Now it's Freddie's turn.  without going into details, I have confirmed with management at Wells Fargo that Freddie Mac is countering 15%-20% above the BPO/appraisal value they obtain. The reason they give is that if they feel the property is in a climbing market, then they want the buyer to pay that price.   Or they feel the seller can bring in the difference.

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Here in California, that is not allowed by law. .On the latest declined short sale, the BPO value was $335,000.00  The buyer's appraisal came in at $330,000.00 and was used to dispute Freddie Mac's counter of $407,000.00 which required a net of $373,000.00.  This issue needs to be addressed by NAR  asap. Freddie Mac, as did Fannie Mae, is encouraging foreclosures as a valid buyer obtaining financing will not waive the appraisal contingency and bring in the additional cash.

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I have to agree with Fannie or Freddie telling the Realtor that they, not a short sale attorney, should be negotiating the short sale. Let's face it, an attorney cannot/will not afford the time on the phone, etc. that it takes to complete a short sale effectively.  When I have been on the buyers side of a short sale, every one that has gone bad has been negotiated by an attorney.  I try to find out who's doing the negotiating, since my dismal success rate as a buyer agent, when an attorney office is in the lead.  Also, the amount the attorney charges in fees to the bank, to me, might lead to the decline of the short sale by the bank.  This is not fair to the seller/borrower that I have agree to handle their short sale and I try to keep them out of foreclosure.  I would feel ashamed if it were on me and they went into foreclosure. The few that have, it is because it has  been do to the seller/borrower, mostly, getting all caviler and not giving any of the documents that the bank has asked for or requested. I do employ an hourly, an that helps me.

I have to respectfully disagree with you.  My office negotiates all of of our short sales in house with a very high success rate.  We know that most short sale lenders will approve at least $1,500.00 as Illinois is an attorney closing state. 

Robin  my question would be are you stating on the HUD that the attorney fee is a Closing fee or a negotiation fee?  I am in California and we use escrow companies who gets a closing fee only.  they are not negotiators.  I am a 3rd party negotiator that the bank will not pay so how can they pay an attorney?

Ok everyone responding  But here's the problem.. You are "preaching to the choir".   Are we going to keep blogging to each other about this? Start calling or writing to you congressman or senator.  They are the ones that will put an end to this nonsense. Also  if you are a buyer's agent then, before making an offer, find out if the seller's loan if Freddie or Fannie

so lets do it.  but shouldn't the outcry go to FHFA with copies to our politicians?

I just wanted to mention to all of us that have aged 20 yrs in the past 4 need to ban together and get some paid stress relief from the deep pockets the bank has.  LOL!!

I need California agents to join me in writing to Senator Barbara Boxer and state their concerns and/or experiences on this issue. If you have specific cases, please state what happen and the results.

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Thanks Tony. I will.My email is if you want to connect any further.

Did already Tony.

But I think a "movement" is necessary to change things. Not sure how many real estate agents would come aboard though.

Fannie and Freddie have a new boss. Congressman Watts of NC.  He helped us get to where we are with the lowering of standards for FHA buyers, creating sub prime.  Many trillions were made from the house boom and more from the bust especially if you owned stocks in the banks that got bailed out. 

Moody's rated the sub prime pooled MBS as AAA, convenient that Warren Buffett was the largest owner of Moodys at the time and owned big stakes in the banks when they were bailed out too.

Fannie and Freddie get bailed out by us tax payers too.  They're the "house" they never lose.  Fannie and Freddie also from what I'm told have an out with all the foreclosed properties.  They've got hedge funds that are buying 200-300 foreclosed properties at a clip at higher prices than short sales would provide. 

The hedge funds also learned a neat trick.  They buy them, clean then up, rent them out and then pool the leases together to offer LBS (lease backed securities) at an attractive rate of return.  Although, I don't think they've got man power to manage them...but they've learned from the banks that nobody gets into trouble when everybody makes money.

Fannie and Freddie really don't care about getting short sales completed when they've got more attractive exit strategies.

Just my thoughts.

It is a good thought. That is what I think wells fargo did when they had all these foreclosures. They sold cheap to an investment hedge fund, (in bulk, not for sale by you and me)  which they partly owned. And they are now gong to make tons of profits selling them.



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