Does anyone know what FNMA uses for their guidelines on what type of discount they accept on a short sale?
In the past, it was always 90% of the BPO/Appraisal.
However, Wells Fargo just told me that they countered me at the full BPO value…
…LM advised me of the bpo value of $145k and then countered at that after setup rep already countered me at $132k (which I met), stating that FNMA requires a gross of $132k.
Anyone else experience this recently? How did it play o\ut with the counter offers if FNMA originally said they required more (per LM negotiator).
As an investor, what are you doing buying a property that has a BPO for $145k; for a price of $132k which you met???? What are you thinking???
If FMV (BPO) is $145k, you should not be paying more than 25% below FMV ($108,750), and in a soft declining market you should not be paying more than 35% below FMV! ($94,250)
What are you thinking my friend? I think we need to look at other properties and don’t be afraid to make multiple (Educated) offers to get one property. If you need help? Ask???
I am looking to find out if anyone else has experienced any guideline changes with the % of the BPO for FNMA on short sales. I presume that FNMA was playing hardball on the counter, but they would not budge. Now I learned that the $132k will be good.
Gold River-
“What are you thinking???” Maybe you should make an “educated” post when you have more info on a particular deal. You shouldn’t worry about how I’m making on a deal. I’ve closed on deals where I’ve only made a few thousand and closed on many more where I made much more.
FYI-I have an end buyer under contract already and I will net close to $30k on this closing.
I read exactly what you posted!!! You said and I quote "Does Anyone know what FNMA uses for there guidelines on what type of discount they except on a short sale? In the past it was always 90% of the BPO/Appraisal." ------ Now you said and I quote "However Wells Fargo just told me that they countered me at the full BPO value..." then you continued by including your next statement and I quote "LM advised me of the BPO value of $145k and then countered at that after setup rep already countered me at $132k (which I met), stating that FNMA requires a gross of $132k."
Now you did not provide any further information in your original post and $132k plus 10% is $145,200 and as an investor you have no business buying a property for 10% below fair market value and you still have to pay closing cost’s.
Now lets talk about making educated post’s was there anything else written in your original post that I missed? Besides your closing statement and I quote "Anyone else experience this recently? How did it play o/ut with the counter offers if FNMA originally said they required more (Per LM negotiator).
Now did I miss something there DJP was there “Ghost Writing” between the lines of your original post? Did you write it in “Invisible Ink” with lemon juice? Maybe it’s a posting where there’s a key like first letter of every other word?
Now I am going to go back to your second post where you basically accuse me of not being able to read! Now if you stand to make close to $30k after closing on one purchase and using transactional funding to close to your end buyer then let me repeat to you “What are you doing buying a property for so little below value?” As I calculate your selling the property for $162k which is 18% above your purchase price! I would also be aware that the appraiser acting on behalf of your end buyer has the same FNMA information that you do and as such that appraiser has the ability to get FNMA on the phone to ask “What did you assess as FMV?” And if your buyer has to use FHA financing your screwed!!!
I always buy my Shortsales, REO’s, and auction properties for an average 30% below the lenders BPO/Appraisal value plus deducting for some costs and all repairs / rehab! Rehabbing increases the homes value above the base because some repairs are valued above actual cost!
You can scream and yell and say anything you’d like however what you originally posted is what you posted and a purchase of $132k is 90% of a BPO/Appraisal of $145k
GR,
Wow, don’t go off on a tangent or anything. I was looking for input on any recent changes with FNMA short sale requirements, not an opinion of what my profit guidelines should be. I am happy to close this deal and help the seller.
If you don’t have advice for the question asked in the post, I would reserve your opinion w/o commenting on something you don’t have all the info on. I did not supply anymore info in my original post about the deal b/c I was not looking for input there.
Afterall, does it really matter what % of the BPO anyone is paying IF you have a end buyer under contract for much more. Since I didn’t initially give that $$$, you did not have any idea of what I was selling it for before giving me your opinion of what I should do — who knows…I could have had an end buyer paying $245k it!!
Your comments in your posts are demeaning and uneducated(as you say) as you continue to make assumptions on facts you are not aware. Now you can assume that I will not reply any further to your ramblings.