Yep, no typos in the title of this blog post.  FHLMC (Freddie Mac) is actually charging my Phoenix short sale client a $1.00 "processing fee" for his HAFA short sale.  Trust me, I had to read the email several times, and even asked the negotiator at Lender Processing Services (handling the BofA HAFA short sale) if there was a typo in his email.  I asked him to please explain how they came up with this ridiculous request.

According to the negotiator, Freddie Mac is now charging homeowners a fee equal to 31% of their gross monthly income for their HAFA short sales.  So, if you earn $4,000/month, Freddie will now charge you $1,240.00 as a condition to approving your HAFA short sale.  In our case, my client has been unemployed for two years, and has $0.00/month in income.  When I reminded our negotiator that 31% of Zero equals Zero, he told me that Freddie Mac requires a minimum payment of $1.00.  Are you fricking kidding me?

But wait, it gets better.  I assumed that this $1.00 fee would be handled through the close of escrow.  Nope!  The seller must send a check for $1.00, written out to BofA, to the same address he was sending his mortgage payments to.  Once the $1.00 check is processed, we will be issued an approval letter, and can close 30 days later.  Folks, I couldn't make this stuff up!

So let me get this straight...At last count, Fannie & Freddie have cost the American taxpayers over $170 Billion thus far, according to most estimates I've read.  In October/2012, the 10 top executives at Fannie & Freddie split $12.79 Million in bonuses.  They stand in front of our elected officials and try to convince them that they are doing their best to help homeowners.

And now, to add insult to injury, they are forcing homeowners that are considering a HAFA Phoenix short sale to pay them 31% of their gross monthly income for trying to do the right thing.  It's actions like this that make my blood boil.  Forcing a distressed homeowner to write them a check for $1.00 to help offset the costs of conducting a HAFA short sale.  What will they think of next?

If this story infuriates you as much as it does me, share it and send it to your elected officials.  Homeowners are sick and tired of bailing these idiots out, and getting slapped in the face when trying to mitigate their losses.  This crap needs to stop!