Aurora says "investor" (Freddie Mac) demands more than fair market value to approve SS. WTH???
So far all of my experiences with Aurora have been horrible and I've yet to successfully close a short sale with them. However, this time I'm not sure if it's Aurora or Freddie Mac that's being ridiculous.
Aurora comes back with a counter-offer of $240,000 (to an offer of $210,000 on a property listed at $225,000) and says it's based on the BPO. Rep says there is nothing I can do to dispute the value and the investor will not consider anything lower. If the buyer will not increase the offer to $240,000 the short sale file will be closed. I say I may be able to get the buyer up to $220,000-225,000 but anything higher will likely not appraise. He says it's $240,000 or nothing. Then he says their minimum net must be $218,000 (the numbers just don't make sense...)
Now, I met with the BPO agent and we discussed this property and all the comps in great detail. Property has been listed since April and is currently listed at $225,000. I call the BPO agent and ask what comps he used and he is shocked to hear what I have to say because he turned in an as-is value of $220,000!!! That's right- the BPO value is accurate but the counter offer is way over market value!!!
I have gone round and round with Aurora for a week. One minute they claim the BPO is $240,000 and when I argue that I know that is not true they say BPO value has nothing to do with it. I tell them the buyer has walked and ask should we take the home off the market. He says, if you can't get $240,000 take it off the market because the investor knows what he can sell it for after foreclosure!
Has anyone ever had a servicer or investor demand more than market value??? They DID NOT ask for a borrower contribution so that has nothing to do with it. They have stated that the investor will not consider any offers below $240,000 on a property that they know is only worth $220,000.
BTW- this evening the rep finally did admit to me that the BPO is, in fact, only $220,000 but "the investor has reviewed the BPO value and still wants $240,000 for the property".
HELP!!
Replies to This Discussion
-
Permalink Reply by Cathy McAlister on
-
We have experienced some negotiators coming back with amounts that are much higher than the BPO's. As always, it's tactical. Probably their way of seeing what, if anything more, they can get from the parties.
-
-
Permalink Reply by Kelly Walters on
-
Cathy,
I'm used to "tactics" but Aurora actually declined the offer and closed the short sale file!! 3 months later, we've been unable to obtain any new offers and they still haven't set a foreclosure sale date. LOL
-
-
Permalink Reply by Mandy Berreth on
-
Look to see if Freddie or Fannie own the Loan, if they do ask them for help. I've had them help me several times lower fair market value. Aurora is NOT a good servicer for investors. They do what they want without the approval or review of the investor. Make sure you always ask to do a BPO dispute. :~) Good Luck!
Kelly Walters said:Cathy,
I'm used to "tactics" but Aurora actually declined the offer and closed the short sale file!! 3 months later, we've been unable to obtain any new offers and they still haven't set a foreclosure sale date. LOL
-
-
Permalink Reply by Bob Bridge on
-
Ask to escalate to a Supervisor. In the mean time prepare a NPV showing the foreclosure value and REO value. You can get the NPV spreadsheet from the FDIC website. If you can't find it let me know and I'll email it to you. Ask the supervisor to send this NPV result along with the comps to the Investor. You should get a result. If not have the seller send a letter (certified) requesting the Investor on the note (they have to respond with the full investor's information). At this point they will probably work with your numbers. If your still having problems file a complaint with the OCC (helpwithmybank.com) they hate this because it can get them in trouble. Once the complaint is filed you will be assigned a dedicated supervisor until it is resolved. Hope this helps, I know it's a lot of work but we are here to help the seller. Good Luck!
-
-
Permalink Reply by Catherine Myers on
-
I will say that I have a short sale deal now with B of A, but it is also Freddie Mac as the investor and it's the most ridiculous thing I've ever seen. Freddie Mac is HORRIBLE, they won't talk to you on the phone like Fannie Mae will either.
They came back with a counter offer on this one that is probably 30% higher than market and 20% higher than the list price that no one would buy at for the 6 months we had the condo listed. I'm not sure if they got a bad BPO or they are just using some other formula unknown to the rest of the world. I appealed the value, and they won't budget, yet to me... this means they are ignoring good market value comps. I start to feel they want to foreclose no matter what happens, and if this is the case, I wish they'd be honest about it so we stop wasting our time.SOrry, I know this conversation is OLD but I just wanted to add a Freddie Mac story, and I'll bet there are many more like this out there.. I'm sick that taxpayers would help an entity like this.
-
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons