Short Sale Denied! Equator Transition Coincidence, or True FNMA Incompetence
I recently received a denial of a fnma short sale serviced by BOA, the file was in the old system for well over 6 months with 6+ BPO's completed throughout the 6 months and the file continued to move forward in the process. When the last BPO that was ordered and completed I personally met with the agent and confirmed the BPO value she was submitting was identical to the purchase price of the current offer, it's a fair and realistic offer. The file was approved for "fannie mae streamline" prior to this last BPO. The file was denied and closed with no counter-offer within a week of the BPO. File was not assigned to a negotiator at the time of denial, i was told it was a computer generated response. My question is 2 part. 1. Could it be possible this offer was denied and closed so that I would resubmit through Equator? Do you think this is part of a clean up process in transitioning everything to Equator? 2. I have heard that Fannie Mae will deny the short sale if they do not reach an acceptable net with the offer, where it may be more beneficial for them to foreclose. Any knowledge of this situation? Is it ever beneficial for an investor to foreclose versus take a short sale when the offer is at market value?
I resubmitted the same offer via equator along with 5 comparable sales to justify the sale price. I am awaiting assignment to a negotiator and no BPO has been ordered yet. Is there anything else that I can do to fight this denial?
Replies to This Discussion
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Permalink Reply by Esther M. Camarotte on
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Answer to your 2 part question. 1. No they would not deny it so that you can resubmit through Equator. They just tell you to upload it into Equator. Answer to 2. yes they do foreclose when it's more beneficial than doing a short sale. Please be aware that the denial may have nothing to do with the offer or the property but with the homeowner. Just because the house is under water does not mean the homeowner is underwater. So if there is no financial hardship then there is usually no short sale. You need to find out why it was denied.
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Permalink Reply by Erin M Booher on
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It was denied due to insufficient offer. However, the BPO value is identical to the offer price. The homeowner shows clear hardship, so i'm sure that's not the reason.
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Permalink Reply by Tracey Martin on
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I think that Fannie Mae short sales will get denied more often in the coming months because of the Fannie Mae Home Path lending program. We get a lot of Fannie Mae foreclosures in our office. Almost every one has a listing price which is more than fair market value. They have a lending program called Home Path which does not require an appraisal. Fair market value is not an issue for Home Path borrower. As long as the buyers qualify for the loan, it is a "done deal." No appraisal required. We always advise buyers that they should get an appraisal anyway, but if the buyer really wants the house, they may not care that they are paying more than fair market value for it. Note: there have been times when Fannie Mae has reduced the purchase price because the buyer got an appraisal and it came in lower than the asking price. I think they feel that they can cut their losses and get more than fair market value for the property as a foreclosure because of their lending program. I have my opinion about this program which I will keep to myself. What is it my mother always said " if you don't have anything nice to say, don't say anything at all."
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What I'm hearing is that if it's a Fannie-Mae backed loan, you have almost no chance of getting a short sale approved on it. I'm waiting to hear more feedback on this, but this is the gist of the rumblings I'm hearing.
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Hate to disagree as I have closed on several Fannie Mae short sales and just his month on a Fannie Mae short sale with BoA on Equator. Call Fannie and find out what is going on.
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How do you call Fannie May..Is there a certain person or dept to ask for?
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You can email me personally and let me know what region on the country you are in and I will look up the # and tell you what to do so you can get escalated up. My email is [email protected]
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Permalink Reply by Oma S Hoffman on
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true, true, bunch of paper idiots
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Permalink Reply by Laura Marshall on
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I also had one denied from the old system and a foreclosure sale date was then set. I called and asked why? They said offer too low. It was a market value offer! I resubmitted the SAME through equator and received a counter offer 10 days after input (they already have the appraisal). The only thing they countered was HOA transfer fee of $599. I pushed the accept button! The foreclosure sale has now been postponed.
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Thank you Laura, that does sound like a similiar situation. I assumed that the previous BPO's on file wouldn't transfer over to Equator and that I would be starting over from scratch, but maybe that's not the case? This is promising news. The offer has been in the system for about 10 days now, so hopefully I will get similiar information soon.
Laura Marshall said:I also had one denied from the old system and a foreclosure sale date was then set. I called and asked why? They said offer too low. It was a market value offer! I resubmitted the SAME through equator and received a counter offer 10 days after input (they already have the appraisal). The only thing they countered was HOA transfer fee of $599. I pushed the accept button! The foreclosure sale has now been postponed. -
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Mine appears to have. The only thing they requested was updated seller financial info.
(I received 2 approvals - in writing last week for 2 other files). It seems that there has been a change for the better at B of A. -
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Permalink Reply by Stephanie Greenberg on
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Does anyone know if Fannie Mae has a standard percentage they want to net from a BPO? The last short sale I did was a Freddie Mac and my negotiator gave me BPO and net and when I ran the figures it was 80% of BPO value. I am doing a Fannie know and negotiator gave me BPO value but she could not tell me what the net was.
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