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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Similar issue, FM countered at 41k ABOVE the sales price, comps in the area are nowhere near the counter. The listing agent escalated through homepath on Wednesday with an appraisal in line with offer. What are the odds they will accept and how long will it take to even get a reply

Yes I did.  I included an appraisal and a bid for needed repairs of 60K.  Additionally, the servicer slipped and told me that their own appraisal came back very close to the one the sellers had done.

Is that true for value disputes as well

Fannie Mae has formed LLC's and started buying their own foreclosures at auction.  i am wondering if they are now figuring their "net" return on what price they assume they will get to buy it at auction, rent it and sell it for later vs. short sale now.  if they do not get that figure now they will just foreclose.  

also, the government receives most of Fannie and Freddie's profits and it isn't reducing the 160billion they were given by taxpayers so i think the government feels that gleaning this money is more important to the taxpayer than allowing some of them to short sale their property.  kind of that "maximizing shareholders value" philosophy as Jamie Daimon stated in the interview with Forbes.  

 I love Superstars! Thank you all for your contribution on this topic. On ever one of my files I find so much helpful stuff for me to get through this SS crap.

I just spoke with another appraiser who chooses to remain anonymous.  This appraiser used to do alot of appraisals for Fannie.   I confirmed that they no longer do appraisals with Fannie Mae because FNMA always pushes the appraisal back and asks for higher values.  This appraiser would change values for FNMA so FNMA does not use that appraiser anymore.  

I know agents who do ALOT of BPOs who get the same pushback when doing BPOs, they are constantly being told to use different comparables or to change the values.

I am working with a Fannie short sale now.Fannie sent out 2 people to do BPO's, then they inflate the price to a number which is higher than any comp of a similar type/size property in the area. Buyer's won't look at the property at the asking price. 120 days have gone by, BofA is closing their Equator file. The processor at BofA was non-existent, her voice mail was never set up! I esclated to a manager who was responsive, understood the problem we were having, and couldn't do a thing about it. The foreclosure has been scheduled. Is this intentional on Fannie's part, pretending to work with borrowers to do short sales while working to get the property into foreclosure? You bet. 

Kathleen, is anyone willing to do an appraisal? What is the value of the home and what purchase price are they countering you too? When is the foreclosure sale date and what state are you in?

I can try to reach out to some people if it is not too late and try to help.

Shoot me a private message or feel free to give me a ring.

Lyonel Katz

888-664-6561

I just lost my first short sale to this scenario.  First in 3 years!  It's a Fannie Mae.  The servicer is GreenTree and after 5 negotiators,  6 months, and nothing in writing throughout the entire process, the servicer called me with a counter that was $20,000 over the offer price and more than the list price.  The home is in a terrible location and for that reason, I submitted a valuation analysis with the offer, including maps of the area and many comps.  GreenTree did several BPOs and two appraisals. 

When I got the phone call while I was out with buyers, I explained that I was out with a client and asked them to send me the counter offer information in writing.  It was 5:30 pm.  Not only did they refuse, but they were only giving me until 5:00 the next day to respond and suggested I 'pull over so I could write it down."  We had a back-up offer but it cancelled as well.  Even with that, to get the offer in place, the new HUD, and uploaded in 1 business day is ludicrous after they sat on ti for 6 months.  Many parts of Phoenix are on the rise, but this area is only up slightly in the past 6 months.  

I escalated the file more than once.  It did no good.  Greentree would only provide me with the counter offer top-line requirement, not the net.  When I asked for the required net, they flat out refused to provide it.  When I tried to escalate again, I was told the file was closed and there was no recourse.  They also claimed they never received the net requirement from the investor.  

who did you escalate the issue to?

I am sorry to hear your story Marti.

Definitely there are some short sales that are such a workout to get done. Green Tree can also be tough because they do not respond to emails or send emails. Sometimes they will release their email address so you can submit items, but that's just about everything I've seen. It makes the lives of agents more difficult because going back to a seller or buyer with a counter and nothing in writing can be difficult depending on the circumstances.

Are you located in Phoenix? I saw that you mentioned it briefly.

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