Over the last few months, it has become apparent that Fannie Mae is more interested in foreclosing than approving short sales. The scenario is the same over and over again. The BPO comes in at one price and Fannie Mae adds 20 or 30% and says that is what they will accept. Some have suggested that they are trying to get next year's prices if the current price trends continue. In the meantime, buyers are unwilling to overpay by that much and are backing out of the contracts when they hear the outrageous prices that FM is asking. If you dispute the value, they reject it and then consider their number good for an additional 90 days from the decision on the dispute. Has anyone else been experiencing the same kind of problem with Fannie Mae being the investor??
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HA. Fannie blocked me from commenting on their Facebook page after I made some commets about their policies.
http://www.azcentral.com/news/investigations/
Hi Mike - I'm also a veteran Realtor here in Carefree AZ. Although I haven't run into this problem, I feel your pain. I've just read all the posts. After today, you should also contact Call 12 for Action, as well as Katherine Reagor with the AZ Republic. Both these can be found on the above website.
Call 12 for Action is geared to go after "businesses" which have harmed an individual. You are being harmed by the "business" of FNMA. I often think if the public was actually aware of what's going on, they'd be beyond disgusted
Also, Katherine Reagor wrote on article on October 12th about the investors buying up homes in the Valley. She also wrote one, I believe, on the recent government bulk sales on their REOs. Maybe the two are tied in?
And how is it the government (FNMA) can ignore the appraisers they essentially created by requiring lenders to use Appraisal Management Company third parties?
This makes me sick. You go get 'em . . . and keep us posted. I'm marking this email for all replies so I can see how you fare. Good luck.
This is picking up some Good Steam. They are ripping off unsuspecting buyers by waving the no appraisal inticement before the home buyer. I am also writing E-Mails to our Reps in SD County. It may be more effective to hit their Facebook Page and Twitter as well. That is the reason they are Jacking our Short Sale Values.
From San Diego County
I might have just gotten lucky on a value dispute with Fannie Mae, but they actually reduced their counter from 350,000 down to 310,000. I escalated the file with Fannie Mae and sent them the appraisal that the buyer received from their lender. I had to tell them that this was the highest and best offer and that the buyers lender would not lend more that the appraised value (duh)... They overturned the counter and we are ready to close.... You have to send them comps and get a hold of someone who will fight for you to get the value down. Keep fighting and don't back down!!! I sent an email to about 30 people at Fannie Mae and got someone who was willing to help.
Good luck...
Who was the lender, and could you forward me some of your contacts an FNMA? When SunTrust countered our offer at $245,000, I sent an appraisal and counter-offer of $205,000, comps showing the last sale 1 month ago was $199,900 and comps showing the highest sale in that building was $199,900 in the past 6 months, and the highest in any building of a similar unit was $235,000 and argued the buyer's lender would have to appraise in order to get a loan. The investor (FNMA) wanted $245,000 and they said no to the dispute! I would love to be able to contact the right people. You can reach me directly at [email protected]
Thanks....
Pat said to share the contacts with her... why not share with everyone? ;-)
My experience has been that Fannie accepts some and rejects others with no apparent reasoning behind the decisions. I just got 2 approved at lower price / vmf than another that they are stubbornly holding to a ridiculous price. No rhyme or reason?!
I would love to have the names of the Fannie Mae people, actually just the one who finally helped. The buyer on my listing is a cash buyer so there's no appraisal. FM thinks just because its a cash buyer, they won't know the value of the property. I want to keep fighting, but have run out of people to fight with. Would you send me an email with the helpful FM person.
Jason is the one who got the deal done for me. He has been very diligent in calling and emailing me in a timely manner.
I hope he can help you like he helped me.
Thanks so much, I just sent him all the info. I'll let you know what happens.
You sound like my kind of short sale specialist, where are you? If I have any short sales inquire in your area, I'd like to send them to you.
My opinion is that Fannie and Freddie have now delegated short sale approvals to the servicers as part of the new guidelines that were just rolled out 1 November. BUT the deal has to come in within a certain parameter of loss to the investor. For example: "You can approve the short sales as long as our loss is not more than 50%"
So the ridiculous values are being based on a percentage of loss NOT the value of the property.
You may have seen a counter form the servicer like this;
Body: Please review counter. I HAVE COUNTERED TO THE LOWEST CONTRACT PRICE I CAN ACCEPT FROM THE BUYER IN ORDER TO APPROVE THIS SHORT SALE. Any contract price that is lower is subject to be reviewed by the investor, and/or immediate denial. Any decision by the investor will be considered final. A contribution from the seller has been requested, for - $12100. This amount is 10% (or promissory note for double the amount), of the investor’s expected loss based on this short sale offer. This amount can be accepted, or countered by the seller, based on their participation capability. However, a contribution may be required for short sale approval. With an appropriate contribution, the investor will waive the deficiency balance following closing of the short sale.
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It's pretty evident that the counter is based on an internal investor guideline and not the value of the property. So...the way to handle it is to
Then counter and request the file be submitted to the investor for review. Wait and see if the new counter is accepted before escalating.
You might be onto something there, Bryant. Both of my acceptances came in yesterday after I had the seller offer a $500 cash contribution. On one of them they countered at $550 which, of course, the seller was delighted to accept.
I guess sometimes it's just a matter of learning to play the game under new and ever-changing rules.
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