West Sacramento Short Sale Information - Fannie Mae Price Gouging

Mike Rigley Certified Default Advocate, Distressed Property Expert and your short sale specialist here thank you for joining us. Today let’s talk about Fannie Mae’s latest attempt at price fixing.

There is no secret that there is a current shortage of homes for sale. The law of supply and demand usually dictate when inventory is low and demand is high, prices go up. The West Sacramento housing market is no different. The real issue is when properties are financed the buyer still has to get an appraisal and without the appraisal the lender won’t loan.

Now since Fannie Mae and Freddie Mac hold nearly 60% of America’s mortgages it is no surprise that they are also major players in the bank owned arena as well as the final say in approving many West Sacramento short sales. For years Fannie Mae has offered Home Path Financing. Under Home Path no appraisal is required and the loan is sold back to Fannie Mae. Fannie is notorious for over pricing their Bank Owned properties in an attempt to gauge the consumer and get them to use their Home Path financing.

Well their price fixing strategy has now gravitated to West Sacramento Short Sales. Where before if you brought a Fair Market Value offer to a Fannie Mae servicer like Bank of America or Citi, you could count on getting it approved. Lately Fannie Mae has been declining files and asking for anywhere from 20-30% above Fair Market Value to approve the West Sacramento Short Sale.

I gotta tell you, no matter how low interest rates are there are not too many people willing to over pay by 20-30% for anything much less a house. If you can’t sell the house for the inflated price Fannie Mae forecloses and sells it as a Bank Owned. We all know the investor, in this case Fannie Mae loses about 25% on a foreclosure vs. a West Sacramento Short Sale so what did we really gain? That’s right – NOTHING. And really, isn’t this artificial price fixing what got us into trouble in the first place? It at least had something to do with it. I guess what galls me the most is, here we have an entity supported by our tax dollars putting the screws to the very people who support them and our elected officials don’t seem to care. Guys – it’s time for Fannie Mae to start acting in the best interest of the consumer: Just saying…

Is a West Sacramento Short Sale Right for Me?

To get a better idea of when your West Sacramento home will be worth what you owe, log in to www.shortsaleandloanmod.info for a free estimate or call me today for a free no obligation consultation or for the latest West Sacramento short sale information. Call me today and sleep better tonight; you’ll be glad you did