Hello Fellow Superstars,

 My name is Doug Juenke and I am a REALTOR-Broker in California and I am also a member of the C.A.R. Distressed Property Task Force and last week I gave a presentation to about 250 fellow agents about we what are dealing with and I finished up with a call to action about Fannie Mae.  I asked, no rather demanded that ALL of my fellow agents fax,email or do whatever they can to get this paper to our federal legislators which in our area is Barbara Boxer, Diane Feinstein and Doug LaMalfa.  I have included my example for ALL of you to print out and use to send to your federal reps.  I have included a non-NAR copy for those of you that are not REALTORS.  I do not know if this will get us anywhere but I have had this issue arise a couple of times now and to be honest it is complete and utter BS that our gov is once again manipulating the market setting us for yet another fall for which we will pay dearly while they get BONUSES for their crap.  If everyone one of us print this out and sends it to your own reps in your area ( thus it is addressed generically, feel free to insert your own folks for your area) we might just let the idiots in Fannie and Freddie know that we are watching and that they answer to us not the other way around.  We gave those 2 ENTITIES a huge amount of cash to stay open after their last attempt at corruption.  If we do not do something to at least try and stop the abuse we can no longer bitch that they are playing us for fools.  It is speak up or shut up, the choice is yours?  I made my choice.  Click on the link below and it should open the sample letter that we sent out last week.  If we get enough people to shoot this to the feds maybe they will look into it... I know wishful thinking but if we do nothing nothing will change. 

13-05-13%3BLT%20re%20Fannie%20Mae%20Combo.pdf

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I don't think this is Fannie specific as I run into it with Freddie too.  The only difference IMO between the two is you can do a value dispute with Fannie directly which has helped me in about 25% of the challenge files, and lately I've been told by Freddie backed files, "The investor doesn't allow value disputes" which I have no idea why, but it has happened twice this month.

Brian  I hear your response and I have to beg to differ. Yes..there are 2 sides to every story. I think what most agents are frustrated with, and I've been in the same situation myself....is that when you have a property that is a "distressed" property, such as a short sale....it's unfathomable to think that it SHOULD be sold at the same price or HIGHER than a regular property with equity where as a buyer you can do a request for repairs and have things fixed by the sellers. In a short sale, you want a buyer to let's see...wait months and months to buy that home, then pay top dollar for that home and ignore all the other possible standard sales coming up and stay in THIS transaction..and accept it "as is" with no fixing and all it's faults..and sell to YOU the buyer at a "fair market value" or over list price with multiple offers...

This is like going to a car lot and them expecting YOU to pay the highest price possible for a used car on the lot SOLD in 'AS IS" condition with no warrnties, repairs, etc.... against the nicer, all points 5 star certified car with a warranty and all shined and fixed up on the same lot.  YOU wouldn't do it, why should a buyer do it with a house? If buyers are trying to STEAL a house, we can all see that's going to be ridiculous in todays market. But when you have Fannie and Freddie coming in with valuations that are WAY ABOVE AND BEYOND what properties will NOT SELL FOR with NO buyer making an offer at THEIR over inflated price, and WAY ABOVE what THAT SHORT SALE will appraise for, unless you have that magic loan or all loans people.....yes...a good ole homepath loan from Fannie that comes with , you guessed it, a guarantee of purchase with NO APPRAISAL whatsoever...then YES..it is infuriating and unfair.

By inflating the prices of the market..they're driving us right back into a false bubble again that's going to burst the water pipes even worse this time around.  WATCH THIS SPACE...it's coming...

Ron   I do see your side of the story and yes ..everyone here has an opinion and is entitled to their thinking. Perhaps you misunderstood alittle in my reply. Yes, a property whether it be an REO, PROBATE, STANDARD SALE,SHORT SALE etc will only SELL for what the market will bear or what a BUYER is willing to pay for it...yes, real estate rule #1.  I agree...and yes, a buyer can BUY a warranty.

Millions of agents ARE, however, experiencing an overinflated influx of valuations being done by Fannie/Freddie..and it's not in our minds...we all don't even know one another..so it's not a figment of our imagination.  It's real and it's happening..and agents are uprising over it...

It's happening on several levels....at Fannie's valuations headquarters in Dallas...they do have a set ratio on what they will settle for....unless disputed or shown personally that they are incorrect, etc.. and then will possibly adjust....

And, when u mention the agents?  Yes, there are BPO agents out there just randomly doing as many as possible and whipping thru them to get paid and possibly not caring or paying attention to the comps, and repair invoices being turned in to show why it should be lower, etc...that have their own agenda for whatever reason. Then there are sincere and honest BPO agents taking the time to actually try to come to a true valuation.

And then, there are tons of BPO agents that have literally been FORCED and TOLD to "COME IN HIGHER WITH YOUR BPO OR NOT GET PAID"... Tons of them have freaked out and told me this personally.

2 choices: 1)when they balked and said..hey that's fraud...if you're asking for my opinion then telling me you don't agree with what I've told you it could sell for, and now telling me, my broker price opinion is too low and to COME BACK HIGHER or not get paid...it's blackmail.  The one's that were "whistleblowers" refusing to GO ALONG WITH THE PROGRAM....magically, didn't receive BPO's anymore...hmmm

2) The ones that WANTED to argue but were afraid to and simply went along with the program...are still doing BPO's and getting paid!!!   

I'm NOT saying ALL BPO agents are having this done to them...but plenty of them have TOLD me this is what personally happened to them...and no, these BPO people did not know one another.  It's happening every day.... so, yes, you can blame the agent..???  The very agent that is going along with the program...because Fannie needs to back up their claims that ...well, we got a BPO???? And it's just one of our justifications for our price...take it or leave it... because they LEGALLY need to prove they OBTAINED an independent broker price opinion.... but how "independent" is it when that person was forced to come in with Fannie's "suggested price" or not get paid at all...hmmm

So yes, I guess we should blame all these agents for not having the courage to DO something about it???

I've had this happen to me personally, and have a valuation come in so high on a property that could only go "all cash"..with issues up the wazoo...... the BPO agent utilized stated they were "forced" into certain things...and when I went to the top of Fannie, they put me in touch with "GOD" in Dallas who told me ..."doesn't matter WHO you complain to at Fannie...ALL valuations land on MY DESK and come to me, and no one is getting around me...so "GOD" and I went round and round for 45 minutes,then when GOD looked at my concrete information on the comps, foundation problems and incorrect sq footage they had on file...etc.. ... GOD finally relented or SAW the FACTS...and told me he would "help me" and forced me to then enter all information in the dispute portal...because it had to be entered legitimately and be given a case number....then GOD told me to give it about a wk, and gave me a name of one of his minions who would contact me to let me know what the status was of my value dispute.  I was given a case # right then and there...and true to GOD's word....less than a wk later...

I DID get a value reduction ....not at the price the buyer came up to...but at least it was more than 50% lower in our gap difference....and at the TOP of what would be considered acceptable. I thanked him and told the buyer..this is as good as it's going to get...I suggest you take it..or someone else will, now that it's within the realm of reality.... and he did.  

There is justice out there...but it's sad that tons of agents have to jump thru huge hoops to get there...

hopefully things are getting better.

 

 

Sheyenne,

 Thank you.  I simply am trying to get somebody other than CAR & NAR to ask questions of FM & FM to  look into their pricing "strategies".  As a member of the CAR Distressed Property Task Force we have had numerous discussions only about this topic and unlike Ron this group of statewide preofessioanls seem to think there is smoke in this fire.  We are made up of agent from Sand Diego to Oregon and absolutely everybody is being told the same thing..." the valuation from fannie came back so high that it killed the deal....." and we have had the powers that be go to Fannie ( In Feb) and we simply got back from FM "yeah, we realize it is a problem and will look into it!".   I am not a whiner and despite Ron's assertion that I am stupid ( with insult intended if I remember correctly!)  I keep seeing on SSS more and more blogs about this problem and I thought having a congressperson go ask questions may in fact help them rely more on local valuations when determining their acceptable net.  Apparently that is too tall of an order for Ron, but I thought it worth an attempt!

I know I will be voted off the island now but it is the price worth paying.

once again thanks for letting me not feel so "stupid!"

As the person that started this thread and having read the responses I feel I should chime in.  As for valuations being done by agents it is time for a wake up call. That is in fact part of the problem, Fan & Fred are not relaying on local agents. They have developed an internal valuation that is not based on any true market indicators, only their internal algorithms.  I now have my 4th file where the value is at least 50k under ALL AND EVERY  like kind comp and it is once again fannie. In this particular case the agent did not go inside or he/she would have seen no ceiling or drywall in the bathroom due to water damage and bad roof not to mention no flooring and the list goes on. However, Fannie countered at full boat as if it was in perfect condition.  I now have to invest a ton of extra time via homepath disputing the value and for what?  Because some stupid person in Oklahoma thinks they knwo the value in redding Ca. because a computer said so. 

Unless you have investigated the truth do not say that the value was assigned by a local agent. Fannie not only will openly say they are not relying on local agents they will tell you they are more than likely not using local data to find valuations so the myth that a "Agent" did the BPO is insulting at best, stupid at worst.  I know factually that a valuation for a fannie property came in at around $150k via the BPO ( which was accurate from comps) and FM countered at $225k for nor reason. So please stop suggesting that fannie is open,honest and looking at the bottom line. That is complete and utter BS. They are stockpiling REO's and then can offer the same house as a homepath with NO appraisal and thereby sticking the buyer in a higher interest loan, in an overpriced house from day 1. Isn't that what got us here in the first place, bad loans and unrealistic and unsustainable values? 

In light of the IRS scandal and gov. control, do you really think fannie is operating in the countries best interest.  Really???  But please give up the idea that local agents are included in determining value!  Fannie acknowledges themselves that that is not true!

so Ron, seriously it is  OK for a non local agent to provide values. I guess an appraiser coming in from 100 miles away is good to go on a local deal.... oh that's right,  the HVCC outlawed that practice because appraisals were getting so screwed up that now the appraiser must be doing work in the "area' or they have to deny the assignment. But it is OK for a non local agent to be doing BPO valuations!  Yup makes perfect sense.  

I once heard that you do not argue with an idiot because they wear you down and beat you with experience!  

I also said they are not using any BPO to determine valuations which means they might not have done one in the first place1  End result is the same, home goes to foreclosure, we agents on both sides have wasted time in our lives that we will never get back and apparently in Ron World that is fine!  Life is too short to have to put up with stupid bureaucrats playing games with people lives.

Obviously Ron, You are convinced Fannie and Freddie are acting in our best interest and doing everything legit and above board and all of these postings by fellow agents must be unfounded!

I tend to disagree!  They are playing games and I will go off and live in delusion land while you think that FM&FM are doing great.  I am sure I am a super small minority and nobody else will complain about FM again!

You win!

No Doug  I ASSURE you  it's NOT IN YOUR HEAD...there are real problems and they've been going on way before Fannie's March 4th podcast with our lovely NAR president...stating Fannie "is DOING something about it...

now that thousands are "whining" as people call it....  steps are being taken...how can you ignore the masses...when the masses are stating it is happening over and over again...we're not making it up... oh by the way...Fannie posted the "highest return ever on 1st quarter profits in a long time..."  I guess that's fantasy too...

Keep on plugging away... some things only get done when people refuse to lie down and silently take it anymore.

And yes Ron is entitled to his opinion...and I do see his point when some BPO agents might be part of the problem or to blame also....it's not just all one entity...its coming from numerous outlets. But the problems need to be fixed or adjusted...it can't just go on going up and up and up... I'm sure everyone here over 6 years of age has ridden a real live rollercoaster at some point in their lives....and what's going on is Fannie is grabbing all of us and slamming us in the seat and strapping us in with our arms pinned to our sides and pushing the button on the coaster...and we are slowly going up and up and up before coming to the top where it levels off for a bit and then you know what happens right????

This time around the drop is going to be massively frightening....

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