FNMA irrational values have become the rule rather than the exception...and not just a little irrational!  One must conclude they don't want to accept short sales any longer.

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pardon my ignorance - is there a Federal Attorney General or contact our local/state AG?  I'm going to post on our forum of 1000+ agents to help get the word out. 

Rachel I'll pull it together in the morning  via blog post and get the word out what to do in AZ and other states as well. Thanks for  your support in posting to your 1000+ agent forum.  Call me  in the morning and let's work together on this very critical issue. 602-380-4886

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

hi Anna - it's been a couple of months since your blog post -- any updates?  

By any chance do you have any script of wording that works best when homeowners complain to the state attorney general - if you are willing to share, please email me at [email protected]  

I cannot just sit by and do nothing.  This latest "trend" of Fannie Mae must stop!

I think our Government and Fannie Mae are just attempting to control housing prices on a national level! Check out this blog post I just posted on this site - www.shortsalesuperstars.com/profiles/blogs/is-fannie-mae-attempting...

The reason the values are irrational is because they hire the least experienced and most ignorant real estate sales people (who are still trying to break into REO) to do the valuations.  If these groups would hire appraisers, we wouldn't have such value problems.  It's disgusting and appalling that we have to deal with people who sell one house per year, have a full time job elsewhere and do 3 bpo's per month in a market like Charleston, SC in order to help save people from foreclosure. 

Not only are the BPOS done by agents who do not know what they are doing, I have found that the agents aren't even entering the properties to do the BPO.  With electronic lockboxes, we can track who is accessing the property. On two of my recent short sales where Fannie Mae counter offered outrageous prices, there was no record of the BPO agent accessing the property!  Either they just drove by or they made something up online using non-comparable comps!

I'm in Florida and Fannie Mae is destroying this market. I had them string out a short sale for 17 months with irrational values. I also held an appraiser's license, so I feel confident that I'm able to value a property. When the house was originally listed, it was at $189,000. I had a full price offer. Fannie sent appraiser. House appraised at purchase price. Fannie wanted $230,000. Buyer walked. All offers came in lower. Struggled with Fannie as prices fell in my market. Fannie advised to reduce price to $175,000. Got a full price offer. Fannie countered at $230,000. Buyer walked. BoA cancelled short sale. We reinitiate. Prices continue to fall. New appraisal at $130,000. Get a full price offer. Fannie counters at $175,000. Buyer walks again. BoA cancels short sale again claiming a glitch in their Equator system. This continues along this path until the property appraises for $106,000. At this point I have it escalated. Negotiator says to bring her an offer of $100,000. I submit that offer. She counters at $106,000. Buyers go up to $106,000. Fannie counters at $130,000. We continue to argue unfeasibility of price as buyers are getting a mortgage and property MUST appraise. Fannie counters at $132,000. I contact the Consumer Financial Protection Bureau and my state Senator. As a result, Fannie comes back at $122,000. Can't get them to budge from that number. This process stretched out so long that the buyers had already sold their home at the point that we were told to offer $100K. Buyers had to borrow money from family members to make up the difference between appraised value and Fannie's demanded price. Their system is injurious to the Public. It's criminal what they do to Buyers/Sellers. It creates vulnerable situations, victimizes both buyers and sellers and puts them in control. If we did anything remotely similar, we'd lose our license.

Let's see, HSBC found to be laundering money for drug cartel, gun runners, boycotted countries and the justice dept says that they are too big to be held liable for their actions. What do you think our swell fed gov't has to say about freddie and fannie, hmm? I think I know why they do these crazy things - who is going to stop them? Obviously anything they do is, by justice dept definition, legal... ;-)

A large part of the problem is BPO agents who report inflated values to the Lender/Investor and urge the Lender/Investor to foreclose and then list the REO property for sale with the BPO agent. 

 

I have one case in process right now in which the lender foreclosed, we managed to have the foreclosure rescinded and submitted a bona fide offer to purchase from a well qualified primary residience buyer at the same price as the lenders initial bid in the foreclosure sale.  B of A ignored the offer, never responded with a single task or counteroffer, foreclosed again and now the BPO agent got the listing as an REO and solicited our buyer and has them under contract to purchase the property.  This is simply a case of sign crossing and interference with a contract.

This is typical behavior for many BPO agents and REO agents.

Terry, same in my area, the Fannie Short Sales are being appraised, not using BPOs.  Fannie is then "forecasting" what they think the property "should" be worth and asking for more.  the only BPOs I have seen on Fannie short sales are when we contest Fannies value and the agents doing the BPOs are not REO agents

Ok I have to jump in.  Have a B of A Co-Op Short Sale where Fannie Mae is the investor.  Closed sales in this development that are exact model matches have closed at $315K.  B of A does a BPO and appraisal ( both on the same day) and just came back with a list price of $355K.  Makes no sense

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