Updates on Fannie Mae & Freddie Mac Inflated Value Issues
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.
Replies to This Discussion
-
Permalink Reply by Courtney on
-
Rain-
How long did it typically take to get a reply from Fannie Mae once the dispute was submitted through homepath ?
Thanks!
-
-
Hi Rain,
I am running into this issue a lot and I am curious as to how much longer the process took with taking it to the Consumer Finance Protection Bureau and OCC?
Thank you,
Mary
-
Permalink Reply by Marti Sauers on
-
AMEN Rain! Short sales take work. And the most important work is on the front end. Fannie Mae is a business. They nearly went out of business because of the mess. In May 2005 FNMA stock was trading at $60.00/share. Today they're trading at 90 CENTS! They are trying to recover, as any business would, and the only way to do that is to get as much as possible for their remaining inventory. "They" are not a "they" at all. Don't take it personally. FNMA employees are doing their job as their jobs have been defined.
Submitting Comps on the front end is a great first step as Rain outlined above. When the BPO agent (and now appraiser) comes to value your listing, talk to them. Adjust your showing instructions to be SURE they have to talk to you. If the BPO agent is from another region and they have no clue about your particular market segment (happens a lot in Phoenix) or if they sound like they have a chip on their shoulder, anticipate the issues, I will even go take the ARMLS box off the house and change it to a contractor box. When they call, offer the information you offered to the bank on the front-end. Some will take it, some will not. If they say they don't want it and you can't send it to them by email, take it to the house and meet them there. Hence the restricted access.
Valuation disputes should be a given in this market. They take tactical strategies and you should anticipate that you'll need one -- start the research from day one. I don't submit the CMA from the MLS. It's my starting point, but I scrub the CMA. I submit the best 3 or 4 planos, but even that's not enough. Write a valuation summary -- tell them what you want them to know. Don't leave it to the underpaid, overworked asset manager to understand your listing. Give it to them in bullet points and make sure the Seller's voice is heard. I even provide aerial photos if the home is located in an undesirable area such as backing to a major road or other nearby businesses that affect value. I use arrows and text boxes to get my point across -- draw them a picture. It's worth 1000 words. If you are not doing this, you have a much higher risk for failure of the short sale. And, if this sounds like too much work, I'll be happy to take the referrral. :)
-
-
Bravo Rain, appreciate the input. Marti, your suggestions are valid and work to avoid over inflated BPO's but not the over inflated counters from Fannie. When the BPO comes in 20% under the counter from Fannie and the BPO is on target pulling comps and disputing value won't change their counter. Freddie is starting to do this as well. Appreciate all the input, thanks guys.
-
Permalink Reply by Kevin - Greenville, SC on
-
Yep.
Kevin:
Unfortunately, my agreement with Clear Capital does not allow me to discuss specific values, but I will tell you my original submission was kicked back by quality control and I was asked to add and strongly consider a sold comp. from the neighborhood. This raised the value $10,000 and there was little more they would allow me to do.
-
-
This comp was a year old and in far superior condition.
-
-
In the same boat. Have a property, vacant now for about 2 1/2 years. The property needs a new roof, fascia, termite infestation, rat infestation and raccoon infestation.
The house is listed at $55k and the seller accepted an offer of $52k. Its a BOA Fannie loan. Sent everything through Equator. It was fast too. Within 10 days, the BPO was done and we had a counter of $70k. Ok, where did that come from. Not one house within a 5 mile area has sold for that price in 7 years!
So, we told BOA that we are disputing the value. We did a very detailed CMA, detailed photos and have now submitted the file to Homepathshortsales.com. We are waiting to see what they said. One of my comments to Fannie Mae & BOA is that whoever they are hiring to do these drive by's are 1. not very experienced and are damn lazy. You can see the hole in the roof from the street but it was never mentioned in the BPO.
-
Permalink Reply by joe beauchamp on
-
BOA, WF, etc appear to do all the things one would do to make a short sale fail. I previously thought that most of their "specialists" are incompetent and very slow, but have to consider that their management is smart enough to come in with record profits each year AND incompetent to manage SS specialists. Not likely.
Fannie (and lesser, Freddie) seem to have one or more of the following: believe that the market is going up so push a higher price; push the idea that if you ask for outlandish things, you'll get more than if you don't; and with fannie, happily foreclose to list on their website at 20% above market offering the buyer a "deal" of skipping the appraisal and giving them a mortgage at 20% above market. To me, these range from possibly reasonable thoughts to outright fraud.
Freddie seems to listen to reason if you put it in their face enough - way beyond what should be reasonable. My broker has had success with Fannie's website, too. So, there is hope as long as you are willing to persevere.
I ended up with 4 or 5 value disputes in less than a year with Freddie on 1 property, and they actually demanded the last 2. Yes, insane - as I said, persevere. The only thing you didn't mention, but likely did, was put your CMA at 3rd grade level. Don't make them think or work on drawing conclusions. Make your points jump in their faces. Some agents will just have pictures of the hole in the roof. Nope, rub it in their faces - point it out, estimate the value drop because of it, why comp A should be $20K more, etc. Do their job for them. I believe that they will normally actually appreciate it - they're busy (OK, doing donut runs, probably - but still busy, right?).
-
-
How long will it take to get a reply from Fannie Mae from the homepath site?
-
-
about a week.
-
-
The BPO is just one factor they use to determine value.
Escalate the FNMA SS - http://www.homepathforshortsales.com/contestvalue.html
Bob Martin, vice president of valuations at Fannie Mae, said they have a dedicated team to estimate values for all foreclosed and short sale properties. “To help estimate the values of distressed homes, the team uses appraisals, which are required for all short sales, as well as Broker Price Opinions, and data from other internal and external sources, including current listings, pending sales and sold properties,” he said.
http://www.realtor.org/news-releases/2013/05/short-sale-approval-an...
-
Permalink Reply by Fred Bauscus on
-
Do you have any contact info for Bob Martin? I've tried to contest a value that included an appraisal from the first of the year and they are holding firm to a value almost 40% above the appraisal.
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons