Hi all! Time to check in and register your thoughts about the wonderful portal to fixing nothing...suggested by Fannie Mae! The reason they've created the "portal" on their HomePath site is because they were literally slaughtered and deluged with calls nationwide from realtors experiencing the wrath of "FIXED OVERPRICING" on ALL Fannie Mae, investor owned short sales! *Hint...Still think there wasn't a "secret directive" telling the valuation team in Dallas to come in with X amount over fair market value or what any OTHER loan would appraise a property at??? But remember folks, if Fannie makes the short sale fail, and it reverts back to Fannie, then Fannie's Homepath loan is the ONLY loan in the USA, NOT needing an APPRAISAL...imagine that! So they get to PROFIT on 2 angles, 1 in selling the home as a Fannie Mae REO and 2 to profit on the financing by offering the new buyer the HomePath loan, with NO APPRAISAL.
I keep hearing on a daily basis, that 1 out of every 1000 short sales is getting these over inflated counters resolved at all, to come in even near an appraised value...so, here's your chance to tell us your story...or thoughts on the portal...getting LOWER COUNTERS or GETTING FED UP???
end of redemption.client loses home after .4 offers, homepath contacted twice, with full appraisals, bpo's by us and Nationstar...Fannie dropped the ball each time. Nationstar rejected the offer before Fannie even weighed in. I questioned Fannie contact on how that could happen, and was told that Fannie can issue an opinion, but the lender has final say...Same Fannie Mae representative each time, second time asked me if I had called the Nationstar manager to have NS forward their materials, as NS had not answered the Fannie reps attempts to 'reach out' to NS! excuse me? I have better contact with NS then Fannie Mae? I will not take another Fannie file.
We just got a taste for the first time. We have an older home in Sacramento that has termites and a leaking roof and a $70k cash offer. The negotiator for the bank said the BPO came back at........sit down everyone......$149k! Yep you read that correctly. The negotiator said that she could not submit it to FNMA for approval with an offer at less than half of the BPO. So we disputed it through the FNMA portal and the response a week later was, "the BPO value is supported, please submit two competing repair bids with pictures of the damage, otherwise value is supported and the offer is declined." We told the buyer and he said Sayonora and good luck with the sale!
Just an FYI, the highest sale in the last 3 months and within 1/4 mile of the property was $140k, which was a completely remodeled flip. So FNMA took the highest priced home in the area and added $9k to determine fair market value. Ouch!
I contested one and also escalated to Fannie Mae appraisal division and they changed the value from 185 to 155 and we closed last week.
closed one two weeks ago. Fannie Mae started off 30% higher 9 months prior. www.homepathforshortsales.com is some ways is just a starting point.
Bottom Line. Keep plugging away.
I have experienced in my area that Fannie Mae is seriously over pricing homes. I had a small home that the seller wanted to short sell. Two houses down sold within the last 6 months for 76k and they were twin properties practically identical. I listed it for $79,900 and got a full price offer. I received a counter from Fannie Mae for $130,000. The sellers only owed $121,000 so I don't know how or why they would counter so much over fair market value. I tried escalating it and they wanted me to pay for an appraisal or a BPO and I instead sent them a CMA and 6 comps all within a mile and sold in the last 6 months. They did agree to drop the price but only to $123,900 which is about 30k over market value. The seller told me that he hit the same brick wall with Fannie Mae when he tried to do a modification. Now the seller has told me that he is going to bunker down and even sell off his appliances right before the auction sale date. Way to go Fannnie!
I am in 100% agreement with you. I especially agree with:
"But remember folks, if Fannie makes the short sale fail, and it reverts back to Fannie, then Fannie's Homepath loan is the ONLY loan in the USA, NOT needing an APPRAISAL...imagine that! So they get to PROFIT on 2 angles, 1 in selling the home as a Fannie Mae REO and 2 to profit on the financing by offering the new buyer the HomePath loan, with NO APPRAISAL."
That is indeed a very lucrative niche they have created and are aggressively pursuing much to the continuing plight of the homeowner and consumer. The next buyer is going to end up in an bloated loan with no collateral and so the whole cycle begins again ... except the debt to our nation climbs higher. *sigh*
Wow! Thanks Mega-Pros...::)) My point was ...and still is....doesn't everyone find it ironic that Fannie consistently has come in with OVER INFLATED VALUES on short sales? Don't say it ISN'T a problem??? For if it wasn't...then why are masses of realtors who don't know one another experiencing the same problem? And if it wasn't a problem, why was the president of NAR involved with the head of Fannie in making sure a VALUATION PORTAL was created on Fannie's Homepath site to address this very issue???
If u look at the big picture..the failed short sales due to Fannie's OVER PRICED values.... They ARE banking on x amount of them failing and reverting back to the bank in foreclosure....which ironically, Fannie then gets to control as an REO back on their books...by gaining and controlling the SALE and the LOAN....by having the only loan in the country NOT requiring that all important thing called AN APPRAISAL.
If anyone doesn't see the niche they've created for themselves....their loonier than a hoot owl.
We bid on an Everhome short sale for 205K which is what the appraisal to Everhome ultimately came in at. After 3 months, Everhome came in with a counteroffer of 314K despite the appraisal Everhome had done around our offer price. The broker thought their counteroffer was way too high and sent Everhome back the appraisal. I'd love to know how they came up with 314K since no comparables sell anywhere near that price.
Does anyone knows if the Homepath approval letters have deed restrictions?? Please advise.
Thanks you, all!!
FNMA short sales do have deed restrictions.