AN OPEN LETTER TO FANNIE MAE, CONGRESS AND PRESIDENT OBAMA:
Please do not give any more money to Fannie Mae, if only for one reason. They are driving owners into foreclosure with their ludicrous idea of market value. I would rather see you give it directly to owners who are being buried by this uncaring and unapproachable behemoth.
Please hear my story! My example is just one of many desperate cries coming from the people in our nation, but falling on deaf ears.
My seller was completely approved in September 2009 for short sales on two houses with CITI. We were ready to close after working for months to put the deal together.
Just as we were about to close, a title search revealed an illegal encumbrance placed by Countrywide/BOA.
We worked from September to February to have the encumbrance removed.
We were given the clear to close from CITI. As we were about to close on Feb. 16, 2010, we were told that the buyer would now have to bring 33% more money to the table or no deal per the investor (FANNIE MAE), and the seller would be forced to accept a deed-in-lieu of foreclosure or a full out foreclosure.
The property values in this town and on this street did not go up at all, much less 33%. The houses in question are about to be condemned...there are crack houses on this street. I repeat, these houses did not go up in value at all.
As a matter of fact, once the houses are destroyed, the properties will be worth 1/3 of what the buyer is offering.
This type of illogical approach by Fannie Mae is why I say NOT A PENNY MORE! They are losing money hand over fist for their ridiculous guidelines.
As far as I can tell, there is no way to fight Fannie Mae. No response is given when one calls - they say they don't have anything to do with it. CITI blames it all on Fannie Mae, and tells us they have asked for an exception and it was denied.
I am the eyes and ears on the local level for an entity like Fannie Mae, but they won't listen to me. They are just trying to cover their losses, at the expense of my client and many others like her.
She is heading for foreclosure, thanks to Fannie Mae's ridiculous opinion of market value.
I beg you not to give this machine any more money that they will use to financially bulldoze Americans.
And if there is any way that you can help my client and the others like her, I would like to know asap.
Dawn Maloney,
REALTOR®, CDPE, CDRS Elite
Member of The Institute for Luxury Home Marketing RE/MAX Haven Realty
"Distinguished by Service" Helping home buyers and sellers in Summit, Portage, Stark, Medina, Wayne, Lake, Geauga and Cuyahoga Counties since 2003. Dawn Maloney, REALTOR® | RE/MAX HAVEN| (330) 990-4236 |
Disclaimer: Information contained in this post is deemed reliable on the date of publication, but it is not guaranteed and it is subject to change without notice.
8 Comments
on No more money for Fannie Mae, I say!
FEB
27
2010
Dawn - I am with you!
Fannie and Freddie don't need more of our money - we need our own money back from them!
I could be getting paranoid, but I see them both as evil giants, gobbling up human lives - in cooperation with the banks and our own U.S. Congress, of course.
I sure don't know the answer. They aren't held accountable for anything, they have no conscience and no standard of ethics or truth.
Government needs to get out of real estate - along with about a thousand other businesses.
OH... I'd better not get on my soap box. I get so mad thinking about all this that I could go on for days.
Dawn, that is just pathetic! NOTHING has gone up 33% in that length of time! In fact, didn't they get the memo that most of the country is still sliding?
Fannie Mae is the problem. But Citi probably will make more from Fannie guarantees in foreclosure than the short sale. I am waiting for an answer on one and the lender only needed to agree to the price. Since we know that they will not get that much at foreclosure, the only other explanation is they get more somewhere else-off market. In essence, we are being used to determine market price so the banks can get Fannie to pay for the difference.
Some friends of mine in DC have been tellen me that Fannie Mae and major big Banks are wantten to have total control over the Real Estate industry. That they don't want just to lend, but also want buyer to have to come to their own in house Real Estate selles folks.
Dawn - I so agree with you. There is a huge information gap between what could happen to turn the market around and what is happening - and much of it has to do with Fannie Mae. Excellent letter, let's start a petition!
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
;)
;)
;)
Dawn - I am with you!
Fannie and Freddie don't need more of our money - we need our own money back from them!
I could be getting paranoid, but I see them both as evil giants, gobbling up human lives - in cooperation with the banks and our own U.S. Congress, of course.
I sure don't know the answer. They aren't held accountable for anything, they have no conscience and no standard of ethics or truth.
Government needs to get out of real estate - along with about a thousand other businesses.
OH... I'd better not get on my soap box. I get so mad thinking about all this that I could go on for days.