Short sale worth 180k supported by comps, Fannie counters back at 220k. Buyer will walk, and sellers will need to go back on market at 220k with slim chance of getting an offer and slimmer chance of getting an offer at 220k to appraise. Fannie declined my value dispute (didn't even look at it I'm sure). Does anyone have ANY advice on how to proceed? This stinks.
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Wendy,
Have you escalated the file to Fannie Mae level two? Situations such as these are extremely difficult and once a value dispute is completed they are reluctant to complete another value dispute. You need to reach out to Fannie Mae and see if anything can be done, but you may end up having to wait until the value expires and another one is ordered to see exactly where this transaction stands. We have two deals right now with Freddie Mac who have requested a mininum NET which exceeds being paid in full. Situations such as these are pretty much as tough as it gets.
310-564-6389
Escalate directly to FNNMA. http://shortsalesuperstars.com/profiles/blogs/fannie-mae-standard-s...
I wonder if Fannie Mae would accept an appraisal on the property as proof of value. The buyer and seller could split the cost since it will be cheaper than trying to re-list a home that is not going to sell. If they accept the appraisal, do not be surprised if the bank will require a new one to support the closing.
Wendy, You might try this. First, find out if it's Fannie Mae or the servicer who is really inflating the value. Hopefully the buyer is getting a loan, and his contract is written subject to his lender's appraisal. The buyer can always accept the counter if he is secure that market value and his lender's appraisal will support the original price. Buyer and Seller can split the cost of appraisal. Have the buyer's lender complete the appraisal, and if the appraisal comes in below the FAnnie Mae price, then submit that to the servicer with a copy of the appraisal and a notice of refusal to complete the buyer's loan based on appraised value. Have found that this provides even strong proof to servicer and to Fannie Mae as you proceed with your escalations. Many of the employees at servicer and Fannie Mae are engaging in serious CYA, and the written refusal to complete the buyer's loan based on appraised value---submitted by an established competing bank--- along with the appraisal can be a very powerful tool for you.
This happened to me two times, same house. Started at $150K, offer at $135K cash. NYCB countered at $175K. Buyer walked. Listed again at $175 and no showings. Reduced to $165 and got offer for same. Bank countered at $180K . SAME HOUSE. The market is going up monthly according to NYCB. I've now listed at $180K and cautioned agents not to consider anything less. It's getting shown this time so maybe the market is really climbing that fast in S. FL. It's a strange world out there:-) My latest comps say it's true! The house was listed July 2012. We're looking for a 5th sale (2 others fell through for different reasons).
Escalate with Fannie mae-in the meantime have the buyers agree to get the appraisal competed—that value will be the best fuel to counter the FM Value. Good luck.
I had the same thing happen to me. We did a value dispute and submitted an FHA appraisal. Fannie would not budge. Fannie wanted $96,000 contract was for $80,000 Appraisal was at $76,000, Property Appraisers value $69,000.
Of course buyer walked. Re-listed for $96,000 have a new offer for $83,000 new buyer of course. It's been over 120 days keeping our finger crossed this time.
I have noticed in the past with Fannie the first offer never works always feels like a huge waist of time when we get to the second they seem to WAKE UP!
Good Luck.
Thank you for ALL of yor replies. We got a new CASH offer for 200k and submitted. However, Nationstar refused to submit to Fannie b/c it did not meet their 220k value. I sent in a dispute via the Homepath website, and also ordered an appraisal just in case. Your advice was invaluable. I hope to report a positive outcome. Good luck to us all, looks like we will need it in the future.
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