The banks want it both ways

I am dealing with Fannie who thinks the house is worth more than anyone will pay for it.  We provided the servicer and Fannie with a CMA (market analysis) and showing history.  Our home has dramatic paint jobs in every room, older appliances, some unique construction alterations and has been vacant for a year.  There are 3 comps that have sold, with pools, bigger in s/f'age and totally remodeled and Fannie wants more even more than these homes sold for.  The buyer's lender won't lend on homes valued for more than market value.  The banks can't have it both ways.  Can you share any success stories where the servicer/investor has backed down on their unrealistic valuations.

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Permalink Reply by Karen Steed on January 5, 2012 at 7:31pm

Hi Karen

I love your name.  My name is Karen, and my mother's maiden name is Roberts.  I wish you good luck on this short sale situation.  I feel your frustration, but I have no success story to share.  I'm sure someone here can help.

Permalink Reply by Jeff Payne on January 6, 2012 at 4:24am

Karen,

Unfortunately this is not unusual, it has gotten better but there are still some at Fannie that think they know better than the agent who is local to the sales area.  I would escalate this file to Fannie Mae.  Does your MLS have Fannie Mae Helpdesk?  If so, try that.  If not, go to Jigsaw.com and find the email address of every single Fannie Mae exec and BOD and start emailing your case to them.  Keep sending until they respond because they will respond to you.  Find someone who actually has some common sense and who has the authority to say yes. 
What servicer are you dealing with?

Permalink Reply by Cody Lampariello on January 6, 2012 at 4:38am

Unfortunately in many cases you have a BPO agent that just didn't do their job and provided values to the bank that are unrealistic. We can always try to fight them but it is an uphill battle because they are always more inclined to take the value provided to them by their agent as the more realistic value even when given proof that they are incorrect. I see it happen all the time.

Try the route Jeff has mentioned it might get you somewhere. If not sometimes you just have to cancel the file entirely and re-submit. This will get you a new BPO. Go out meet the agent doing the BPO, discuss what happened last time and talk about the differences between your house and the other ones on the block. Bring comps, do their job for them. They are getting paid like $50.00 to do it so they usually don't work very hard. You may already have done that and this doesn't guarantee success but it's an option.

Another option for financing especially if your buyer is FHA is to just accept the banks offer and then counter the approved value once you have the appraisal from the buyers lender. This is a risky maneuver because your buyer may end up paying for an appraisal and the bank may not come down on their value but it has worked for me in the past more often than not.  

 

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