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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Looks like we've all discovered the same thing. I'm working on the 4th contract on a home with NYCB and it seems nothing we do is working. They just came back with a higher acceptable contract price than they had accepted several months ago on one of the 3 (!) prior offers. Realtors know what the home is worth as I've had much feedback and NYCB has appraised twice with the latter being higher than the first (in a vacant home in hot Fl since May 2012. Buyers are wary and weary not counting how I feel after 4 attempts at this crazy property. Need I tell you how the seller feels?  Do I just give up and recommend he go to foreclosure after I talked myself blue in the face months ago convincing him that SS was better than Foreclosure. What a mess!  I won't bore you with the shennanagans on the part of the bank's processors. 

Just caught Citi Mortgage red handed on this.  Previously approved short sale in Phoenix for $72K. We were going for re-approval on the file.  Citi performed an updated appraisal on the property and I received a counter from the negotiator for $113,000.  Here is the fun part. The processor who handed off the file to this negotiator sent my client 5 letters from Citi mortgage (each dated a week ago) stating that the appraised value came back at $77K.  OOOOOOPSSSEEYY!!  Looks like Citi slipped and sent that information out by accident!  Of course, I quickly threw the letters in the negotiators face, asking why he thinks an almost 50% counter was appropriate when their own documentation came back 5K over our offer price on a cash deal with no concessions.  Let's see how they try to justify this....

Just last week I attended CDPE web interview with Fannie Mae Representative. Point blank he said that Fannie Mae will not accept anything else but "Fair Market Value". He said that they order BPO but also they handle their own evaluation based on their sold REO properties in area. Also he said that they will ask agents to list property higher than "FMV" , because.....his words " We are like any other seller. We want to have room to negotiate". There is few problems I see with that.

1st) Fannie Mae is NOT SELLER in this situation

2nd) and most important...Yes. Market improved. By a lot in our area, but if buyer is willing to buy overpriced home, they still have inventory to choose from in regular sales, without waiting for months ( or years) to hear " No, Maybe". Well... We will see in year or so where this will go. But I agree with some - Home Path, no appraisal foreclosure- that is where this leads. Honestly....Just few years after we had to bail them out....They are going in the same direction. And right now they don't even pretend to do the right thing. They just give mortgage for overpriced listing with only 3% down. Can you imagine how well their " books" look right now ? And I wonder who knows ( except for Real Estate community and of course Fannie Mae) how false those numbers are...Scary.   

House on market since January.  Started at $249,000 with no interest.  Reduced to $239,000 and finally got an offer at $230,000.  Fannie Mae countered at $260,000.  Buyers ordered an appraisal, which came in last Friday at $235,000.  I submitted the dispute through the new Fannie Mae escalation tool at "Home Path for Short Sales" website.  I was informed yesterday by the Servicer (Nationstar) that the value dispute was declined and the value will not change from $260,000.  So Fannie Mae gets to ignore appraisals?  Do they also ignore appraisals for loan origination?  I have decided to stay positive and assume this is a "mistake" and will request a re-review.

To answer your rhetorical question, yes, FNMA ignores appraisals - on their own properties. They are happy to foreclose and put the property on their website with their now typical 20% inflated price and offer buyers a **special** deal. Buyers do not have to pay for their own appraisal, FNMA will "let" them buy the property at the inflated price with a new FNMA loan. Yes, FNMA is trying to recreate the worldwide financial debacle of the 2008 era.

I would do the request as you are, however, seeing that logic and ethics have little to do with FNMA since it is a trough-swilling fed bailout, I would complain to the state AG and a state senator and let FNMA know this when doing the re-request. Some people are getting results through the TV news or political paths.

Barbara, I have a non-FNMA with NationStar and have had the same problem, so I wonder in your case if it's FNMA or NS.  I had an accepted offer via Equator in Jan 2012 for $203,000 but we couldn't get the second to agree to the contribution and it fell apart. The second then extinguished the lien late last year. A new offer of $203,000 in October was countered at $245,000: needless to say that deal walked.  Realtor assistance finally seemed to "get it" and new appraisal was done in February. I was told $200,00 should get it done. Submitted $201,000 and last week was countered at $220,000 and a $20,000 promissory note. UPB is $178,700, payoff is almost $210,000.  I just keep remembering early on when I spoke with a contact in the Executive Office and she bluntly told me "We don't want to allow this as a short sale and don't understand why it was accepted." (divorce, job loss??)  "If it were up to us we would just foreclose and make more money."  I can't say I wasn't more than a little stunned by her candor and now think it's just the way this is going to keep going.   I will never accept another NationStar...I've always said you can get a bad one so I never write off a lender, but this one has been going on for 18 months and EVERY contact has been a disappointment.

Good luck!

first fannie has an appraisal done, upon my listing of the home.  offer rejected..ridiculous counter.  valuation dispute rejected..same counter.  buyer walks.  new offer, nationstar rejects, valuation dispute entered with buyers appraisal.  fannie says fannies valuation has expired, ordered a bpo!  supposedly in MN, they are only using appraisals!  still not response a week after bpo was submitted by the local agent.  I just tweeted fnma..will see what I get now!

 

tweeted?   

when in doubt, look on twitter.  I actually got a response from the call center within a couple hours..not that they did anything..they did say they would contact the short sale valuation team and ask them to expedite the file, but they have no phone number or direct contact persons that they could give me.  they can also not offer any updates.  they also told me to request nationstar postpone the sheriffs sale..as if ns will listen to me!

I have encountered similar issues with FNMA in Maryland. Had a buyer with an FHA appraisal $40k under where Fannie valued the property. Got absolutely no movement after a dispute. No explanation for why the appraisal can not be honored. Seems like they're trying to get more deed-in-lieu and foreclosures. 

I totally agree!

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