We know a lot of negotiators in different servicing companies. The servicer is the company that accepts and processes the mortgage payments for the note owners/investors. You could be sending your mortgage payments to Chase but Wells Fargo could own your note. Fannie Mae and Freddie mac own a lot of the notes. We find out who owns the note on each of our short sales before we start negotiating because that dictates how we are going to negotiate and what the likely expectations will be. 
As we do more and more short sales over these years we have come to know some of the key players in some of the lender servicing companies. Nestor is the best at nurturing these relationships and thus we at times get to be privy to information not normally available.
It has come to our attention by more than one servicer that Freddie mac is now backlogged. In fact, so much so, that we are being told to NOT expect any more of our 10 day turn arounds that we have been getting from Freddie mac for short sale approvals.
We have been warned that Freddie mac is totally backlogged and swamped with the amount of files they have. One of our short sale files has been at Freddie for over 4 weeks now without the acceptance of the short sale being returned to our negotiator at the servicer.
So let me get this straight- the Federal Government has hired 78,000 new employees to go to work on the government payroll and none of these can be sent to Freddie mac to help out?
Is there something happening that we don't know about? Since it is obvious that no one in DC, Freddie, Fannie, Congress and up really gives a hoot about the housing market as we well know they do nothing but hinder our ability to sell the inventory and cut us off at the pass- perhaps we need to dig deeper.
What is the benefit to Freddie to not process these short sales? What happened between last month and this month wherein Freddie can no longer process short sale approvals in a timely manner? Since the government is on a spending spree why can't they hire some processors for Freddie?
We had our first acceptance to ever come back from Freddie requiring the homeowner to execute a promissory note for a part of the deficiency on the first mortgage! We work on a lot of Freddie notes and they have not ever even asked our investors to execute promissory notes on firsts much less a homeowner.
Could it possibly be that they need to create another emergency so that their second stimulus bill can get passed with another thousand pages that no one reads? Are they stalling the inventory? Are they stalling short sales?
What is up with Freddie?????
Is Freddie Up To Something More Than Just Being Swamped? by Katerina Gasset is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License.
Nestor Gasset and Katerina Gasset- Realtors®, CIPS, ABR, SFR, GRI, REOS
Stalling, I suspect. Anything to do with government right now is slower than syrup in the winter.
Maybe they are all in cahoots with Obama who now apparently wants to keep people in their houses ...as renters.
Landlord? Uncle Barack, of course.
Katerina, the directional-indicators revealed by your recent experience is not good news for a housing recovery. Could this be a reason to not allow essential institutions in our industry to remain under US Governemnt control? John
Something is up. Why would you hold out for a greater loss than working with people to mitigate the loss. I think they are up to something. I do not trust our current Administration. There is something else going on. No one is this Stupid. President Obama has mentioned global and this and that from time to time that leads me to think that he is looking for an opportunity to negate the untited States in favor of a world goverment. How I am not sure yet..but I am sure that there is more to this than we would ever know-Dinah Lee
Government does as government wants for as long as we allow it to. Of course, if one waits too long then we will not be able to change the direction of the tides. It's happened before and it's appears to well be on it's way to happening again. Maybe we will become the United Socialist States of America.
I often wonder how many people is working in Freddie Mac and Fannie Mae... sometimes the process is so slow that maybe only 1 person work there and process all the loans!
Not good news, hopefully they will get it figured out soon.
Katerina, exactly..... what is being done to ease the troubles in the housing market from Congress....nada....do they think that these troubled times are going to get better? I think not. When will they wake up and put their efforts in streamlining and approving Short Sales? It's incredible!
Not good news!! This backlog that is being experienced only hurts the housing market more. Anyone knows what ever happened to their pilot program in Orlando to process Short Sales quicker by establishing a sales price at the getgo?
I have a Freddie Mac owned note going to investor approval soon. I will see how long it takes.
So far, my experience has been a slow process with Countrywide as they state that thier negotiators that handle government backed notes are backed up, not the investor itself. Countrywide is also the one asking for promissory notes (out of the Arizona Office) on first non-recourse loans as well.
Thanks for the heads up.
Amiri- I am not just hearing this from CW. I am hearing this and experienced this from Chase and Suntrust just lately. The person at CW is in one of the highest offices. She deals direct with these kinds of issues.
I also have one that I had to resubmit to Freddie Mac because we changed the buyer, and it is taking forever. Everyone is angry and I feel so badly that I cannot push because now it is completely out my control. My short sale is right there in line with yours. At least we can keep each other company!
Melissa,
Did you hear back from Freddie Mac since July? I am a buyer with Freddie Mac as the invetor. It's been two weeks since it was sent to them. There's only one mortgage - I'm just wondering how long it will take to turn around for Freddie. Are they still backed up? What of the new rules being implemented in April for short sales?
While Freddie has new rules for short sales, do they follow the rules themselves? Doesn't seem like it.