Freddie Mac Counter Too High!

There was an update that took place November 2013 for Freddie Mac’s guidelines. Since this update Freddie Mac counters have been coming back at an all time high. This has caused a huge delay in file processing due to value disputes needing to take place. It also has been the straw that has crumbled many transactions as buyers do not want to purchase properties about fair market value. This has been occurring on Fannie Mae files as well.

Why Is This Happening?

These investors are now taking it upon themselves to review the values completed by the BPO agents and appraisers that were previously reviewed by the mortgage servicers. These investors are now the ones coming with their reconciled value and are the ones issuing the counter offers. Many of these values come back too high. For example we have a transaction right now that was countered to a minimum NET to the lender that exceeds the loan being paid in full which would mean this isn’t a short sale. The facts are that this property is definitely underwater according to all comps in the area. It seems these investors may be trying to delay short sales and foreclosures because property values are increasing. If this is the case they realize that by delaying short sales they will be able to mitigate additional losses which could account for billions.

Value disputes will need to be completed to contest values that are too high. For assistance or questions in regards to escalating a short sale matter please fill out the form below.

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