We know a lot of negotiators in different servicing companies. The servicer is the company that accepts and processes the mortgage payments for the note owners/investors. You could be sending your mortgage payments to Chase but Wells Fargo could own your note. Fannie Mae and Freddie mac own a lot of the notes. We find out who owns the note on each of our short sales before we start negotiating because that dictates how we are going to negotiate and what the likely expectations will be. 

As we do more and more short sales over these years we have come to know some of the key players in some of the lender servicing companies. Nestor is the best at nurturing these relationships and thus we at times get to be privy to information not normally available.

It has come to our attention by more than one servicer that Freddie mac is now backlogged. In fact, so much so, that we are being told to NOT expect any more of our 10 day turn arounds that we have been getting from Freddie mac for short sale approvals.

We have been warned that Freddie mac is totally backlogged and swamped with the amount of files they have. One of our short sale files has been at Freddie for over 4 weeks now without the acceptance of the short sale being returned to our negotiator at the servicer.

So let me get this straight- the Federal Government has hired 78,000 new employees to go to work on the government payroll and none of these can be sent to Freddie mac to help out?

Is there something happening that we don't know about? Since it is obvious that no one in DC, Freddie, Fannie, Congress and up really gives a hoot about the housing market as we well know they do nothing but hinder our ability to sell the inventory and cut us off at the pass- perhaps we need to dig deeper.

What is the benefit to Freddie to not process these short sales? What happened between last month and this month wherein Freddie can no longer process short sale approvals in a timely manner? Since the government is on a spending spree why can't they hire some processors for Freddie?

We had our first acceptance to ever come back from Freddie requiring the homeowner to execute a promissory note for a part of the deficiency on the first mortgage! We work on a lot of Freddie notes and they have not ever even asked our investors to execute promissory notes on firsts much less a homeowner.

Could it possibly be that they need to create another emergency so that their second stimulus bill can get passed with another thousand pages that no one reads? Are they stalling the inventory? Are they stalling short sales?

What is up with Freddie?????

Is Freddie Up To Something More Than Just Being Swamped? by Katerina Gasset is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License.