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.
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.
Go to her website for her local address in your area
This BPO inflation is happening all over the Detroit metro area also.
Enjoy like the rest of us.
Then please write to your Congressman or Senator
The values are inflated and it is against the law. I have been to Senators and Representatives with my concerns. Congressman are bought off by the banks with campaign contributions. They could care less about the situation -- whatever the banks want, their lackeys in Congress give them.
Try this if you want to talk to idiots -- ask the congressional staffer what the loan servicing companies do. We supply all the documents (in most cases more than once) we do all the administrative work, we get the documents up on their system. What takes a loan servicing company or a Freddie Mac or Fannie Mae months to make a decision? No one knows! They delay the process and make poor decisions because they can and there is no consequence for their stupidity. Some political party hack at Fannie Mae waiting for his retirement check doesn't know the local RE market.
We get bad-mouthed by every entity out there because banks want to deal with those unfamiliar with the process.
The information banks require us to supply them is readily available to banks, they can get it for every loan they originate. Banks and the government made a mistake and now they want buyers and sellers to pay the bill, so they can keep their bonuses. This process is one of the greatest management failures of any business.
As an added thought, the Consumer Finance Protection Bureau (CFPB) is another joke. Distressed property can best be handled in the private market. The problems of favoritism and the abuse suffered by homeowners in financial difficulty would disappear.