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Permalink Reply by Teresa Lett on October 12, 2010 at 6:43am

Hi Kimberley,

The way I was trained in setting the list price when you are doing it on your own (not FHA pre-foreclosure or the HAFA flavors if you are planning to go ARASS) is +/- 85% of FMV net to the servicer/investor. There are probably individual investor guidelines with this, but I think that most servicers will tell you to list it at FMV, what they have for their internal analysis and HAVE TO NET is anyone's guess because they don't discuss it with you. That's why I was so hopeful with the HAFA pre-approved net thingy but I don't know that it's working out that well.

FWIW I do know now though that if you want to get the benefits of Freddie's HAFA relocation assistance for the borrower/seller you have to go through the pre-approval of acceptable net proceeds with them, they don't do ARASS, but simply refer that borrower to the B65 (regs) traditional short sale where there are no incentives from Treasury. Just a note on that because I sure would like to hear from anyone here currently working on a Freddie flavored HAFA. Just really really curious how that might be working out for anyone.

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Permalink Reply by Jeff Payne on October 12, 2010 at 10:47am

I do it a bit differently I guess. I try to find what FMV is today based on sold comparables, the best solds I can find. We list at that price and drop the price every 14 to 21 days until we get an offer. We log all call, leads and showings at each price point to track what a buyer would really pay for the property, which afterall is true market value. We send this in with the short sale package, so that the lender can see the listing history. We also share this with the appraiser or BPO agent to be able to establish the real value of the property. Of course some lenders will look at the listing history and other won't. THE KEY IS CONVINCING THE APPRAISER and making sure the appraisal comes in close to the offer amount. Facts and details will accomplish just that!

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Permalink Reply by Kimberley Kelly on October 13, 2010 at 3:03am

Thanks to you both. I have my own BPO done at Listing, and that helps support my offer price, but for the HAFA program, they do their own BPO, set a list price and we go from there. I am doing one now..not Freddie, and the BPO was ordered yesterday. I spoke with the appraiser and told her my own BPO number, and my own feel for the closed comps..we'll see what she comes in at and if it's at all realistic.

I like the IDEA of the HAFA program with it's timelines and standardized guidelines, but there are not enough personnel that have any idea how to implement the program. This one is with Chase, so I'll keep you posted..

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Permalink Reply by Teresa Lett on October 13, 2010 at 5:15am

Hi Kimberley,

That is so interesting that you have a BPO done. This may sound naive, but I guess it just never occured to me as an agent that I could pay a 3rd party to confirm my own CMA. Who do you ask to do your BPO? I just didn't think that as a real estate agent I myself could pay for and get such a service.



Kimberley Kelly said:

Thanks to you both. I have my own BPO done at Listing, and that helps support my offer price, but for the HAFA program, they do their own BPO, set a list price and we go from there. I am doing one now..not Freddie, and the BPO was ordered yesterday. I spoke with the appraiser and told her my own BPO number, and my own feel for the closed comps..we'll see what she comes in at and if it's at all realistic.

I like the IDEA of the HAFA program with it's timelines and standardized guidelines, but there are not enough personnel that have any idea how to implement the program. This one is with Chase, so I'll keep you posted..

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