Fannie Mae and Freddie Mac are now dictating market time. Short sales that are Fannie Mae or Freddie Mac loans must be active in the MLS for five days, including one weekend period, before an offer can be accepted by the seller. 

Read the article. http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id...

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Harry that would be impossible to do if Fannie Mae would just simply get an appraisal completed by a local appraiser.  If Fannie Mae accepts the low ball offer that is 100% their fault.  

I can not understand how a low ball offer would get accepted if Fannie Mae actually did their due diligence.  Realtors can steer their short sale properties and double end every single deal but if Fannie Mae simply took their head out of their rears and did their job, low ball offers would be impossible.  

The scammer agents are still going to find ways around their 5 day rule.

I would not have a real issue with this if Fannie Mae would have some standards and if they would actually care what market value is.   By waiting 5 days, Fannie believes that the market will dictate the price that the home will sell for?  If that is the case, Fannie needs to accept the offer and not counter with an value that is above market.  Their thinking is that the property is what someone will pay after exposing to the market for a certain period of time? If that is the case then the offer that gets submitted after their waiting period would be the value of the home.  Fannie has no idea what the highest and best offer is and has no evidence that holding the home on the market for 5 days will get a better offer.  

Sure there are agents who are scamming the system, that will NEVER go away.  If Fannie is worried that they are not getting market value, there is a very simple solution.  They hire a local appraiser to do an appraisal on the home and stop hiring agents that do BPOs and then they base their decision off of the actual appraised value.  They then get market value for the home.  If the offer that came in the first day is off from the appraisal then that offer is countered at appraised price.  

Fannie wants to play games with market time but they sure don't have any cares about how long they take to process and decide on the short sale.

I realize that real estate is local and it totally depends upon your market.  I had four Fannie Mae short sales last year and they all came back for more money.  Buyers all brought in the extra money with sometimes a little help from agents.  Six months later, they ALL would say they had an awesome deal - similar condos are selling for 10% more and houses selling for 15 -20% more.  Believe me, I was yipping about the valuations like crazy but...it all worked out.  Statistically, it seems in a seller's market, if you have the house on the market at least one open house weekend and preferably two, you would have a better chance of getting  multiple offers and be able to counter the price up.   In a regular sale, I would always have at least two open houses to build interest and generate multiple offers.  Not all markets are getting multiple offers but...it seems like most are.

I wonder what a thinking entity would do to solve perceived agent manipulations. What is the real goal of these bailed out investors in adding layers of rules that are beginning to look like half baked US tax code. It does not appear to be to actually get a market price and quickly get the best value for the investor.

Last summer, the banks changed from a default of usually 2 weeks to get a response from the seller, etc., to 3 calendar days - and, seriously, still the majority of counters I have gotten came in Thursday around 8 PM, meaning I had Friday only to get a buyer response to some insane counter. FNMA FHLMC had no issues with this while the servicers demand docs would take weeks to months to bother to look at them, often requiring newer docs because they didn't look at the "we must have in 3 calendar days" docs. How many buyers said, "ENOUGH" and walked? I'm guessing the ones that offered market value were the first to walk. Any complaint from the investors? Not obvious to me if they did - still can take forever to get the servicer to look at docs "required" in 3 calendar days or they kill the file.

And getting an appraisal by licensed appraisers to get close to a true market value is absurd to these "investors" instead of adding to layers of back room concocted rules with no basis? Why 5 days is some unexplained magic number? Do they offer up language for the agent to post on the now bait and switch MLS non-ad for this property for 5 days? "Come buy this house - oops, I was just kidding, but you can buy this other one instead." Nope, they don't. I guess they are too used to D.C. politics to understand that in the real world, bait and switch, pretend selling things is between underhanded and illegal for normal people. I guess it is the norm in their area.

So, these "investors" exhibit little interest in getting their servicers to conclude the sales and they don't see the value in actually using licensed appraisers to get a value for the property. Are they just waving hands and making rules to appeal to Fed trough watchers - so that they appear to actually be doing something to justify employment? Or are they adding more hoops to discourage agents from attempting sales so that they can foreclose more to feed houses to their pipeline of REO preferred people and not look like foreclosing vultures to the public?

Most answers are not clear to me, but some are. How many (any company) executives would put up with the shoddy work done by servicers year after year if it really mattered to them? Sorry, I've tried to say nothing, but some good points have been made here - much much more thought than these "investors" appear to have made (do I really think they could not have reached better solutions if they wanted to?).  Someone has to work for the good of the country instead of the few money people behind banks and other big biz before we stop getting eaten as tax payers - hopefully before China eats our lunch. I can't make that change here, so I've tried not to add to the frustration - uh, but couldn't resist?  :-)

Ron, reading between the lines of Joe's post makes complete sense to me.  Fannie Mae wants to play the victim, they want to make it look like the real estate community is out to screw them.  If Fannie would just do their due diligence and stop the game playing, there would be no way to screw them.

Lets say you own a home as Joe Homeowner.... Your home just appraised at $200,000.  You know how much your home is worth, 200,000.  You get an offer on day one of $200,000.... would you take it on day one or "wait" to make sure there are no other offers?  Maybe wait, take the chance?  Take the offer and move on? 

Lets now change this and say you get a low ball offer from an investor for 150,000.  Do you take it?  Counter?  Reject it?    If you accept it, is it the buyers fault that you accepted it?  Blame the buyer for making a low ball offer?

Should not be much different with Fannie, ultimately they decide if the offer is good enough and if they take the low ball offer, that is their decision and their fault if they lost money from market value.

Well said.  My issue goes back to the claim that Fannie Mae is somehow going to get more money for a home by requiring it to be on the market for 5 days.  Again, if Fannie gets an offer for 150,000 and the property is worth 200,000 and they accept the 150,000, that is an internal problem with Fannie Mae and not with the agent and buyer that wrote the offer.  

I will tend to disagree that Fannie does not play games because I have been involved and caught them red handed playing games. Saw it first hand with my own two eyes sitting right in front of a senior VP at Fannie Mae.  Will share with you sometime privately.

My point is that the "rules" that Fannie comes up with really do not make any sense, sure we have to play by them but that does not mean we won't try to change their rules.  Fannie Mae is really good at one thing, that is losing money by making terrible business decisions which they continue to do.  

Simple thing for them is to first decide if the borrower qualifies for a short sale in a timely manner and not in 3 or 4 months.  Second they hire an appraiser to evaluate the home and determine a selling price. Third they work with the agent to market the property and get the best offer.  Then they can approve based on the appraised value of the home.  How tough would that be?

Makes too much sense my friend... too much common sense.

That's right Ron, it's a conspiracy theory that your bank executives or a McD's manager would not put up with the apparent incompetence displayed by WF, BofA and other bank "specialists" who need docs submitted over and over, can't possibly respond for weeks, etc. Oh, wait, the people who read these generally have some initiative and intelligence and might instead think that it is reasonable to expect competence in a bank employee at least at the level of a McD counter "specialist". Conspiracy theory? Well, they ARE handling $5 items at McD's and not $250K items, so I guess it is crazy to expect at least the same amount of competence. I guess bank managers are just real stupid and incompetent compared to McD managers - you must be right, what am I thinking??

I especially have to smile at the "well, we have to play by their rules" when confronted with logic. Yes, I get it, don't look at the man behind the curtain - it's all in your head. HA..

Dont even mention the recent BofA foreclosure scandal in which employees were paid to help foreclosure instead of short sales

Scandal? Nah, business as usual. I'm sure you saw the affidavit on the net a year or two ago from a Chase employee saying essentially the same thing - Chase doesn't make money with loan mods, we make money doing foreclosures. But maybe that was just to keep their jobs and not for extra pay.? ;-)

Next you'll tell me that years after finding the NSA wired directly into AT&T, you're surprised that they are also into cell phones. They haven't yet said that they are recording them, so we have that scandal coming sometime. Ha, I'm pretty sure you felt these things have been going on - you're a bright guy...

You go Joe....when you first hear about something, you just can't believe the corruption.  How could that or this possibly happen.  Our government would look out for us, not themselves.  Then the proof comes out and it can't be disputed.  Then we as lemmings allow it to happen because we are too busy watching, Dancing with the Stars or something like that.  Nobody ever pays for the illegal or unethical actions so they keep pushing the envelope.  People like Ron should turn off the TV and look into things and not just allow it to happen.  This country is going to hell in a handbasket, but its still the best place to live on the planet.  Kind of like being the best looking turd in the pile.

Not only am I not happy about this but I don't agree with this either.   The MORTGAGE INDUSTRY/GOVERNMENT wants to run our industry.  I don't like this.  I want my rights as an American citizen back.  It is time we stood up to this!

That said, I know it will never happen...........not enough people with guts to do so!

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