I was talking to a contact of mine at Fannie Mae today and I asked him why the servicers are coming back with such high purchase offer values lately.  He said that the servicers are supposed to use the GROSS VALUE (aka as-is value) that is in the Fannie Mae guidelines rather than the NET value to establish the purchase price but some negotiators use the wrong value.  Do you'all think this could be the problem?  And if so, why wasn't this happening before? 

Views: 802

Replies to This Discussion

So my clients who were wrongly foreclosed on because of the exaggerated gross values can sue them?  Do they plan on correcting this?  It's still happening.

It didn't sound to me like Fannie Mae is doing anything about it.  I think it is up to us (as usual) to educate the servicer reps and make sure we question them as to which value they are using to come up with the purchase price. 

You can sue for anything. Whether they are successful or not. well.......

Gross is higher than the Net so that doesn't sound right.

Fannie Mae is forecasting values.  They are predicting future values and countering based on their own hypothetical math.  Remember that Fannie Mae can foreclose and sell the home for more than market value with HomePath financing, no appraisal required. They make it pretty easy for a buyer to use their HomePath product and in turn the buyer can pay more than appraised value because they do not need an appraisal.  Could be another bubble being built.  Fannie says the home is worth 200K when it is really worth 175K but will finance the buyer at 200K, putting the buyer in an underwater situation.  Happens alot in my market where Fannie Mae REO has a HUGE presence. 

Wow, your comment, Jeff is pretty scary...I am in the middle of a FNMA short sale. FNMA says their appraisal came in at $240k.  The purchase price is $150k.  The home needs $125k worth of rehab (major plumbing issue) and will sell for $285k.  FNMA after rehab value is $325k?!?  The buyer did his own appraisal and it came in at $165k, with remarks from the appraiser that we are in a declining market!  All of this info plus pics was sent to FNMA to dispute the value and they stuck to their price of $240k.  Now, 2 weeks later, I have submitted further poof that there is extensive mold (because of ongoing plumbing issue) and they responded that the plumbing issue was resolved years ago?!??  REALLY, and that is why the master bath has not been used in 2 years!! (totally rotted and rusted out!)  The under slab plumbing was fixed 4 yrs ago BUT was not done right and has reoccurred. This is a small gated community that has 3 FNMA /REO homes on the same street that are not being marketed since Oct. 2013??   Wish me luck on getting FNMA to come to reason!! 

 

Who within Fannie are you escalating valuation issues to when no positive response from negotiator? Name, phone, email?

I just got told by Fannie Mae:

"This is XXXXX XXXXX  with Fannie Mae’s Short Sale Escalation Desk providing you an update on case HSS-XXXX.  Our analysis of the dispute documentation you provided for this case is complete.  After reviewing this information, our internal valuation, and market conditions, we suggest an effort be put forth to acquire a gross offer amount of $180,000.00.

 

Please make sure your current offer and any future offers regarding this property are delivered directly to the servicer for consideration.  The servicer will convey all decisions regarding short sale offers.

                               

Thank you for using the Short Sale Escalation Desk"

WE SUPPLIED AN FHA APPRAISAL AT A VALUE OF $170,000.00 WITH EXTRA SUPPORTING COMPS.

Is there anything that can be done at this point?  I mean, it is an FHA appraisal, dont they have to adhere to the FHA Amendatory Clause?

The lender can ask for whatever amount they want. My experience is they will accept 90% of the value as a purchase price. $162,000 should do it based on the value of $180,000.

Call me crazy, and some have, but I've never seen FNMA tied into an FHA loan. If it is FHA, the ATP states the value and you need to net x% of that value. FNMA ain't involved. Talk to HUD if you really have the ATP and all.

FNMA has admitted to inflating valuation by 20%, that is not new and I'd love to see the lot of them do jail time. Alas, bankers skate and kids stealing cigarettes go to jail until 21. Just something to enjoy about our current society.

The short sale is a Fannie Mae short sale and my buyers are buying with an FHA loan.

I am assuming that the appraisal report ordered thru and independent source, governed and supervised by the Federal Govt. does not hold water in front Fannie Mae.

RSS

Members

© 2024   Created by Brett Goldsmith.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************