Fannie Mae short sales: Making things harder than they should

So the good news is we just closed a short sale listing from Queen Creek at the beginning of the week. More good news is this short sale was not a cat because if it only had nine lives, it would be dead.

We took the listing in May of 2010 and by the time we got an offer that would stick it was mid-July. The BPO came back at $131,000, right about where we thought it should be. Even thought he buyer had only waited for less than five weeks, they had found another house so back to the market the house went. The problem we were facing with this area of Queen Creek is it was probably the most rapidly declining area of the East Valley.

We got another offer in October, and because this is a Fannie Mae short sale the original BPO should have been still valid and with an offer of $120,000 we knew we would have to work some magic to make this happen or challenge the BPO. But for some reason, they ordered a new BPO, and in this rapidly declining market the number came in at $152k. 152k? Someone used some bad comparables. I usually meet the BPO agent at the property as I did this time, but this BPO agent would not allow me to even talk to him, so there was nothing we could do to make sure he was looking at the same info I was.

The buyer was not willing to work with us as we fought it, so they walked too and back to the market we went.

The first week of January I get an offer for $117k, which was about market value, and they were willing to wait while we challenged Fannie’s BPO.

Of course Fannie would not make it easy and just look at the comparables we were providing and see the obvious. They refused to look at value. We escalated in Bank of America to try to get them to help us fight Fannie Mae. Again we were told no Fannie would not take a look at value.

After we were told at least 5-6 times by a variety of people that Fannie was refusing to even look at value, we eventually found someone in the escalations department who realized we were right. How could values go up 20% in four months? If the comparables sold in the last three months were 95k-130k, with only one above 117k, how could ours be worth 152k?

But again even though she was working on making the case to Fannie Mae, they would not look at it. Finally as a last ditch effort I started calling every manager and executive at Fannie I could get a number for, and they all refused to talk to me saying I needed to go through the servicer. Then I blasted them all with emails outlining my case. I was so aggressive in my contacting that Fannie Mae called my escalations contact at Bank of American and yelled at her telling her I had to stop contacting them. That meant I was doing my job.

Eventually all my harassing of Fannie Mae paid off and they agreed to do a new BPO, which came back at $122k, right where we thought it should. So we wasted hundreds of man hours and two months of time, but we were making progress. Of course there were issues with cash contributions and promissory notes that I will discuss tomorrow, but we would eventually get an approval letter and they gave us only 5 days to close. Of course they had to make that difficult to and it took two days on the phone to get them to eventually extend it two days AFTER the letter expired.

Fannie Mae needs to find a better way to work with agents and/or servicers. Eventually they would agree with everything I say, but they took months and hours of time to get there. If they had been able to use their brain, it could have saved a lot of time and money.

Fannie Mae reneges on their counter offer

Short Sales" href="" target="_blank">Phoenix may be one of the ten least stressful places to live in the United States, but that may not be the case if you are a real estate agent.

We had some buyers who were interested in a Fannie Mae house. They put in an offer and the bank countered back at $170k and our buyers accepted. Then before the bank sent over the addendums they changed their mind. Now they say they want $177k instead of the $170k. When my clients asked me what I thought I told them the truth, I thought it was complete BS!

Question real estate stats and Fannie Mae is costing us money

National real estate numbers almost mean nothing to your local real estate market, and even local real estate may have more than one market. Dont read to much into numbers they dont always tell the whole story. And what is up with Fannie Mae not allowing more time to work on short sales? This does not cost them money, it cost US money. Either allow time for the deal to be worked on or work on it a lot quicker.

Top 10 real estate posts of the day for 3/9/2010

Here is today’s list of top real estate posts of the day.

1) How To Shop For Mortgages And Keep Your Credit Scores High – Just a wealth of information in here I did not realize. A must read for agents and home shoppers.

2) 7 Expectations of Real Estate Investors – Beware of Potential – Thinking of getting involved in real estate investing or working with a new investor who is looking for some tips? Here are some tips that you need to be aware of.

3) Socialist need not read –> Like Big Oil –> Big Expired Program; windfall profits – Looking for a new marketing program, but expired listings are not your thing? Check out these numbers.

4) Homes for Sale in Denver Face Scams from Craigslist…Still. – I had this happen on one of my listings a few months ago. Beware of this scam. Seems to have hit Tallahassee too.

5) Fannie Mae & Freddie Mac Needs a Good Flipping – NAR has their ideas for reforming Fannie and Freddie. What I don’t understand is how an organization I usually agree with in their political endorsements can be wrong on so many issues like supporting HAFA and even further federalizing Fannie and Freddie.

6) Taking a Short Sale Listing: ‘To Be or Not to Be?’ – I couldn’t agree with you more Melissa. Before I even take a short sale listing I make the seller gather all the required documentation, that way I know there will not be a problem and I know they are willing to do what it takes.

7) Squatter Claiming Adverse Possession in Puyallup – Ohhh if only it were that easy, I would have a new house next week.

8) Real Entrepreneurship – GREAT read. Real estate agents are true entrepreneurs.

9) Twitter 101 – Some basic Twitter tips for those who may not be getting what they hoped out of the social networking platform.

10) Keep those Garlic Fries to yourself – Those of us who do not play the Mafia Wars and Cafe World usually don’t want to see those continuous updates from others playing the games, although other people prefer to play games as CSGO with the use of sites that show you this is how you become grandmaster in OW. Here is a good tip on getting rid of those updates.

Top 10 real estate posts of the day for 3/2/2010

Here is today’s list of top real estate posts of the day.

1) Who is moving up? – You can make a strong argument for how effective the first-time home buyers tax credit has been in helping the housing economy rebound, but the move-up credit has not had nearly the same impact.

2) Why the Rush for Investors to Buy Land? Genius or Madness? – Some investors are buying up land in Arizona and Nevada, is this a wise move, or foolish. I have seen the land prices here in Arizona, they are so inexpensive right now I think this move is very wise. Eventually this market is going to turn around. Somewhere like Arizona will still be a desirable place to move to and they will need to start building somewhere.

3) The seller didn’t submit my offer to the bank on a short sale… – One of my favorite subjects or should I say one of my pet-peeves when it comes to short sales. Who owns the house. It is not the bank, they are not a party to the contract.

4) Selling raw land? Not so fast, says NAR. – Wait isn’t that what we do? We sell land which may or may not have an improvement on it.

5) Jumbo Loans: A General GuideJumbo loans, yes they are still out there. They are just a little harder to qualify for.

6) The Importance of A Final Walk Through When You Are Buying – Final walkthrough is everything! Buyers there is no need to take the risk and agents there is to much of a liability.

7) Fannie Mae Seeks Another Bail-Out – A little piece of advice for Fannie, if you sped up your approval of short sales at a reasonable price you could liquidate some of those bad loans quicker which you could then turn around and reinvest into good assets quicker. Just a thought.

8) Have You Seen Your House Listing Lately? – Ok Matt is going to far now, he actually wants agents to put in time and effort to make the seller’s house look good to the public? But honestly… if you are a seller why would you accept this?

9) Focusing on the Median Price Can Be Misleading – Good argument that had not thought about.

10) Mortgage Pricing Gets Unpredictable. It’s Time To Lock Your Mortgage Rate – It is not often you hear someone like Dan Green come right out and say lock now, so listen up.

Top 10 real estate posts of the day for 1/26/2010

1) Typical Counter Offer to Buyer’s Short Sale Offer – I require the buyer to put down a $1,000 deposing for 90 days on ALL my short sales now.

2) We Pre-Qualify Our Buyers, Let’s Pre-Qualify Our Short Sales – Could not agree more. If the seller is not totally committed to the short sale process it is not worth the time, because as we all know short sales are not a short time.

3) Foreclosure Vs. Short Sale – This makes me wonder, are short sale rates different indifferent parts of the country? Do we get a higher percent of short sales approved in the Tempe/Phoenix than they would in St. Paul because almost every house here is in a short sale situation? The number is still much lower than it should be, but it sounds like it is higher than here.

4) Standardized Short Sale Process Will Benefit All Parties – WOW, another one that should know better promoting the HAFA program. I wish they accepted comments on this post. Want my take? Seller BEWARE!!!. Here is a video I did on why the HAFA short sale program is unlikely to work. And a second one I did yesterday on why the short sale program could be dangerous and this is just part one of at least 3.

5) This Should be Fun – Raising the Bar – Have you caught the #RTB fever yet?

6) Introducing 1000watt Spotlight: A real estate e-newsletter for curious (and busy) minds – Want to stay up on the latest in technology for real estate agents? I suggest you check the top 10 every day and subscribe to this newsletter.

7) It’s Called Negotiating, Not Eating Crow – Something everyone involved in the real estate transaction should read.

8) Crap, What To Post! How About… “Building A Web Based Real Estate Investor Lead Generation System – Week #1?” – This post was meant to introduce you to his new series on capturing investment leads. What I like most about it is his advice on coming up with a weekly topic to cover with some good suggestions.

9) Barney Frank Calls For an End to Fannie Mae & Freddie Mac – Do we really want Barney Frank of all people, who was yelling at banks to loosen their lending standards, to come up with a new system of housing finance?

10) Hey Banks! Wake Up! Loan Mods Aren’t Working… – Anyone who is saying loan modifications are working is either smoking something they should not be smoking or has their head somewhere the sun doesn’t shine.

Top real estate posts of the day for 11/6/2009

1) What do you think about social media? – When I first got involved a little over a year ago I saw social media as the way to take my business to the next level. Now I agree with Matt here, although I think it is still a great tool and one that will and is helping, I now no longer see it as the answer, but one of a few tools that helps me reach my goals.

2) 8 items homeowners need to get a loan approval in no time flat – Be ready when you go to get prequalified for a loan. Save yourself time and headaches.

3) Fannie Mae announces deed for lease program – Fannie Mae is going to be offering a program for home owners to give a deed in lieu of foreclosure, then lease the home back. Not sure I think this is the greatest idea of all time.

4) Gary Vaynerchuk live at Tom Ferry’s real estate training event – Gary is da man, if you don’t want to be motivated and learn to crush it, then move on.

5) Investors, tax credit and 90 day seasoning – Ardell is always informative and this is an issue that has a lot of confusion around it.

6) Lead response times – This one struck home, very interesting information.  How long does it take you to get back to a lead?

7) Get real with unrealistic sellers overpriced listings gibe buyers bargaining chip – Rhonda always tells it like it is. Great points you may not consider when taking a listing you know is overpriced.

8 ) 15 features of Google Wave | Step by step – I know a lot of us have been complaining about Wave on Twitter.. .so here is some good info to use.

9) There’s going to be a whole lot of rubber-necking going on… – Redfin continues to kill it with what they are doing online.

10) Here are a few of my favorite links on the tax credit extension
Jay Thompson on the extension
Steve Lines on the extension
Lenore Wilkas on the extension
Dean Ouellette on the extension
Greg Swann on the extension
Ted Mackel on the extension
AArdell DellaLoggia on the extension