This is the first time we have run into a Lender requesting an Agent/Attorney supplied BPO. They will not accept CMA's.
We requested clarification and they posted the BPO template for us.
Has anyone had this happen before? It sounds like they are going to request a Seller supplied Title Report as well.
Things are definitely getting strange.
Thanks for you help,
Hi Todd, I'm going through the exact same thing with Nationstar as well. We asked for a value dispute, and the negotiator advised that WE had to supply a appraisal. Of course the seller doesn't have any money to do this, and no buyer in their right mind is going to pay for an appraisal on a home that they don't yet own nor even know if they're offer will be accepted. The property has been on the market since February of last year, and we've gotten a whopping two offers on it. The last one was cash and 96% of the appraised value and Nationstar still refused to accept it. In fact, they countered it at $53k over FMV. I tried going directly to the investor with a very detailed dispute letter, but they emailed that they could not help and we had to continue to go through Nationstar as the servicer. Extremely frustrating.
I'm wondering if they are not trying to kill off a certain amount of short sales as they are overwhelmed? I just had a Wells Fargo tell a client to try another short sale (they denied the first one) and we did, it was just denied with no explanation and my client received a Debt Settlement offer the same day. They offered my client on his second loan (fully liable for the deficiency amount) an 80% reduction, payment plan with no interest.
I fully believe that this is another tactic to generate more revenue from certain files. Wells Fargo will receive more money at auction and 20% of the second debt than they would in accepting the short sale and selling the unsecured note to a debt collector and/or attorney for later collections.
With certain federally backed loans, there can be treble damages if the Servicer did not provide alternative remedies to a foreclosure. Perhaps the Debt Settlement is part of their alternative strategy.
I believe short sales will become more difficult.
My first short sale attempt with Nation Star.... I listed the property at FMV and we received an offer. A BPO was completed by another office. Off the record I asked the agent what her BPO came in at. It was very close to my listed price. We received a counter offer from Nation Star via Equator with no change in the offered price, only a minor change in the contributions to buyer. Then out of the blue today we get an email from the negotiator saying a mistake had been made and their counter offer was amended 50K over my listed pirce/offered price and the BPO. We contacted the negotiator and he said the investor (Fannie Mae) countered. They didn't even do an appraisal, only the BPO which came in very close to my list price/sale price. Now, the negotiator says the only way we can appeal this is for the BUYER to pay for an appraisal. Are you kidding me???? The buyer won't pay for an appraisal until we have underlying approval. Ideas welcome....
Look around this forum and you'll see messages including pointing to TV news about FNMA jacking up prices wildly. Your buyer doing an appraisal is irrelevant - just like the BPO being on target and FNMA throwing in an extra $50K. You need to get these bottom feeders into the light of day, unfortunately. These sort of soul suckers seem to be only repelled by hard response. I think the easier of the two would be to engage a state senator to your cause - number is X, YOUR freakin fed trough swilling bailout is demanding $50K more than any sane buyer or bank would pay - I need your help. I think getting a TV station interested in yet another ripoff from fed fueled parasites is a tougher sell. Just don't think you are dealing with a judge and logic - FNMA is a sellout not concerned with the homeowner or the ripped off taxpayer who is not the real investor. Don't waste your energy going down other alleys - that is just smoke. Good luck! We all need you to succeed to give us hope..
Hmmmmm, Ok on Tuesday I will try the Senator route. Thanks Joe.
I have the same thing - the email said I couldn't use comps - LOL - what do they think appraisers use? NS says they have a BPO but want me to do another one - I've got nearly a year in this $20k property - nope, not another 10 minutes do they get out of me. Mine isn't even a value dispute. Oh, thru EQ they send me an invoice for the BPO they ordered. What the heck was I supposed to do with that? Now, I am collections agent for them too? Ha!
I've already suggested the seller request a DIL.
I believe it will be time for scorched earth tactics soon.
There is a good argument in Equity that once a lender has offered a path for a short sale and the debtor has relied on that process and program, that lender owes a duty of care to the debtor as the debtor has relied on those assertions and programs.
If one can prove a reliance case in good faith, then we can file litigation and due to jurisdiction being where the property is located - depose the Lender's negotiators, etc at the properties jurisdiction location.
Perhaps a settlement becomes easier at that time?
Although I'm afraid the lender will simply pawn it off on their legal department and not blink an eye. In the end, the short sale negotiator wants less files...
They sent you an invoice for a BPO? That's a new one on me. I'd send them a bill for my monthly MLS Dues in return.
I thought that was par for the course with Nationstar.
There are 2 banks out there that actually will REFUSE to even review a short sale with an appraisal supplied by the Buyer or Seller.....their money, they make the rules.
Are there exceptions - ALWAYS.
Dig in, be creative.....one of my favorite lines to dispute a bad appraisal:
"You will not do a new appraisal.....ok.....how long can my Seller live in the property FOR FREE AND NOT PAY YOU before your appraisal expires and you are required to get a new one....."
Here's my response to Nationstar:
I'll let everyone know how it goes....
The Seller will NOT provide a BPO, Title Search or other such request that Nationstar may demand. These tactics are NOT acceptable. If Nationstar does not provide a standard short sale process AS IT DOES IN OTHER SHORT SALES, we will recommend to our client to file a bankruptcy action.
In addition to a bankruptcy action, we will recommend and assist our client in filing LITIGATION Against NATIONSTAR in EQUITY for relying on Nationstar's assistance in a short sale negotiation. OUR CLIENT HAS RELIED on Nationstar's short sale program and will be harmed if Nationstar does not provide a fair short sale process. Jurisdiction will be in Phoenix, AZ and we will depose ALL PARTIES at this location.
Please make this short sale process similar to other Nationstar Short Sales that my firm has represented our clients with.
Why not just provide a BPO? It only takes a few minutes to complete one. Freddie and Fannie both have BPO forms available.
Title is also readily available from the title company. I order a full blown search and commitment when I order the prelim HUD. I submit the title policy with my short sale submission. And I include a BPO.
Work the system and get the short sale approved so the seller can avoid foreclosure and/or BK.
Some battles aren't worth fighting especially if it will harm the seller.