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???
Homepath is a joke. Fannie told ME what would affect the value and to do some research. I did and NOTHING. NO one has gotten back to me and I've followed up weekly.
I've submitted about 8 cases - I will say 50% of them did lower but then the other 50% didn't even BUDGE.
I have used the escalation tool twice recently and was able to get the price down both times. I used a very extension price analysis including value from several valuation tools, showing history and price reduction history. It took 4 days to get a response both times. so this far my experience with the escalation tool has been positive.
It's not perfect but it's better than the way it was where we had no contact.
Its working. You can't be willy nilly with your strategy. I do what Bryant is doing - comprehensive value submission with an appraisal - the true determinant of value. Banks lend money based on appraisals - not BPOs. What a bank will lend on a property (not what they are losing) is as close to True FMV as possible.
You have to think collectively about the entire portfolio for the Investor may own (i.e., did their actions keep the neighborhood values up, etc.). Not just the 'loss' on one individual property.
After buyer #1 fled the Fannie nightmare, buyer #2 stuck around and ordered an appraisal. The online dispute (twice) got Fannie down from 230k to 208k (value of the buyer's appraisal). Actually the Fannie Rep (whose official title is Foreclosure Specialist...hmm) was great, but Nationstar continues to suck it. The negotiator did NOT include the 3k relocation assistance in the approval letter and allowed only 3% commission, and 12 days to close on a CONV loan.. I called him out and if he doesn't budge I will dispute again. Like I have time for all this nonsense.
BTW, the Fannie webinar yesterday was CLASSIC. Fannie Rep announcing short sales are no longer discounted, they are now priced Fair Market. Oh really, like we haven't noticed. Good luck to you all out there, keep fighting!
Just a different spin on Fannie Mae at foreclosure. A recent trustees sale had a minimum bid of $222,000 and then sold back to bank for $176,000. They seem to be pushing the amount they will accept for investors at the courthhouse sale attempting to either profit up front or make sure they are the winning bidder.
I successfully closed 3 Wells fargo/fennie mae transaction with all the same floor plan and same condition homes. The first home sold for $122000, the second home sold for $105000 and the third home sold for $127500. The 4th home had a cash buyer for $125000.00 Imagine my horror when the bank came back with a $165000.. Really? These 3 homes are all within a few blocks from this property and all closed just about a month ago. Of course I called the agent and asked her which comps were used and she told me the recent sales in that area. I then shared with her that Wells Fargo came back with a counter offer of $165000. The buyer walked in was not into playing games. Then another cash buyer made an offer for $120000 The bank again came back with $150,000. After sitting on the market for another 3 months I decided to reduce the price to what I know is now the market value $137500. Within a day a cash offer for that amount came in.... Will the bank take it? OMG I sure home so....
I just experienced my first inflated value counter offer with Wells Fargo as the servicer. The property is in poor condition and will require extensive clean up, repairs and renovations (has a non-permitted 4th bedroom built in to the garage that has to come out among other things). I priced the home based up on recent closed transactions in the area that also needed repair and remodeling to bring them up to a marketable standard of living to attract an investor that would take the property as is. The list and offer price was $90k and Wells countered at $120k. When I called the BPO agent to ask about the comps they used, she "apologized" and told me that Wells would not allow her to use any short sales, properties under contract or pending sales in the BPO. She also claims that wells would not allow her to make any deductions/adjustments to value for the replacement of carpet, or paint or for the removal of the unpermitted 4th bedroom as they do not make the home unlivable. The property is in Glendale, AZ and the only other comp's consist of homes that have been previously bought as short sales, completely remodeled and brought back to market. Has anyone else heard this about Wells Fargo dictating which properties can be used in the BPO or that they will not make adjustments for repairs necessary to bring the home to a condition comparable to other properties in the area? This does not seem legal or ethical! If the BPO agent is being honest to me, it seems Wells is requiring agents to submit inflated dishonest BPO's.
NationStar..first offer sent through dispute at Homepath..declined. 2nd offer in the works, NS negotiator says to not submit with agent facts, only with a true appraisal..her tip. now waiting for the lenders appraiser to cough one up and send through again..crossing fingers, sheriffs sale scheduled in May.
I have one with a Wells first and a Chase second. Fannie holds the paper. Chase already agreed to a lien release & full settlement at the maximum allowable Fannie contribution. I thought this meant we were doing great until we got the counter offer. We've been listed almost a year, began at $185,000 and ended at $100,000 before getting our current offer slightly under $100,000. The counter offer came back at $183,000 (more than double our PA price).
We are getting the buyer's appraisal done. If it comes in close to the PA price, it will be interesting to see what Fannie does.
Either way, with all the recent challenges I've decided to get out of short sales and will be referring them from now on. It's a pity since I've done well for people for the last 4 years but I feel they are tougher to get done now than EVER!
Good luck to all of you who continue to fight.
Ive put a couple cases through so far -
One valuation issue. Sale at 85k, listed at 90 - 2 years worth of listing history/reductions, 4 buyers - each a little less than the last, its a no-brainer bad valuation. Fannie Mae stands by their valuation of $140k sending me their appraisal full of erroneous property info. I challenge this - they ignore me.
Twice I have requested early BPO's...these have been done but they have not revealed the values to me...
Friday I put in another request because I had a short sale denied - servicer stating client does not qualify to be considered in "imminent default" - I asked Fannie to reconsider as I believe client absolutely qualifies for imminent default. I guess we dont have to prove imminent default once May rolls around - cause it'll just be a straight up default.
Oh the games we must play....I'll update once I have fresh info on the pending ones...but it looks to me like the escalation tool is all for good pr and not much else.
Nope...it really was imminent....