Fannie Mae is KILLING me!!! Seems that in light of their overspending being uncovered, they're attempting to collect the "lost" money, but ruining short sales currently in progress. I have THREE files that have all been declined this week due to requested concessions - property taxes, hoas, buyer's closing costs, etc. . .all were appealed for Fannie. . .one only needed property taxes. . .apparently the buyers are now supposed to pay taxes on properties that they didn't own when the taxes were incurred. I was told that "the fees are not usual and customary". . WTF? Who determines that? Thirteen years in real estate, 500 transactions, over 75 short sales and NEVER have I seen a buyer pay the property taxes for prior owner. Ridiculous!!
I know somewhere on this site is a link to fannie mae's guidelines. Take the time to find them and read what the "actual" guidelines say about this issue. I have had property taxes and buyer's closing costs paid recently (but only if they where owner occ, NOT INVESTOR). I have done several condo's/puds, I tell each of my seller's you better keep those current because no lender will pay them in short sale.
How about the Fannie Mae valuations? We have three short sales that are at least 1/3 overvalued according to their counter. Being a Licensed Broker and State Certified Appraiser this has me just flat out perplexed. Fannie Mae sends out Certified Appraisers not BPO agents. What could the appraiser's `scope of work' possibly include? Or perhaps Fannie Mae has some equation which adds on to the `real market value' by 1/3. Frustrating to say the least. Now we have to see if the loan was Fannie Mae backed to prepare our clients/sellers what to expect? After 5 years and a couple of hundred `short sales', I should know to expect the `unexpected'. So difficult not to have your reputation/integrity compromised by these lenders and Fannie Mae. And to think it's our money that bailed them out.....
What has worked very well for me in the last 18 months. Is to prepare my sellers and the buyer's if I am the agent. To expect the lender to come valuation come in high. I tell them right up front you need to put aside money for independent appraiser. Who will work outside of your loan (if they are getting a loan) to come up with valuation/appraisal.
In each case (6) so far, it has stopped any lender. They have agreed to what ever the independent appraiser comes in as value. One case the value came in $2000 higher then asking price. The lender's bpo came $35,000 higher. Whatever the independent appraisal ends up being is accepted as the sales price. Works prefect each time.
Realtor Lic. 01162965
I just did a value dispute on a Fannie Mae short sale with Chase. Initial value came over $16K over any comp sold in last 3 months. When I pushed back with Chase it took 20 days for the counter to come back from Fannie another additional $10K higher than initial counter.
Once I went through Fannie Mae's value dispute process outside of the servicer I was able to get it in line with the actual comparables although personally I think it was still about $10K higher. I took Chase another couple of weeks after Fannie Mae made thier final value determination to get the short sale back on track due to their new improved process that makes no logical sense to me. They take the file away from the original negotiator and send it to another section which appears to start the process over. I escalated and escalated until I was able to get back the original negotiator to submit the file again to Fannie Mae so they could give the servicer the same information that Fannie Mae had given me.
It took them a couple of days once the offer was submitted to get Fannie Mae official approval and another week to issue an actual short sale approval letter. They did not approve all the closing costs - no survey (we expected), no HOA assessment letter and some other closings costs suchs as wire fee, closing protection letter and required state fee - around $800 which the seller will have to pay out of their relocation money.
Make sure you push whomever the servicer is once you get the final value determination to continue processing the short sale in their system.
Here is the link:
We think we got it worked out. It's always good to know people who know people!
Right with you Kristina. Being an appraiser myself, I know that the appraisals are not coming in this much above market value. The appraiser would be pushing the limits or USPAP Law even if the scope of work that FNMA gave them was to exclude certain types of sale. I have talked with the appraisers and they give us this `lame' answer which includes their instructions from FNMA to not use REOs or Short Sales as comparables. Even the exclusion of these comparables would not lead to values as high as we are seeing as counters from FNMA. I have gone thru HomePath value disputes with our own independent appraiser's reports showing `fair market value' only to have FNMA stick by the value. The crazy thing is that much of the time the servicer is sitting there telling us to raise our offer even if it does not meet FNMA's counter. So much wasted energy!
I've recently run into this with Freddie, but persistence finally won - not easy. You'll find multiple discussions in these forums about FNMA bumping them 20% above BPO. Why? The servicer is paid monthly to "maintain" the file. Any sale means less money from then on. Foreclosure means extra fees for the servicer and the servicer gets the property back as an REO. That's why. FNMA why? They put them on their homepath site after foreclosure at the inflated price and offer a special deal to buyers - a buyer can get a FNMA loan at that price and not have to bother with paying for an appraisal (which would show the 20% inflation). That's why. Makes ya proud to be a taxpayer, eh?