Forum

I was googling my “issue” trying to find information on anyone else who may have experienced FNMA’s valuations department coming back with a short sale counter-value completely out of line with the lender’s BPO appraisals and the market value of the subject property; in brief:

• I am the listing agent for the condo; first lien only; definitive hardship... textbook short sale
• Another agent with a cash buyer; completed all documentation to support offer and market value through a detailed short sale package
• First lien negotiator (HSBC Mortgage) completes BPO’s which support the offer
• Package submitted by HSBC to FNMA and in their valuations department for a month now… with sheriff sale scheduled next month
• HSBC informs that they are not willing to adjourn the sheriff sale due to additional costs incurred, as FNMA gave them the green light to carry negotiations through redemption… so obviously, this becomes more of a detriment to the seller (non-avoidance of foreclosure) even if we can successfully complete the short sale during redemption
• FNMA responds with their own “estimation of market value” based in part (I was told by HSBC) on local assessments, etc. and comes back with a counter to this offer over 85% higher than the existing offer – completely shocking to me, and supposedly to HSBC, who claims their hands are also tied
• I'm waiting now for the sheriff sale bid, hoping that it will be in line with or less than true market value; we may have a chance to redeem with this or another buyer... but if it's a full credit bid... the bank will get it back in six months

Has anyone heard of such a thing? I emailed FNMA corporate headquarters, but doubt I’ll get anywhere without an inside track to someone in their valuations department who might hear my plea… especially since I can prove the market value in this condo complex is even less than the existing offer, which has been in the works for 5 months.

Any recommendations?