Fannie Mae Is Still Up to Its Old Tricks and Escalation Was Worthless

By
Real Estate Agent with RE/MAX Gold DRE #00697006

I know agents who were relieved when Fannie Mae had set up an escalation process for value disputes. I know, as a Sacramento short sale agent myself, I was pretty pleased to see a website established and a process put in place to address this monstrosity that seems to be taking over short sales all across the country. One of the biggest problems we have with Fannie Mae short sales is the fact that sometimes Fannie Mae doesn't want to do them. But Fannie Mae can't come right out and reject a short sale for no reason. So, it simply sets the market value too high for anybody to buy it.

When the real estate community rose up in arms against this practice and complained about it, Fannie Mae set up a website to escalate pricing issues. However, it is not a solution. It is a joke. The new BPO matched my value but Fannie Mae ignored it. I know the value because the BPO agent told me.

Read more in my personal blog today that exposes more problems at Fannie Mae. Read about A Sneaky Way for Fannie Mae to Reject Short Sales.

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Weintraub and Wallace Realtors

 

 

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Elizabeth Weintraub is co-partner of Weintraub & Wallace Team of Top Producing Realtors, an author, home buying expert at The Balance, a Land Park resident, and a veteran real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown, Carmichael and East Sacramento, as well as tract homes in Elk Grove, Natomas, Roseville and Lincoln. Call Elizabeth Weintraub at 916.233.6759. Put our combined 80 years of real estate experience to work for you. Broker-Associate at RE/MAX Gold. DRE License # 00697006.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of RE/MAX Gold. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice; it could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.

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Topic:
Real Estate Best Practices
Groups:
Northern California Real Estate Professionals
California Short Sales, REO's, and Foreclosures
Short Sale Specialists & Pre-Foreclosure Education
Short Sales Specialists
Short Sale REALTORS®
Tags:
fannie mae short sales
fannie mae market value
fannie mae appraisals
fannie mae pricing issues
fannie mae escalation website

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Rainmaker
94,433
Roger Stensland
Keller Williams Realty Puget Sound - Maple Valley, WA
Let's Move!

Whenever the feds say, "We're from the government and we are here to help." that should always be the first hint that it is time to run for your lives.  Even though the feds mean well, they nearly always put people in charge who have absolutely no experience or business being in charge of whatever they are put in charge of.  Sometimes, it is like letting the fox into the hen house and saying, "Protect the hens."  It just does not make sense.  People from the industry that is being helped and who really have our country's best interest at heart should be the ones put in place to help cure the situation.  You don't hire a podiatrist to perform delicate brain surgery even though both are doctors.

Mar 22, 2013 01:09 AM #1
Rainer
408,883
Dan Hopper
Keller Williams Realty Downtown LLC - Denver, CO
Denver Realtor / Author / Advocate/Short Sale

Elizabeth, FNMA and FreddieMac really do not have any intentions of making this process work to benefit the taxpayer that bailed them out!!  Let's be honest, here!!  Until these 2 organizations are PULLED from the public sector and forced to go private, there is NO incentive to work short pay-offs in a timely manner to benefit ALL. What's in it for them to do so??

You are so correct about this BPO and evaluation process fanniemae plays games with!!  ALL TALK, and absolutely NO timely solutions.  If they were truly concerned about borrowers in distress.... withdraw those homes from foreclosure that are WORKING a short pay-off, and MAKE IT HAPPEN!!  They are not!

Mar 22, 2013 01:25 AM #2
Ambassador
1,990,357
Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

After all this years. .we are still trying to fix this process to be more efficient.. .sad

Mar 22, 2013 02:50 AM #3
Rainmaker
498,333
Jim Patton
Aspire Home Real Estate 209-404-0816 - Modesto, CA
Realtor - Stanislaus ,Merced, San Joaquin Counties

Elizabeth - this is exactly what I was going to write about today.  I am working on a FannieMae short sale right now that they claim is worth about 50% more than it actually is.  And like you said the escalation process was a HUGE JOKE, but not a funny one. 

Mar 22, 2013 07:17 AM #4
Rainmaker
2,947,345
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Elizabeth they do march to a different drummer.  That's what happens when you get someone associated with a government run agency. 

Mar 22, 2013 08:23 PM #5
Rainmaker
3,268,931
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Efficiency in any level of government regardless of the party appears to me an impossibility.

Mar 22, 2013 10:40 PM #6
Ambassador
3,093,329
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

I worked with REDC on a Short Sale that failed.  When we were able to cut REDC out of the middle of it, all went smoothly.  Went from Bank of America Cooperative to Traditional Short Sale directly with BOA.

Mar 23, 2013 07:27 AM #7
Rainmaker
2,189,919
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

In the end, guys, it's our tax dollars that are keeping Fannie Mae afloat, and Fannie Mae should be made to pay attention to the public outcry that they are against short sales for owners in distress. Don't Mickey Mouse it and hide behind smoke screens. Don't say you will escalate unfair pricing solutions, Fannie Mae, and then ignore the results.

Mar 24, 2013 01:21 AM #8
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Rainmaker
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Elizabeth Weintraub Sacramento Realtor Top 1%

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