Coaching
Disputing a property’s value in a short sale: turn a no into a go
During a short sale, there may be various obstacles, with misaligned property values ranking near the top, but it doesn’t have to be a dealbreaker!

Coaching
Short sale standoffs: how to avoid getting hit
The short sale process can feel a lot like a wild west standoff, but there are ways to come out victorious, so let’s talk about those methods:
Coaching
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Hank Miller
November 6, 2013 at 6:58 am
On the surface the common sense things are pointed out. However, common sense does not apply with lenders and short sales. Similarly, common sense doesn’t apply with most agents and their opinions – and how they approach the appeal process.
FNMA appraisers are completing many short sale appraisals, lenders are moving away from BPOs as they look to maximize the sale price of properties. The appraisers (I have been a FNMA appraiser for over 9 years) are expected to cast the best light on the home with strong regard to rising market prices. In short, lenders are fine foreclosing on homes in rising markets – especially with the insurance and fed handouts helping. The banks will not lose money – remember that and you understand the rules. The mentality of distressed homes has been “bargains”….that is long gone.
Also, most agents do not provide a solid argument for value disputes. Appraisers require closed sales that meet the requirements for time and distance – and that are comparable. Agents, either through a lack of knowledge or ignorance to the appraisal process, often seem unable to grasp this simple fact. Appraisers have no interest in any property other than to impartially complete the assignment, there is no reason to skew the results in any direction.
The one key are that should be examined is marketability of a home – focus on the days on market, functional or external obsolescence, market reaction to things about the home. I find it better to demonstrate and illustrate the issues AND THEIR IMPACT on marketability than to take a shotgun blast at data. Agents focus on the present, appraisers tend to focus on the past (closed sales). The big but – #5 cannot be overstated. I’ve seen countless “appeals” that look like a third grader wrote them…that undermines the argument the moment the reader gets started.
Ro Reed
November 6, 2013 at 8:44 am
…unless you are working with FNMA. Their values are off the charts ridiculous and have been for some time now. I wrote a compelling case, showing that in fact the offer on the table may very well not even appraise and they actually reconsidered and came back higher. It is rumored that they are using models which take recent history into account, and since we had a booming first half of the year, they project that out for the next year plus (until they foreclose) and somehow reason that is the value to be paid today. There are so many flaws to this plan, not the least being the slowdown experienced in the third quarter vs. the second, the tighter lending restrictions starting in 2014 with Dodd-Frank, and simply the fact that no one is going to lend on the promise of increased value down the line. To give concrete numbers this was a property listed at $72,500, which recent comps bore out at $67,500, and Fannie wanted $80,000 and then $85,000!
I agree that you need to be thorough in your value dispute, however, logic does not always win out in short sales.