Updates on Fannie Mae & Freddie Mac Inflated Value Issues
Just looking for any input on others experiencing the Fannie & Freddie inflated value issues. Any recent updates or solutions?
I have two files right now that that I am experiencing this with, one is a Fannie and one is a Freddie. It is clear they have inflated the value on their end. It's not a BPO issue, its definitely an over inflated counter. In one case they countered more than 50% of what the actual BPO came back at.
I have had my challenges with short sales over the past few years but there was always a reasonable solution or resolution, it's amazing what you learn to accept as reasonable. There doesn't seem to be a reasonable solution with these groups.
Replies to This Discussion
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Permalink Reply by Fred Shocklie on
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I have a Freddie file with Wells as the servicer. Property is really worth around 80k due to repair issues, BPO is 93k and Freddie countered at 129k. We have submitted two contracts since Nov 30 and can't get an answer on what Freddie will accept. Escalated the file to Freddie two months ago and they keep assigning case numbers but the case manager never calls. Finally wrote letter on behalf of my client to send to her Congressman. Sent it last week. Friday, the Congressman's office calls and says, they need a bit more information for Freddie. So I am hopeful we may get an answer soon.
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Permalink Reply by Terri Barrow on
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Take it to the damn media. Its time we stopped sitting back and its time we fought for our customers!
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the media has contacted me before and were very passionately ready to put the info on the front page. he interviewed several other realtors as well. then he was never heard of neither was the article...
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Permalink Reply by ElizabethWeintraub00697006LyonRE on
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I have a property worth about $215K. Fannie Mae wants $260K. I escalated the file and I objected to the valuation through Fannie Mae's website. They sent out a new appraiser who called me and said she was turning in a value of $210 to $215K. Fannie Mae came back with $260K. It's all a joke. None of the solutions are solutions. They are just smoke screens. I finally got the negotiator to agree to submit at $240K but it's like pulling teeth to try to get that price. I figure if I just wait another couple of months, the market might catch up.
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Good that your market is in a position to catch up. Our values are not rising in our markets. Some markets are flat but others are still declining.
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Permalink Reply by Kimberley Kelly on
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I do not take Freddie and Fnmae notes for short sales right now. They have a plan..and it is NOT to short sell their properties! We're wasting our time trying to work the shorts while they just let the homeowners keep the home running, then send it to the sale..over it!
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Permalink Reply by Trina Gonzales on
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Similar frustrating issues ... BofA keeps switching Asset Mgrs to "say" they're within their time lines. Not so at all. We've been trying to get a counter offer to our bpo for a month already.
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Permalink Reply by Donna McClelland on
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Hi Raymond,
I just had one where Fannie set the value at $315K (which we knew was too high) and after approval of that purchase price, the buyer's lender did their appraisal and the value came in at $304K. I submitted the appraisal to the servicer (Wells) and they re-approved the short sale at $304K. I guess they can understand reality.
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I have a Wells serviced short sale owned by Fannie. We submitted. Seller was current but his wife who is also the co-borrower unexpectedly passed away. This is an investment property. It was clear the seller was in eminent danger of becoming delinquent Seller had limited income with the loss of his wives income and a family to support. We initiated the short sale, worked through all the basic initiation steps/task/etc. We were countered approx 100K over value. This was all in Equator. The offer submission task (the one where you enter the numbers from the HUD). Actually was a full HUD and we had to submit info from buyers side of the HUD as well. When they countered they countered the additional funds on a line called "cash contribution from seller". This is a HAFA short sale and they can not require the seller to come in with funds. Ultimately they closed the short sale (not even giving us 30 days for marketing) because we couldn't supply the impossible. I emailed my local government offices and advised of the situation. I e-mailed every supervisor, dept, contact I could get info for. I reached out to the congressman's office. I expressed how this is a HAFA and they are asking us to do what is not allowed. Fannie is owned by the government they are running the prices up, foreclosing, taking possession of the property and having buyer purchase through home path. This way they are making money on the property how many times (through MI, tax breaks, write off, the sale, and new buyer's interest? Sounds like non arm's length to me. We re-initiated after contacting and involving government officials. At this point the seller was 30 days behind. Friday I received the first counter. Only 8K above the offer and they are at least in the ball park with value and buyer is willing to move forward. This is great news but as we all know, it is never done in this business, until it is completely done!
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Permalink Reply by Kevin - Greenville, SC on
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Fannie Mae Short Sales and Working with AMCs: Real Property Valuation Forumhttp://www.realtor.org/educsessMid.nsf/allpages/13MYRPValueForum
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Permalink Reply by Rain Silverhawk on
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Hi, So far since the beginning of the year I have been able to get Fannie Mae to back down on the over pricing on 4 of my files. On each one I came armed with comps, bpo and in 2 cases an appraisal and I turned it in to the Consumer Finance Protection Bureau at
http://www.consumerfinance.gov/complaint/
and
http://www.occ.treas.gov/topics/dispute-resolution/consumer-complai...
and esculated it at http://www.homepathforshortsales.com/
It was alot of extra hoops but I managed to close all 4 at acceptable prices.
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