Fannie BPO's coming in WAY high. Anyone else experienced this?

Question

Has anyone ran into this where Fannie is countering the buyer's offers on short sales waaay above what they will actually appraise at? Slightly above the appraisal value I can under stand due to the low inventory and high demand right now. But the price they want is unrealistic.

We have one right now and we are trying to get them to come down on the purchase price because what they are asking is ridiculously too high.

Robert Adams · Answer

Joshua Dorkin understood...that's why I asked ahead of time.

Take care.

Joshua Dorkin · Answer

Robert - Most forums have a policy against promoting competing sites -- it is like going into McDonalds and pitching Burger King.  As a result of the policies of other forums, we ask that our users respect our wishes to not promote threads on competing sites either.

Robert Adams · Answer

John Mireles I see.

I have been discussing this topic on several forums and everyone that I have ran into that has experience with Fannie Mae is all confirming the same thing.

Joshua Dorkin can I post links to other discussions I am having with other Pros about this topic. They are on other forum websites so I don't want to post them and violate any TOS here, but they are very relevant to this topic.

John Mireles · Answer

Robert Adams - I had used homepath financing, I would have had to come in with 20% down. Instead, I went the FHA route and came in with 3% down. Even with the additional $8,000, it was less money out of my pocket: $21,000 verses $86,000 (plus P&I on the extra $35k).

Robert Adams · Answer

Sorry here is the hyperlink: https://petitions.whitehouse.gov/petition/force-fannie-mae-behave-responsibly-or-shut-them-down/vtY71bhk?utm_source=wh.gov&utm_medium=shorturl&utm_campaign=shorturl

Robert Adams · Answer

John MirelesWayne BrooksSandy Blanton You can sign the petition to get this reviewed and possibly changed here: https://petitions.whitehouse.gov/petition/force-fannie-mae-behave-responsibly-or-shut-them-down/vtY71bhk?utm_source=wh.gov&utm_medium=shorturl&utm_campaign=shorturl

Robert Adams · Answer

Sandy Blanton yes I am referring to a client we currently have listed as a short sale. But we have been running into this more and more lately. I agree with what you say about the press/media saying that it is getting easier and easier. This seems to be true with some banks but NOT Fannie. lol

John Mireles if you would have gone with homepaths financing wouldn't you have been able to keep more money in your pocket buy financing the difference instead of having to pay out of pocket the difference between the purchase price and the appraisal price?

Wayne Brooks I would like to sell my properties and then get a futrue estimated value. lol my property is worth $200k but in six months I think it will be worth $300k so I going to demand the $300k. What do you mean no one wants to pay that???? Well I guess I will sit on my property since I don't have the luxury foreclosing like Fannie. Seriously though, I wish we all had Fannie's position.

Sandy Blanton · Answer

Robert Adams John Mireles JoHn I think Robert is discussing a short sale he's handling for a client.

Robert we are experiencing unreasonable bpo's and counters to our short sales en masse.  This has been going on since last quarter.  Short sales in the press "are getting easier,"  we say the opposite and we handle dozens of them a year.  My short sale manager says he's having a harder time than ever before in getting the deals approved and closed...all due to unrealistic counters/bpo's from the lenders.  Good Luck.

Wayne Brooks · Answer

Same problems here with FNMA short sales and REO's.  The FNMA appraisers tell me one reason is that FNMA wants "future values", 120 days out.  I guess you have project what the comp.s will be in 120 days?  Forget financing a FNMA REO unlees you're using Homepath, where no appraisal is required.