I was just told on a Wells Fargo, Freddie Mac loan that they won't accept doing a short sale on the property and basically said that their minimum acceptable net is exactly what is owed. The price that we would need to sell it for is about $50K higher than Fair Market Value on a $200K - $220K valued property. Wells Fargo did say that they are not privy to the BPO value that it goes directly to Freddie. We did get a BPO agent that many agents in our office have been having value problems with, so there is a chance that it is simply this BPO that has caused the denial.
Where do I go to file a value dispute with Freddie Mac? I've done Fannie Mae's several times on www.homepath.com. Does Freddie have a similar process?
Thank you for your help,
Holly Jessop
RE/MAX Metro
Layton, Utah
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I ended up faxing to 1-571-382-4942. I sent a letter of explanation for my value dispute and some comparable sales, along with a showing report with feedback from agents. Megan below was correct, they wouldn't even look at lowering the price they wanted until the seller was late on their payment. I resubmitted a new short sale package after they were late and so far they are down $40K from before, but they are very stubborn. The BPO was $225K and they are sticking to it so far.
@Kevin - is that the email address for Freddie value disputes? thanks much.
Thank you everyone for your comments. Megan that was interesting. They aren't behind, but he got transferred to another state and so now they will have to miss October payment, because they can't pay rent and this mortgage. They were trying to be proactive knowing that this transfer was happening, but as always it doesn't pay to be a paying customer when it comes to mortgages. I guess I don't blame the mortgages for taking their chances, because some borrowers will not ding their credit and will do anything to not miss a payment. I will file the value dispute anyway and then see what happens. Maybe we will have to wait till November 1 for a more favorable response.
Holly,
Is the seller behind on their payments? If so, how far behind. I have had this happen with Freddie Mac and we had to wait a month before they would lower the value. If the seller is not behind, they will automatically add 20% to the BPO value (totally ridiculous).
fmbh@freddiemac.com