Fannie Mae rejected an offer more than 92% of thier estimated value?

Foreclosures, Short Sales, Tax Foreclosures
1

according to the negotiator, the lender approved the short sale but Fannie Mae had the final decision. the scenario went as follows:

offer: $134k
fannie mae: $160k
counter offer: $141
fannie mae:$155k
counter offer $144 (was rejected verbally by the negotiator. after discussion ended up at offer $148k which would “obtain his written approval” to help get it accepted)

today i found out the offer was rejected. to which i was very surprised considering everywhere i’ve read says fannie mae will accept 90-92% of their valuation. in this case that would have been $144k. the negotiator agreed to resubmit the offer,but feels it’s a “waste of their time”. they also mentioned they had “no say” in the matter since it wasn’t the lenders money but rather government money.

a few questions for you guys.

  1. how should i proceed further with the resubmitted offer…should i provide any documents that will help increase the chance of acceptance? (he wants a new HUD and contract addendum)
  2. what if fannie mae rejects the offer again…is it a dead deal?
  3. would it help to have the matter escalated to the supervisor even though it’s fannie mae’s decision?

thanks!

2

i’m the only one who’s experienced ths eh? :banghead

3

It was to my understanding that government backed loans had to accept offers 88% or more during the first 30 days of the house being listed. Then the percentage goes down a bit every 30 days.

The loss mitigator should be following the PFS (Pre Foreclosure Sale) Program Guidelines if it’s a short sale.

I have an 18 page document from the HUD Department outlining the details of the program. Maybe, the guy that rejected the offer needs a refresher course in their own policies.

I would be happy to email it to you.

4

gerrish150,

if you could email it to me that would be great.

they actually called me back and asked if the homeowner would sign a promisary note or if the buyer would come up in price. looks like they are just playing hard ball or trying to bluff?

we’ll see what happens…

5

I just sent it…let me know if you didn’t get it.