The present buyer is backing out due to too high counter offer. The house was listed at $181k and is now at $134,500 after 5 months on the market and no offers. Needs extensive work due to deferred maintenance and exterior damage caused by a dog. Pictures, CMA, and written estimate for repairs were provided. FNMA/Ditech wants the seller to file an insurance claim with the lender for the damage. The seller cannot afford the insurance deductible and has moved out. Another agent showed house today and have a new offer for $135,000. Is there any way to get around this? The house will not sell at $160k, which is what FNMA/Ditech wants.
Have you attempted a value dispute with FNMA? Not taking out the claim could be an issue, I've seen this many times in the past.
You can jump over Ditech head and go right to FNMA for a dispute. They have a dispute portal online you can fill out if you represent the seller. This is very effective.
Agreed with the previous posters, a value dispute is your best option at this point. I've had much greater success with those when I have provided FNMA with solid evidence to document my value claim. CMAs and BPOs can be a bit arbitrary, inaccurate, or simply skewed. A repair estimate from a licensed contractor addressing all of the deficiencies with the property and a hard cost to fix them, can speak volumes (this repair cost can of course be.....creatively embellished in your favor). Likewise, a certified appraisal will usually be weighted by FNMA much more heavily than a BPO or CMA. This is obviously a cost and risk for the buyer in hiring an appraiser, but if they really want that property, it may be the only to get the price down.
To echo what Brett had previously stated though, the issue over not taking out the insurance claim could be problematic. Have you provided FNMA documentation stating that the borrower simply does not have the funds to pay the deductible, thus making a claim a rather moot point? I've found that a signed/dated letter from the borrower stating anything to be much more effective than simply telling them such.