Fannie Mae Does Not Allow Appraisals to Dispute Values -- Really???
I was told this week by AMS Servicing (3rd party vendor that processes short sales for BofA) that Fannie Mae does not accept an independent appraisal to dispute a BPO valuation.
My client is doing a Fannie Mae HAFA short sale. The initial BPO resulted in an initial required listing price on the high side at $172K, so we were very excited to learn that a new BPO could be ordered after November 17 to give us a fighting chance to get an offer on the property. HAFA Short Sale Agreement is set to expire December 28th.
BPO was ordered on 11/19. BPO Agent didn't get to the property until 11/23. Results did not get back to AMS Servicing until 12/7. Surprise, surprise: new BPO resulted in listing price to be increased $12,000 to $184K! So if we couldn't get an acceptable offer after 3 months at $172K, how on earth would we expect to get an offer with an even higher list price?!!
We decided to order an appraisal, but we were concerned about the Short Sale Agreement deadline, so I contacted AMS Servicing to let them know we are ordering an appraisal and would like to request an extension for the HAFA Short Sale Agreement. The response was 2-fold: (1) Fannie Mae will not accept an independent appraisal to dispute a value, and (2) there cannot be an extension of the HAFA Short Sale Agreement marketing period without an accepted offer.
Talk about caught between a rock and a hard place!!
There may be other parts of the country that are experiencing great increases in housing prices, but not here in Lane County, Oregon. We are stable at best, and still declining in some areas.
But to not accept an independent appraisal over a BPO? That is just sticking one's head in the sand.
Replies to This Discussion
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Permalink Reply by Smitty on
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I agree 100%. There is a valuation dispute form on this site provided by Fannie. Can you fill it out and send it into the negotiator on the file?
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Permalink Reply by Rachael Babinchak on
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Here in AZ this is rampant as well...a forum of 1000+ agents were given this advice:
We all need to contact our respective Attorney Generals office. Read the post I did about "How to file a Fannie Mae short sale decline in AZ" http://actvra.in/M5c
Agents in Phoenix, AZ also had to get a local reporter to contact FNMA National Spokesperson, so the more agents who appeal and highlight publicly what FNMA is doing, the better this situation will get.
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Permalink Reply by Kevin - Greenville, SC on
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Q19. What does the servicer do if the buyer's mortgage appraisal is lower than the sales price that was accepted?
The servicer may submit a valuations dispute when the buyer submits a new offer that is less than the original approved purchase offer because the appraisal was lower than the sales price.
This can be accomplished through either Clarifire®
(for those servicers with access to that
application) or by emailing [email protected].https://www.fanniemae.com/content/faq/short-sale-faqs.pdf;jsessioni...
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RE: FNMA Value Disputes
1 message -
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Permalink Reply by Debbie Parkans on
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Did all of the above - including 2 indepenent bpo's - FNMA said no and sent it to foreclosure. Value on BPO's -$135,000 and $137,000 - cash offer at $137,000 - Had propertly listed at $135,000- raised to $141,000 (that was the first net FNMA wanted) First offer was $135,000 - 60 days 35 showings no offers. 2nd time with the $137,000 offer FNMA wanted $168,000. This is when we challenged as shown above with the 2 bpo's. I am 99% sure that the bpo that FNMA they received was in the $130-$135,000 range because I met the agent there. So - I did all the work listed above proving my case. FNMA foreclosed anyway, put paint and carpet in at a cost of about $5,000. Put the property on the market for $220,000. Last week it had been reduced to $180,000 and is still sitting - again in a market where we are getting multiple offers.
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Permalink Reply by AnaLee Schnell on
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I had this same thing happen. The reason Fannie Mae valuations are coming in so high is they are now allowing comps up to five miles instead of one mile (which has always been their criteria). They are doing that because they are not allowing any "distressed" property comps. I called Fannie Mae directly and they told me that they do allow valuation disputes and that the servicers are suppose to process them. So two different stories are being given. My argument to Fannie Mae was, in the Las Vegas market; five miles can be the difference from the suburbs and the rougher parts of town and it seems that short sales are the only true comps that could be used. The banks are not letting these properties go for under market.. but the equity sales are going for higher values because of our low inventory and in my opinion do not reflect the true market values because the homeowners are marking their properties up and then there are bidding wars on them as well.
Fannie Mae rep I spoke to agreed with me and is working to get my valuation dispute handled.. they sent my comps to the servicer and I am waiting on a response. I also told Fannie Mae that I would be contacting my congressman, because every single Fannie or Freddie deal I have.. the "comps" are coming it at $40k-$60k over true market value and something about that stinks. On some of my properties there isn't a chance in hell that the property comped near the price they are trying to force the property to be sold at.. even going out five miles. I asked to see the BPO they were going off of and they refused to show me. Something very shady is going on. I advise anyone to call Fannie and file a formal complaint.. maybe if they get enough, they will listen.
Fannie Mae 800-732-6643
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I have 17 Fannie Mae file at the moment here in LAS VEGAS and having value problems with everyone! They also will not adjust values even with the BUYERS 3rd party neutral APPRAISAL..... I agree with AnaLee something SUPER SHADY is going on!!!!
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