What is going on with FANNIE MAE? I have 2 deals right now where I know the BPO for the servicer came in at the offer price and FANNIE MAE countered $20K more on a $220K priced home with no comparables in that range and $55K more on a $45K home. I sent in great value disputes to www.homepathforshortsales.com and I basically never hear back from them on what happened. When I follow up with them, I get a response back to contact my servicer and the servicer just says that they still want these crazy prices. Does anyone have any ideas on how to get FANNIE MAE to even seriously look at these value disputes AND how I can get someone at FANNIE MAE on the phone, who can actually tell me what is going on and why they would rather foreclose and then accept an offer at or lower than the ones that have already been submitted?

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Holly, welcome to the Fannie nightmare.  The only way my disputes work is to have the buyer get an appraisal through their lender, or if cash, get a Fannie approved appraiser.  Send the appraisal in to your contact at Fannie. It works.  You have to be diligent and NOT give up!  There are plenty of threads on this site addressing this issue.  Good luck!

I have found this it not an option in my market as Buyer's aren't willing to absorb that cost and their Agent is not willing to advise them to do so when the outcome is still uncertain.

Replying to Brian, I might see if the buyer will do that and take that monetary risk. It was suppose to foreclose 6/3, but I  don't know if there is a new date where we have the time to take that risk. I have had appraisals done a few times in the past and you are right, they do seem to work most of the time.

Holly,  FNMA doesn't base their counter's on BPO's solely.

Bob Martin, vice president of valuations at Fannie Mae, said they also have
a dedicated team to value all foreclosed and short sale properties.  The team includes 2,000 appraisers around the U.S. who can produce valuations in their local areas within three weeks.  Fannie Mae also uses Broker Price Opinions and data from other sources including current listings, pending sales, and sold
properties, Martin said.

http://www.lenderhookup.com/?p=4905

This is absolutely not what is happening. Fannie Mae's value dispute is NOT working and they don't communicate well. Sometimes, the values can be flexible (comps all over the place) or I basically have a lower offer and I can see why an investor counters higher. This is not what is happening on the ones I'm currently dealing with. There aren't any actives, pendings, or solds anywhere close to their counter. If they want more net based on other factors besides the BPO, etc. and feel the seller makes enough to help out, then they should just keep the good offer from the buyer and counter the seller for a cash contribution or note. Or it would be nice, if they at least communicated honestly and said for example, "Your offer is about where market is, but we can't approve this short sale because of ________". Otherwise, this is frustrating and we all keep spending a lot of time doing value disputes or pay for appraisals out of our pocket when the value isn't really the problem. Obviously for some reason it is better financially for them to foreclose and get the same price later. I want Fannie Mae to tell us all why that is so. I am assuming that they must get some extra money from somewhere doing it this way.

On this deal that I was referring to, I sent in another updated value dispute and the Fannie guy writes back just yesterday, "It is foreclosing soon, just have the buyer make an offer when it is relisted". The foreclosure date was pushed out or put on hold, so I wrote back and said that the date was put on hold and to please review the comparables which were all similar, within a mile, and were all generally the same price as the offer or lower. I begged them to actually seriously look at the information that I provided.  If you have a connection with Fannie, the dispute # is HSS-10602. Have them call me.

There are no buyers willing to pay more than what they can get somewhere else just like with any listing. To be honest, even if they were willing to pay more, it would never appraise and we are running into that here in Utah a lot.

Thank you everyone for your responses and support and thank you Kevin.

I would tend to agree.

Thanks Victoria. That is insane. Kevin, can we get Albert Bryant or Bob Martin or anyone at Fannie Mae to give us some answers.

Yep.  Albert Bryant, Manager of the Short Sales at Fannie had touted how Homepath would streamline things, and bridge a gap between the servicer, investor and agent, and it's the biggest joke.  They don't even respond.  I mean man, if I want to wait 72 hours for a response, just deal with the servicer.  Oh, and they have a valuation model that's a joke too.  They have AS IS, some middle amount and then, BEST CASE SCENARIO and that's what all these values are being based on - Best case scenario.  I talked with someone last week who had an offer for $250,000 on a property and he marketed the crap out of this thing.  Fannie countered at $350,00, but here's the kicker and it's pretty funny.  Homeowner owed $318,000!!!  It's just a joke and of course the buyer walked.  I have a sale I'm just starting that another agent tried three times to get sold.  Same thing.  Homeowner owes $360,000.  Last buyer came in at $350,000 - Fannie countered at $380,000????

 

The homeowner has had the home listed over a year and 1/2 and not one sale out of 4 was approved.  It makes no sense. If you want a short sale where the lender actually deals in real valuations, make an offer on a non-gse (haa..those aren't guaranteed either)

I agree, I always have 2 or 3 Fannie Mae value disputes going!  On my 3rd buyer and 3rd value dispute on one property....Fannie Mae is not short sale friendly right now:(

Yes, responding to Smitty, that same thing with the counters that net much more than is even owed has happened to me a lot also. I had one foreclose about a year ago where they countered 30% more than what the house was worth and more than what was owed, and it eventually sold for less than our offer. And this happens all of the time.

That is why I want the truth. If they say they have to get their full payoff; otherwise, we will have to foreclose because the government will pay us the shortage, then just say it. By the way, that was just an example, I'm not saying that that is the truth. I don't know why they are doing this. So please, someone who knows, tell us before we all go crazy.

my seller, the buyer did do a full out appraisal as his agent and myself had compped the property ad nauseum..there are few comps in our rural area.  appraisal matched our opinions.  fannie ordered new bpo,..their counteroffer stands..22k above offer and appraisal.  buyer 2 walks..I agree, if they are going to foreclose anyway and get our taxpayer money to make them whole, then just quit dragging innocent people in pain through this.  sell it via homepath with no appraisal afterwards.   Record profits in one year for Fannie..what a freakin joke has been played on our taxpayers.

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