Well, I just sat in on the Fannie Mae webinar where they explained how they are doing short sales. I was struck by the fact that they insist that 1. we leave all short sales as "active" on the MLS even when our MLS service insists that we use things like"pending ss approval". They said they would consider it fraud if we do not keep these as "active".

2. They explained how they come up with their value and if you break through the garbage that they said, it is exactly what we have all thought was going on! They are truly manipulating the market to raise the values. This is a fact that was just proven by this webinar.

You can get the slides right now from the presentation at www.car.org/media/pd/Fannie_Mae_Short_Sale_REP_Presentation_2013_02...

The audio will be available in about 2 weeks at www.car.org/newsstand/news/fannieshortsalewebinar/

The only good thing that we have going for us right now is that we are now able to go around the sevicers and go directly to Fannie if we have issues by going to the homepath site. 

As a personal note. I am so discusted by these folks at Fannie Mae that think they can do what they are doing to this market. They say they are looking at the BPO's and Appraisals and "when they think they are not right, they are correcting them" it makes me sick! IT looks like what they do is go to the MLS, pull of the highest value in the area, whether it is active, pending or sold, or if it is brand new or just updated or whatever the case may be, and using those values to say that the appraiser is wrong. In what universe is Fannie Mae qualified above an appraiser to decide a market value? This is obvious garbage in order to force our market and I am steaming angry about it....also, in what universe do they get to set the standards for our MLS's? When I brought up the issue for setting values high so they could foreclose and put them onto homepath where no appraisal is needed, it went unanswered....of course!

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Comment by Kevin - Greenville, SC on February 25, 2013 at 2:43pm

Susan,

Bank of America retracted/clarified that.

https://agentresources.bankofamerica.com/ss_news_13FEB11

Comment by Joe Beauchamp on February 25, 2013 at 2:42pm

Not much surprising here. Previously, someone noted that FNMA is taking seriously that we don't like them trumping up the market value 20%. Well, I seriously took that to mean that they are fully aware and na-na-na-na-na.

I can see a point to wanting the MLS as active - you can look at it as wanting to see if better offers come in but you can also look at it as an admission that their short sales take so long that there is little point in assuming that you'll still have a buyer by the time the servicer and investor has done their SS dances. Also not a surprise because FHA does the same thing - carried farther - even though you have a listing agreement with the seller, you need to change the price on the listing agreement when you get the ATP months later. What sense does that make?

Besides, as HSBC has proven, these banks are too big to be held accountable to laws like us mortals... How's that drug running and terrorist laundry going?

Comment by Judi Fiolle on February 25, 2013 at 2:42pm

Here is another problem. I have changed the listing that I have with Fannie to "active s approval" but because it shows as just "active" on the other sites, I am getting inquiries on the property again. I don't mind except that now what do I do if I get other offers? I can not legally allow the seller enter into another contract with a different buyer while they are in contract with the present buyer. Since the bank will not accept offers without them being fulled executed, I am not sure what to do. 

I must say though, that I have now changed the price to what Fannie gave us as a value and it seems to have stopped the inquiries. Of course, since that value is way out of the realm of reality! Maybe that is the answer.

Comment by Judi Fiolle on February 25, 2013 at 2:37pm

Exactly Mike! They have no business getting involved in our MLS or any of our Real Estate rules! That is the point. I have been asked a couple of times now about the site for the slides so I am posting it again here. I had a problem getting it on the main post.

http://www.car.org/media/pdf/Fannie_Mae_Short_Sale_REP_Presentation...

Comment by Susan Goulding on February 25, 2013 at 2:31pm

Bank Of America just sent out the same directive.  We had such a problem with "pending short sales' fooling buyers into thinking we had 500 homes available.  Once our MLS issued a Pending Short Sale Approval category our Actives went from 538 homes to 38 homes overnight.

The problem we had with ACTIVE short sale contingent is that in ALL THE 3rd Party applications (Trulia, Zillow, Realtor.com, etc) the house shows as ACTIVE.  They by deceiving the buyers.

If only the people who made these "rules" worked in Real Estate.

The Short Sale CONTINGENCY is just that, a contingency, albiet a VERY long on.  Do you mark a listing pending once seller has accepted offer and buyer is in contingency period, or course you do.  Do you mark the property pending when there is a contingency for seller to find another house, of course you do.  Same animal just different striped.  The buyer and the seller have agreed to terms, now they are BOTH just waiting for ALL contingencies to be rectified.

Comment by Mike Linkenauger on February 25, 2013 at 1:50pm

My problem with ALL of this is that our government has no right to dictate our local MLS policy / Realtor Code of Ethics / State Law.  Doesn't matter if we "should" do something, if our MLS allows it, or NOT.  They have no right to tell us that what our board tells us is ILLEGAL. 

Comment by Judi Fiolle on February 25, 2013 at 1:46pm

Garrett, if you scroll down to Kevin's post, he posted the portals for this info. check it out. 

I am particularly fascinated with the slide that states that they will provide seller with $3000 in relocation funds but when you go to the charts, it says "up to $3000". This is where the devil is in the details...AAhhh, the government always is a pleasure to work with isn't it....

Comment by Garett Chadney, SFR on February 25, 2013 at 1:29pm

Your link for the slides was removed and is no longer active.  Can you email it to me at: garett@TheBrokerNetworkRealty.com or send me a link from Dropbox or Evernote?

Thanks!

Comment by Wendy McClure on February 25, 2013 at 1:16pm

Our MLS lets us show Active - Contingent on third party approval.  Showing other agents we have an offer but the general public does not understand.  Sellers have signed YES - but we all know anything can happen where the buyer walks, inspection goes wrong, or whatever.  It can not be changed to pending until ALL parties agree and after inspection if that is another contingency.  It should stay active.

There is a lawsuit I read about a few months ago where a CDPE agent had their seller sign 2 purchase agreements, sent both to their short sale mortgage company and the bank approved them both - yes for the same house.  So they sold their home twice to 2 different buyers.  Banks - or their employees answering the phones have not been trained very feel as to how to respond to some of our questions.  I get different answers for the same questions continually.

I think that banks love foreclosures - they will receive either insurance money and Obama Bail out money for the difference in sheriff sale prices to the original debt.  They make a good chunk of money there!!!  Thats why the appraise them high so they can collect more at the end of redemption.   I know we have all witnesses banks putting money into properties and selling them for less the market with their REO agent.  Now a days it seems they are listing for higher.  My opinion only but have seen on You Tube about the 3 men from the Department of Treasury who started their own bank and making so much money on purchasing bad debts.

We have to keep our government out of Real Estate.

Comment by Clifford E WIlson on February 25, 2013 at 1:10pm

My Question has always been: it is not a pending offer until the lender accepts the offer, correct? and you are ready to go to closing. ( I am amused they want the closing rather fast, after you've waited 8-12 weeks to get acceptance)

All MLS boards could help, but I always put a note in realtor only remarks that offer is in place and working thru the process, can help you both ways.

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