Fannie Mae and Freddie Mac have adopted the new HVCC guidelines, which basic purpose was to protect the consumer from buying property that was over valued. Keeping the appraiser, realtor, loan officer "honest" so that the client bought a home for the True value and not over pay for a home due to an inflated appraised Value.
What I find odd is that in a recent transaction on a foreclosed condo here in Santa Maria, Ca. which happened to be a Fannie Mae owned property they would not accept the appraised value and were insistent that my cleint buy the home on the accepted purchase price not the appraised Value. The appraisal came in 10k shy of the purchase price.
I tried to reach someone in Fannie mae since I could not talk to the asset manager about the inconsistent policy they seem to have. But was given the run around I tried to email someone there still waiting on a response after two emails and several phone calls. Its not hard to see why we have issues in real estate when those that make the rules for others do not neccessarily follow the rules themselves. If they are to dictate the guidelines on to which and how the loans are to be done in order for them to buy the loans on these properties. Logic would dictate they follow them as well.
The frustrating thing is that this is a govt. sponsored corporation that the taxpayers now own but have no real say and it seems to be business as usual.
The postive thing out of all this is my client was going to sign the amendment stating that he would agree to buy the condo regardless of the appraised value or forfiet his deposit, but I convinced him not to. He was sure the price and the appraised value could not be more than 2-3k.
Something to keep in mind when buying a home especially a forclosed property. The listing agent represents the seller or bank, for their best interest. The buyers agent represents you the buyer. Something to think about when buying that home.
Gene Perez, 01321588
Buying or selling a home or property in Santa Maria CA, or a Santa Maria foreclosure, or a property on the Central Coast, my goal is to provide you with resources you need.
Gene, just to be clear....who are they keeping "honest"? I can appreciate the frustration your feeling about getting a response from them. Good Luck with it, and Good Post