There, I said it! Something I've been wanting to say for the past 60-90 days, and finally have gotten up the nerve to say it publicly through my blog. And trust me, I'm not the only one that feels this way right now.
You see, over the past 60-90 days, ALL of our Fannie Mae short sales have had one thing in common... Every single one of them have received ridiculously-priced counter offers. I'm not talking 5% higher than market value, but in most cases 15-25%.
At first, Phoenix short sale agents such as myself thought that we were getting bad BPO's (Fannie was using their "hidden" BPO values as an excuse when we first started seeing this trend). Problem is, when we were calling to confirm the BPO values with the agents that conducted them, they were all saying the same thing..."I gave them a value that was in line with what you are under contract for". Hmmmm... We all started scratching our heads and wondered, "Would Fannie Mae rather foreclose"? And if so, why would they do that?
Over the past few weeks, Facebook, Twitter, short sale blog sites, etc. have all been abuzz with this latest trend coming from Fannie Mae. Many of us have spent hours sending in value disputes, only to get the same boilerplate response from Fannie Mae..."We're seeing REO net execution of greater than 115% in that area so an offer below value will likely not be accepted". What the hell does this mean? And why am I getting this same response for a neighborhood that is 15 miles away from the last one? Obviously, the negotiators at Fannie Mae have all been given direction to give this response when they deny our pleas to value our listings at market value, rather than this made-up bullshit they are now feeding us.
Folks, please remember something very important here... We (you, me, the American taxpayers) stepped in and took over this screwed up mess of guts in June/2008. Since then, they have cost US over $170 Billion. So, why aren't they working with homeowners? Why would they rather foreclose? It's actually very simple...
You see, when Fannie or Freddie take a loss on a home (whether it be through a short sale OR foreclosure), they are "made whole" by our government (meaning you and me). If they take a $100,000 loss on a short sale, they simply turn around, stick their hand out, and Uncle Sam writes them a check for $100,000. Same goes for a foreclosure. The only difference is, foreclosures often cost an additional $15,000-$30,000, and often sell for less than a short sale, resulting in a lower net to Fannie Mae. But do you think they give a crap? Heck no! As long as they are being reimbursed for the loss, what do they care how much they lose on the deal?
The bottom line...Fannie Mae could care less about homeowners. They only care about one thing, and that is getting their money. They could care less if it comes from the very people that now oversee them (our government, i.e., the taxpayers). This egregious behavior needs to be stopped, as they are costing us billions of dollars by taking the easy route and simply foreclosing on the very people that are paying their salaries.
It's time that we all contact our elected officials, media, and anyone else that will listen. This new trend needs to stop before more people lose their homes, and more neighborhoods go down the toilet. If there's ever been a blog post to share, it's this one. If you care about your neighborhood (and the value of your own home), you will share this information with anyone that will listen. With over 75% of the loans being owned by Fannie and Freddie, this is a really big deal.
Until next time...