Just looking for any input on others experiencing the Fannie & Freddie inflated value issues. Any recent updates or solutions? 

I have two files right now that that I am experiencing this with, one is a Fannie and one is a Freddie. It is clear they have inflated the value on their end. It's not a BPO issue, its definitely an over inflated counter. In one case they countered more than 50% of what the actual BPO came back at. 

I have had my challenges with short sales over the past few years but there was always a reasonable solution or resolution, it's amazing what you learn to accept as reasonable. There doesn't seem to be a reasonable solution with these groups.

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Has anyone used BOFA twitter account to resolve any difficult issues with them?

BOA Twitter will help but only to a certain point. From what I can gather Freddie and Fannie has taken all delegated authority away from the servicers and they don't seem to have any pull with these evaluations.

To me it seems to be a position of arrogance, not to different from the administration and some believe they have a lot to do with it. They want to play Realtor, Appraiser and Seller all at the same time. They want to artificially manipulate the market and they are doing it very effectively it seems. Oops, I went political, sorry. 

Something is not right. On one of these forums an agent stated that a BPO agent was told to either put in the number they want or risk not getting paid. Now, I don't know why this person did not complain or document this further. I guess now they have decided to put in any number they want since even the Fannie/Freddie services have no idea what the BPO number comes from. Where do we go from here? In Orlando the prices have gone up so high that we will soon be crashing again as the median income will no longer afford to mortgage anything. Properties that were selling under $100K are now double! A 100% increase? How is this?

on my last BPO I called the agent and ask why and how she came up with the comps to support the counter.  She informed me that she did in fact turn in the correct BPO and B of A called her back and had her redo the comps to where she was told to take out the correct ones and insert higher comps.  She was also told where B of A needed those comps to be. I told her what she did was fraud and unethical.  My seller is considering filing a fraud charge against her. 

The person doing the BPO is a Realtor like us! Why are they silent on this? Why don't they document these things? Where is our whistle blower?

The next BPO - I will have my lawyer write a letter from my home owner stating that if they do fraud on their property - they will be sued and file a formal with with DRE.  These BPO agents are real estate agents and are committing FRAUD! I am ready to take on this fight!  Who's in?

Why not collect everything we have and go to the big news agencies? Also, what about the shadow inventory that is collecting dust as we speak? How long will they keep them? Properties here are falling apart and we have multiple offers on homes that are worthless because people have no choices. 

Also, I have a client who has been offered money for deed-in-leu. No coops. Just hand over the property and we will give you something.

I've just received a denial from Freddie for our short sale (we're the borrower) and their valuation of the home is about $20k over; it is my understanding that the bank did not get an appraisal, but a BPO.  I also found this http://www.freddiemac.com/sell/guide/bulletins/pdf/bll1303.pdf  that looks like it is saying if the borrower is current on payments (we are) then the servicer may NOT get a BPO, but has to do an appraisal.  Is that right? 


Freddie did not ask us to contribute, but told us our only option was a deed in lieu.  I threw a fit and they said the only contribution they would consider is the balance on the loan ($24k+), which we don't have in cash.  The only way we could do it is to take out of retirement, which I thought they were not supposed to consider as an asset. 

I've taken it to my congressman; they're 'looking into it', and it has not helped.  I've talked to attorney's, but have not retained one. 

I followed your pointer - the servicer is required to use freddie's service to get an evaluation - not an appraiser or BPO. Our MLS has a report for Estimated Market Value (EMV) and if this is the same database that freddie is using (the bulletin mentions EMV), you are better off with a BPO from a 15 yo kid with ADD and lives out of state. I compared several properties where I had FHA appraisals. One had an EMV of $488K, FHA appraisal was $260K.

I suggest you do a great job of disputing their evaluation (why is comp 1 $10K higher, etc.). I've attached the FHLMC dispute form that I got from BofA recently. (was unable to attach the form - sorry)

Always have your agent produce extremely good BPO's every three months and uplooad them. DO NOT use only retail sales..require your agent to use distressed properties for 2/3 or 3/4 of the assessment of value.

Your agent will need to be sure to carefully check each of the properties...they ust be within 10% of total square footage, within 15% of total lot area, and must be in the same socio-economic, build type and age and class of build, and same level of school and service district.  In vary rare cases appraisers can go as far as 5-10 miles. again VERY rare. 

Remember that NO sane person will ever place an offer for short sale and go through 3 to 30 months of hell and pay FULL LIST VALUE. These properties are distressed by nature...and cash is always king and there is a LOT of cash out there at low values in purchases.

It may be good to pay for an actual appraisal....using your bank to get the appraisal. If the appraisal comes back more than a total of 6% (+/- 3%) then someone is probably committing a fraud...or is incompetent, or has been ordered to violate the law and create a net value.

If you do order and appraisal and there is significant difference in value, then make a complaint and file reports against the party who seems to be incompetent or who seems to have violated the law.  Demand action from the state licensing board for appraisers. Demand a CoC review of the bank practices and actions in your case.

As a real esate agent my orders to ALL appraisers were to appraise the property for true market sale value. They were NEVER allowed a target price, they never knew anything of the contract (it is not relevant to thier job). Banks are KNOWN to give values to target that represent the percentage recovery that they "require" or desire.

Also, you have the right to the BPO as the bank ordered it on your account. It is knowledge pertaining to your property and must be disclosed. I suggest that you ask the bank for a copy of the BPO. It may haver properties that can or should not have been used for MANY reasons. Such as ..Better neighborhood, better schools, newer builds, higher class of constuction...better grade of development etc. 

I have seen gated community property used to prop values of average construction builds..highly unethical, and if a target value was given, highly illegal.

order your appraisal from a well known and highly reputable company or through your own bank .....on normal rotation. Get the appraisal then go take action.

Being angry and venting does nothing. But once you know the truth and can prove it, go to your senators, your cpmngressmen and CoC.  Make compliants against the realtor who did the BPO directly..if the bank will not disclose that name..then state that the name is being hidden by the bank. be relentless.

They are silent because that is their bread and butter and they don't want to lose the business. We as agent may need to police them and start filing ethics complaints against the BPO agents if they take this direction or provide inflated values. It's on us, no one else cares enough. 

don't forget the bpo agent has to bracket active and recently sold comps...no pendings etc.

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