My seller didn't qualify for HAFA so we switched to the co-op pre-approved price program
before I put it on the market. I got a call just now from the negotiator who wanted to "warn me"
that she is issuing an approval at $390,000 despite the BPO at $340,000. She said this is
a constant problem with FannieMae and she wasn't told where this $390,000 came form.
Looking through paperwork, I find that my seller owes about $390,000.
Has anyone had this experience?
Usually in the co-op short sale, the investor will set the price prior to it being listed. I had this happen to me and fortunately they came back and told me I had to lower the listed price even after we had an above-listed price offer. It's amazing how they come up with these things. Who is the investor? It sounds like something that U.S. Bank would do and BofA services alot of their loans too.
You seem to have a nice negotiator who will soon leave BofA. FNMA files have had horribly high counters at BofA, and Freddie MAC. You'll find others here complaining of the same issue. I have one where Freddie countered $320K on a $210K offer - seller only owes $312K - and BofA wanted $6K cash from the seller at closing (a tip, I'm guessing for **swell** service..??). I disputed the BPO including a property that sold for $220K w/finished basement, my property unfinished. BofA sent another BPO agent - next counter (for new buyer, last one walked) was for $275K. Exasperating. They clearly use some dart board - how can they go from $320K to $275K in 2 months --- and still be way above market, unless they are playing games?
It looks like your negotiator is confirming the "rumors" of these two federal thieves gouging. It's like they miss the good ol' days of gouging people to buy the homes and are doing it now - I guess in the old days, potential buyers could walk, here the homeowner is stuck. This is in keeping with their "speed up" of short sales rules which they just released - to negotiate less with 2nd's thus forcing more foreclosures - to, uh, speed up short sales "for us".
Sorry I'm a month late but it's happening on most of FNMY backed properties. I believe they want the properties back as HomePath listings. Great if your are in bed with FNMY as their listing agent. Death for the rest of us.
I talked to a Fannie Mae rep several weeks ago as we have 2 of our current SS listings with FM as the investor. Both had bpo values that came in at least 10% above current market value. Fannie Mae rep said FM is currently using their REO valuation method for pricing their short sales. The REO method will use 108% of current market value (% will vary depending on geographic area). I am in the Phoenix Area and this seems to be pretty consistent. They will not budge on bpo/valuation disputes.
My question is... if this is Fannie Mae's stance, why even bother taking the time to list a Fannie Mae short sale? Why put your client, buyer, buyer agent and you or your teams time into working these files when Fannie Mae seems intent on just taking their properties back and selling them as REOs? Very frustrating!
I just bought a general appraisal on my latest dispute. I will let you know if that has any good results.
They may have other BPOs, Desk Appraisals or Drive-by appraisals. Maybe $340k is the 30 day As Is value and they want to start higher to let the market decide the price.
I am new to the program. Please keep me informed.
Dilbeck Real Estate 805-367-9165
I believe FNMA is currently using the Corelogic Desktop REO AVM model to determine this value. In a down market this report was very useful for supporting our position that it was better to accept a short sale now rather than incur another 30k loss pursuing a foreclosure and trying to sell it as an REO. Now that certain markets are improving they seam to believe that house will be worth a whole lot more latter down the road at some point. I even read somewhere that they have set up tere on private buying corp with a bogus address in CA to purchase and hold their own properties from foreclosure auctions.