on this practice from the media. You are exactly right that the appraisers are not taking into account any repairs needed in the properties. They are simply looking at similar properties. In one of my cases, I had the worst house (condition-wise) in the neighborhood. There were several comps to pick from and the appraiser chose the highest comps, where the homes were completely remodeled and in perfect condition. They missed the true value by about $40,000. They are obviously working toward foreclosing on homes rather than getting short sales done. Evidently, they need to build up their inventory to have plenty of bulk sales directly to investors. I'm not a conspiracy-theorist, but it sure smells funny.
Arrgghh, apparently this practice is still going on several years later!!! I have one that Fannie Mae severly ruined and now it may go to foreclosure in two days!!
**FANNIE MAE REP RUINED BOA SHORTSALE_FORECLOSURE SALE FRIDAY 2/13/2015!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Hello Superstars, where can I go to for help? This is the message I submitted to the CEO of FAnnie Mae via social media, but I am not sure how soon he will see it. What would you do?
Hello Mr Mayopoulos,
I apologize for addressing this via social media however I have no idea of what else to do.
Fannie Mae accepted a short sale offer of 125K via homepath for a property with a foreclosure sale date of 2/13/15.
For 8-9 months Bank of America and Fannie Mae has sat on an inflated value of 168K. Out of desperation when a 137500 offer came in I uploaded it into homepath-even though a lower offer was being worked. Finally BOA and Fannie reduced the value to 125K and the original buyer accepted the 125K counter offer.
Later ( a few days ago) the Fannie Mae rep insisted upon taking removing the 125K offer to work the 137,500 offer. She also gave me the impression that she would diligently work with BOA to get the foreclosure sale postponed if only Fannie Mae can get the higher money. NOW BOA SAYS that they cannot put in again for the the foreclosure sale postponement because the 125K was cancelled out and there is not enough time to work the higher offer that Fannie Mae insisted upon. I was told that if the 125k offer was left in as approved (and even ow if it was reapproved) that would enable them to process the postponement request. Now everyone loses!!! Unless Fannie Mae notifies BOA that they want to postpone the foreclosure sale date to get this done-or if we can go back to the 125K offer we may ahve a chance. This is the borrowers 1st foreclosure sale date and they are now being punished for bringing a higher offer. The Fannie Mae rep out of greed for a higher offer has seemingly stopped this short sale from even taking place. I plead with you to please enable these borrowers be able to complete this short sale with dignity without the stain of an ugly foreclosure. They have done all they could to not just walk away from their responsibility and now they are being slapped in the face for trying. Please help, I beg of you. The manager at BOA is Christopher Redburn 855-458-3430 CHRISTOPHER.R.REDBURN@BANKOFAMERICA.COM . Thank you.
Order an immediate new BPO, due to the lack of acknowledge of the previous appraisal,
Send a complete inspection report and go ahead and hire a third party appraisal and send everything to Wells Fargo
along with the new offer, HUD-1, appraisal from third party and a complete inspection report. Please make sure you keep up with the sale date, don't be taking by surprise by the attorneys representing the plaintiff.
Best of success...
Ivan Diaz Ikon Capital Group
Hi Kevin, thanks so much for your response. There was only one done at the end of August, but I'm very pleased to say this morning the marketing rep. at Wells informed me that she is now going to order a new appraisal. I am very surprised and happy!!The Sellers just want to get this resolved and moved on, and hopefully this will enable them to do that!
Great news!! Hopefully the Appraisal comes in lower. I've been shocked a few times when they have come in HIGHER!
Noooo!! I hope and pray not-because the marketing rep at Wells says that this new one will be it-even if it comes in higher. The other unfortunate part is we have to have it listed at 165K-so I hope that appraiser doesn't basically assume that 165k is the right number. Arrgghh
I agree with Diane- -definitely meet the appraiser there. We may do everything today by technology but good ol' face to face is still very important in certain situations. Make certain the appraiser is aware of the deficiencies in the property and the showing history.
Selinda, If you are using an electronic lockbox take it off and put on a combo so the appraiser has to contact you before making entrance to the property. I would meet the appraiser because your entire deal is riding on it and bring your comps, etc. Tell the appraiser what the situation is. Many appraisers are realistic if they understand the situation. Bottom line, if the appraiser thinks you are "low balling" the price they are going to set a realistic value, no matter what comps you bring. On the other hand if the appraiser agrees the previous appraisal was to high based on condition, the new appraisal should reflect that.
How many Appraisal's have been done for the PFS?