Replies to This Discussion

Permalink Reply by Kevin - Greenville, SC on July 15, 2014 at 12:45pm

have you escalated via www.homepathforshortsales.com?

Permalink Reply by Andreia Dasilva on July 15, 2014 at 1:13pm

No yet. I just got the denied and I am working on  the best options.. so much stress but I will get done.. I got this website but I need to be ready to dispute.Thats why I am asking for help to do the best :) Tks a lot for replying ..

I will get contractor letters, BPO, appraiser ,…. I am not giving up !

Permalink Reply by joe beauchamp on July 15, 2014 at 12:57pm

You need to be persistent. These people count on them being paid hourly and you getting less and less per hour for all the extra work they throw at you. If you were diligent in explaining in the BPO why your property is worth less than each comp or why anything that sticks out makes sense, and you had the appraisal done by someone that the bank considers honest, and maybe included the same type of info for its comps, you did all you can at this stage to show them reality. (Being dumped from Equator is normal, ignore it.)

(FNMA has admitted to inflating the BPO by 20%, so don't count on their ethics to make this right. In this case, you probably have something else. They use a demented database for value that can be horrendously off. They feel this is giving them the true value of the property when they get to sell it in 6 or 12 months after foreclosure. It is pure bull, but, they also don't care. I think you've got one of those cases where some pencil pusher at FNMA is playing with funny numbers in the future.)

Having exhausted common sense and trying to find an honest person at the bank/FNMA, the next thing I would suggest is taking your information to a state senator, clearly laying out the facts and asking him to make FNMA honest. This has worked for some people.

If you lose this buyer, when you get another, hit them again with updated value dispute, etc. Be thorough. They need to understand that you won't let them destroy this seller for pretend profits to them in some imaginary (and totally unreal) future.

Permalink Reply by joe beauchamp on July 16, 2014 at 3:56am

OH, I thought you wrote that you already did a BPO and appraisal so that ship had sailed. Seemingly, that is not the case. If they closed the file in Equator because you didn't object in time, that is your fault, but no big deal, they are always trying to close files to stop the clock on their delays being logged. If it was closed because you had a pinhead useless negotiator (OK, really low level paper jockey these days, the closest to real negotiators are the closers), that is good because you'll get away from him and get a different negotiator (processor) this time.

Be thorough with your information. Assume you are sending the comps/value dispute/etc to a 3rd grader. They don't want to do any extra work so spell out everything. If one of your comps is $20K higher than your property, why? Does it have 2 more acres, a finished basement and 2 more bathrooms,etc? Do not expect the bank to think about anything you send them. Spell it out. Like a 1/2 bath is worth $5K in this class of property, finished basement is worth $10K, etc. Don't make them actually think, they won't. You need to add up the differences and end up pointing out that the comp has $XX more value than your property - so you wrote it down. This also helps your processor to quote you and send that to his boss, he is not on the line for uh, helping you??

If you are paying for your own appraisal, make sure it is an appraiser that works with this bank. You need credibility even with appraisals. Again, if you look over the appraisal and see things that are not spelled out (comp A is $5K in taxes, yours is $10K), point it out. Putting in the work to make things very clear is much more effective than trying to get the bank to look at something that they already rejected.

Permalink Reply by Fred Bauscus on July 16, 2014 at 6:04am

As far as equator is concerned, just re-initiate the short sale.  Unfortunately you will have to start from scratch on that end.  Hopefully you'll sail through the early steps as your docs were previously approved.

Kevin's right.  You'll have to take the value case directly to Fannie Mae.  Having an appraisal and BPO is great.  I'd also do a CMA and make value adjustments for the differences as Joe suggested.  Mine is literally a mini BPO.  You'll have to upload copies of the comps, so make notes and highlight the features that may cause a price difference.

If there are physical defects that impact value, get a bid from a licensed contractor.

I'll include a narrative describing your concerns, local market conditions, listing history, & a table of contents of whats included.  However,  I'd strongly suggest to never rely on Zillow for any kind of value.  It can be as bad as Fannie Mae's valuation system.