Greetings everyone and thank you in advance for your responses~
I have a short sale listing Green Tree is the servicer and Fannie Mae is the investor.
Property listed at $140,000 and very clean offer at $140,000 no closing costs or anything additional.
Green Tree does BPO and says they want $190,000. We dispute it and they say to get a full appraisal.
Buyers lender orders appraisal through independent licensed 3rd party. Appraisal comes in at $140,000.
Green Tree says they still want $190,000. We go directly to Fannie Mae and THEY are the ones insisting on $190,000.
Even if I put this back on the market at $190,000 NO ONE WILL PAY THAT!
Everyone is LOOSING in this situation EXCEPT apparently Fannie Mae.
What am I missing here and more importantly - What can be done?
Thanks
Laurie Rogers
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Similar situation here in Chicago. Fannie asking for 5-15 % more for properties than FMV. BPO done by Green Tree stating FMV as 234k. Price negotiated to 225k due to condition of property (No appliances, major work and vandalized). Sent to Fannie for approval. Fannie came back at 260k. Buyer withdrew. Fannie not budging on appeals. House going back on market to sit empty through winter months. After all is done, Fannie will get the same offer. Where is the reasoning! Many agents reporting the same issue with Fannie in our area. Looks like their new policy is spreading across the nation.
From Chris Hocking in another recent posting reply:
Here's the recent Phoenix news report about FNMA's crazy valuations: http://bcove.me/4yrm8ndd
I have had this happened to me as well. However, the loss mitigator was very imformative and indicated that it wasn't just the FMV and BPO that they were looking at it in order to value the home; also the loss that they are taking. Thus, if the home is only work XX but the loss percentage doesn't qualify the short sale for that value amount, they have to add that back in. Thus, the higher purchase they need in order to approve a short sale.
Yeah, well, negotiators can come up with any justification. But think about it. The house is worth $100K, that investor is losing $150K on it, so it somehow makes sense for them to leave the seller in the property until they foreclose rather than get what they can out of it now before the homeowner abandons it or strips it in disgust while living in it for free for the next 2 years - while the investor is insisting that they need a stupid buyer who will pay maybe $180K for this $100K property? That makes sense how? Can the investor really be that dumb? (OK, I sometimes think so these days....)
SOMEthing is going on with Fannie Mae, as I too had a similar experience w/FNMA wanting over market value on a s.s. I'm wondering -- might there be an alternative payoff for them if they foreclose? Perhaps they have a PMI policy that would pay them more after FC than the s.s. payoff would net them? This is all too common of a scenario. There is a Fannie homeowner help phone number: Start at their Headquarters: 800-732-6643. Try asking for a level 2 supervisor.
I had this same situation 2 months ago - offer at 61K . Greentree said Fannie Mae wanted 75K . I put it back on the market did price reductions for a period of four months and fianlly got and offer at 60 K . Turned in the offer and now Fannie wanted 95K. Nothing, I mean nothing had sold that high in over 2 years in that area! Impoissible price! I was told to get a full appraisal by a 3rd party ..we did and it came in at 59K! they still countered at 95K. I then escalated to Fannie mae and asked for a value dispute I was contacted by a manager . Manager asked for a full BPO done by me to dispute along with MLS sheet for active and solds. I turned them all in.Comps Very easily proved not worth more than 60K . 10 days before foreclosure they countered us again at 95K. I escalated once again and got a call from a manager in valuations at Fannie Mae. HE said FANNIE MAE is trying to turn the market around and they are marking up all appraisals and bpos by a min of 17 percent! he said they feel short sales are making less money and they feel they brought the values back up in Foreclosures and they are using the same stargety in Short sales! I said "so you are knowly giving agents and seller prices you know they cant meet?" and he said yes!!!! I coulnt beleive my ears he said yes, we want them back as foreclosures we make more money. I mentioned they are risking their reputation with realtors as we are the people selling there homes and working for them. He said he understood my concern but FAnnie felt this was the best way for them to get money and I could expect to see this across the board on all short sales. I asked him how this was right ? he said they are going to bring the market back and the bottom line is they make more money at this point if they foreclose. Thisis becuase they can offer the homepath financing and dont need appraisal once its a foreclosure. They no longer are focusing on short sales and want them back as foreclosures. Fannie Mae is bullying homeowners into foreclosure by taking a very long time to answer offers , waiting for the foreclosure dates to get close and then giving seller unrealistic prices that they know the market will not suport in order to force the homeowner into foreclosure! My client qualified for HAFA - but due to the unrealistic price they placed on the home the house is foreclosing. Fannie Mae forced them out of HAFA! I wrote a letter to attorney general and FBI. What good is the HAFA program if FAnnie can just place any value on a home. This also is now happening on another file I have. Many of the agents in my area are experincing the same. It is not right! The owner should have the right to apply for the program and have it run the right way with the real appraised value not be bullied by Fannie mae with prices that they know will cause the home to foreclose. Does anyone else feel this is crazy?
Good for you!!!!! I am going to start suggesting that all Realtors report this to the attorney general and FBI. Wondering if there are any other government agencies that this could be reported to? If you ask me, someone needs to file a class action lawsuit against Fannie Mae! This is happening all over. I have talked with multiple Realtors in my area of central California and in my office alone there have been numerous deals lost. They don't want to short sale or help homeowners like they are suppose to. Here's what I don't get...they get an appraisal done and it does not come in at the value they are looking for, so how do they expect to sell it at the higher price even in foreclosure when it won't appraise? Most buyer's need loans and to get the loan it must appraise and if it doesn't appraise, who wants to buy a home for more than it is worth? IDIOTS!! I for one am done with Fannie Mae! They do not wan to help homeowners. They are out there to foreclose on as many properties as they can so they can try to drive the market up and it makes no sense at all. I'd love to find out who is behind this new policy! There should be an investigation and seriously someone should be held responsible because they are causing more financial damage and they are NOT helping the real estate market. we need more realtors like you to stand up and say enough is enough!
Fannie Mae Homepath Loans don't require an Appraisal.......
We have the same situation here on 2 listings (both serviced by Seterus) in the same condo community. Oddly enough, Fannie Mae is demanding 10K more for the lesser valued of the 2. We disputed both showing clear and compelling proof of FMV but Fannie Mae says that they are basing their value on their "Red Bell Valuation", not on the BPO's provided by 5 different local brokers.
The negotiator for Seterus doesn't know what/who "Red Bell" is and my own research found very little about them. Does anyone know anything about "Red Bell"? Is this something like Zillow's "zestimate" valuation?
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