Fannie Mae is taking action to help home buyers and home sellers. Lenders reliying on automated systems for a property valuation have cost many, many deals and have left home sellers and buyers incredibly frusterated. It looks like Fannie Mae is moving to stop some of these problems.
Remember, you can search all Denver Fannie Mae Homes on our website.
From the LA Times:
Fannie Mae to prohibit lenders from changing home appraisals
Reporting from Washington –
Picture this: You’ve signed a contract to sell your house. Your buyers say they’ve nailed down the right mortgage. All is well. But then the appraisal comes in low – $25,000 to $50,000 under what was agreed in the contract.
The buyers refuse to pay a dollar more than the appraisal, you decline to go that low and suddenly the whole deal is off. You, the buyers and the realty agents involved are all left sputtering over the appraisal that scuttled the transaction.
This scenario is not unusual in many markets across the country, say home builders, realty agents and appraisers. One little-publicized reason: Lenders unilaterally may be lowering the numbers on the appraisals submitted to them to avoid accusations that the loans they sell to giant investors Fannie Mae or Freddie Mac are based on inflated appraisals – even slightly inflated. Such value inflations can expose lenders to “buyback” demands, forcing them to repurchase loans at huge costs.