Working on FHA short Sale through Wells Fargo - NIGHTMARE - they had an appraisal completed by an appraiser not familiar with the area (not member of local MLS, unfamiliar with localities, taxes, etc...) who valued property (Wells calls it Fair Market Value 7/2011) @ 105K (he used old sale 11/2010, larger units, different locality, totally updated, etc...) however there were two active listings in neighborhood one at mid 80's (has since closed for 80k - was 200sf larger with an additional bath) and one at 100k (still on the market & not a short sale) This clearly shows a declining neighborhood
I have had an offer in hand since mid-May (they made my client go late so WF wouldn't look at offer til mid-July) - HUD-1 shows a net of more than the 80k sale I mentioned above (think bigger condo, 1 additional full bath & 1st floor location)
The negotiator has sent it back to processing because the buyer did not respond quick enough for his liking (however no response time was given).
The processor (who works 3p to midnight CST) wants us to extend the listing and raise the listing price to the fair market value (determined by the BAD appraisal) It has been listed for less has only been seen a few times since it was listed almost 6 months ago
My two questions are: Can I contact FHA directly to intervene? and How do I make them see that the original appraiser did not know the area nor did he take into account the declining neighborhood?
Did I mention the neighborhood has expired FHA & VA loan approvals and there is a rental cap (which has been reached and has a waiting list) HELP!!!!
Any contacts at WF or FHA that I can call? All I get are emails and NO phone calls (except by processor, who seems to be trying to help, but calls me after 9pm EST)
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In an effort to ensure that the most current Fair Market Value is used for the Preforeclosure Sale, a Mortgagee may obtain a new FHA appraisal, even if the property was appraised by an FHA Roster Appraiser within the preceding 120 days.
http://www.hud.gov/offices/hsg/sfh/nsc/rep/pfsfact.pdf
We had a similar problem with WF on another SS. We built a case discrediting the BPO/appraisal and was able to convince the negotiator using CMA's from 2 other agents (from different companies other than mine). We also took detailed pix of the house and showed that the appraiser didn't have access to our MLS for accurate reporting.
We built a thick file and it worked, just overwhelmed them with information.
I have a similar situation playing out in MN with a FHA Wells loan.
A local short sale expert told me she has had success with having the buyer order an appraisal and submitting that appraisal to FHA
We will be executing that plan next week.
I will let you know how it goes.