Has anyone seen more realistic valuations coming back from Fannie Mae for short sales? Does the BPO dispute process get results? I've had some Fannie Mae short sales over the last year that were unsuccessful due to Fannie Mae's unrealistic expectations on price (as much as $25,000 above comparable sales). Any idea what percentage of Fannie Mae short sales actually close? Just wondering if Fannie Mae short sales are even worth pursuing given the time and stress involved for sellers, buyers, and agents.

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send them a request on a FAX that you need to hear within 72 hours. Also you can contact Fannie Mae Reosuce Center at 1-800-732-6643 and let them know .

I always utilize the Value Dispute form , which you can obtain on line at Fnamvaludisputeform.pdf

Just had Fannie reject an FHA appraisal by $25,000 over fair market value.  I am still disputing this file with Fannie.  I originally listed home at $199991 which was FMV and got a full price offer on Nov. 2, 2012.  BOA, the servicer, countered the offer on or about Jan. 3, 2013 at $215000 and buyer accepted that counter. On or about Feb. 15, 2013 I was informed "the investor" now wanted $23500! Reluctantly the buyer accepted the grossly overvalued $235K and we received the written short sale approval. An FHA appraisal was done by the  buyer's lender. The FHA appraisal came in at $210K which was fair and accurate. The HUD was revised and submitted to BOA (Fannie) on April 1, 2013 along with the FHA appraisal.  Per BOA "the investor" rejected the FHA appraisal and we were told to submitted the dispute through Homepath. After several more weeks Fannie again rejected the FHA appraisal and told me to find a buyer for $235K!  I was also told during a phone converstion with a Fannie manager the FHA appraisal is only an opinion and was given the comps Fannie was using from the BPO.  I brought up the fact to the Fannie manager that a BPO is not as reliable as a certified FHA appraisal.  Additionally, without exception the BPO comps were over valued as the BPO agent used superior, larger homes in a superior subdivision than they should have while the FHA appraiser used similar homes and accurate comps.  NOW FANNIE NO LONGER HONORS FHA APPRAISALS.  Can anyone out there  top this?

I can see many things wrong with this transaction, its BOFA, it's going FHA, and ITS BOFA , enough said.

Hi Todd, again you and every Realtor must understand that the Investors (FHLMC, FNMC, etc.) has been given the directive to drive the FMV up to accomplish two (2) results; 1. recovery as much of their debt as possible without concern for the borrower; 2. manipulate the market to artificially support a residential economic recovery... which unfortunately is working.  

Everything else is of no consequence...!!!

I don't see the BPO dispute process working anymore.  There's usually nothing wrong with the BPO.  Two things happen when it gets into Fannie and Freddie's hands.  1. They anticipate what prices will be in the next 12 months and add that much to the BPO.  2.  They do not take into account any maintenance or repairs needed at the property.  The worst part about the value dispute process is that they extend the BPO valuation for another 90 days after they render their verdict which in most cases is a flat, "NO CHANGE".  They are banking on the low inventory to drive up the prices where cash buyers will just pay it.  Over the last few months, they don't even change the value based on an appraisal.  This valuation philosophy is actually a FM policy right now.  They don't mind foreclosing and getting a buyer to go thru the Homepath process where no appraisal is required.  Now, how does that help the consumer/buyer?  They are manipulating the market and working their way to another bubble bursting if nothing is done.  Thank God, they didn't think of this sooner when most inventory was distressed.

I've successfully closed many Fannie Mae Short sales. I've had to dispute value a few times. I have another Fannie Mae approved appraiser go to the properties. Then submit that appraisal to Fannie Mae, so far this has worked, and helped tremendously with negotiations.

Becky,

With respect, been there and done that.  Still values come back no change!  I do close 40-50 shorts a year.  The ones that fall apart are fannie mostly, and some freddies... sorry Fannie isnt fair on values or even close.  They even tell their bpo reps to use only arms length comps and cant use bank owned or short sales no matter proximity to the home.  They would rather tell you to go out 5 miles for a comp arms length than to use the next door neighbors home... its borderline ridiculous.  Sorry, have to agree with Michael.

 

I am sure that a problem with FNMA is their insane use of "FMV" from whoever puts together that "data". The report in our MLS was pointed out to me recently, so I went through a few properties. If you've seen FHA appraisals, they are pretty complete, unlike BPO's that come out of thin air often. A recent appraisal on a property gave a $260K value, the FMV from this other report shows $485K. All I have to do is look at 1 of these to think, "this is the most useless value on the face of the earth", but FNMA goes "great value, let's use it!" I have seen that recently, FNMA has been using appraisals. I hope that is where they are going - someone with a license to protect and real rules instead of a snot-nosed kid from 2 states over to zip by in a car and pluck a number out of the air for a BPO. (I've had listing agents look into the work of some of the BPO "artists" - gee, they don't have any listings of their own, brag about being brought back to do a BPO on a property that they BPO'd a year ago - maybe because their number was insane? They live on bank BPO's and are happy to keep the bank happy by delivering high numbers.)

Then there is the other problem of FNMA admitting to adding 20% to the BPO - happy to foreclose and put on their site to offer buyers the bargain of NOT paying for their own appraisal if they get a FNMA loan --- at 20% above market value.  Your fed bailout helping out America...

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