Consumer complaint received 2023-12-24
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: MEMBER FIRST MORTGAGE, LLC (IN)

On XX/XX/XXXX my realtor XXXX XXXX submitted a mortgage assistance application to Member First for a short sale as I owed more for the home than what it was worth. XXXX also submitted a cash offer of {$140000.00}. Per XXXX XXXX on XX/XX/XXXX we received the appraisal back at a valuation of XXXX XXXX investor guidelines indicate the property must be listed on the market as active at no less than the appraised value for 15 days atleast and all offers are to be sent to us to review. Once the 15 days is up, we will review all offers and either approve or deny. 
During the 15 days of the property being listed on the active market three offers came in all at {$140000.00} ( XXXX ). Throughout the 15 days XXXX XXXX ( Realtor ) was sending all offers and feedback regarding the home to Member First ( XXXX XXXX ). 
On XX/XX/XXXX XXXX XXXX emailed that Loss Mitigation will be closed out. This is no longer considered a short sale, so we are unable to review for a short sale as investor guidelines state the home has to be listed at appraised value, which is more than the XXXX so we will not be reopening the short sale request. XXXX XXXX ( realtor ) informed XXXX this property has a number of liens and judgments attached exceeding the XXXX appraised value and the title company would be unable to provide clear title without these items being resolved within the short sale. 
On XX/XX/XXXX XXXX stated id like to keep the home on the market available for buyers for a bit longer to see what else comes through due to the discrepancy between the offers and the appraised value. 
On XX/XX/XXXX We would be ok with anything currently that will payoff the loan, which will be less than the XXXX appraisal amount most likely. But for sure not the XXXX offers. I am hoping we can get this payoff to you today. 
On XX/XX/XXXX XXXX XXXX ( realtor ) advised XXXX ( Member First ) that the apprised value is too high, and she would like to dispute the value. XXXX responded on XX/XX/XXXX If you would like to dispute the appraisal you will need to provide reasons why the value should be different from the appraisal and provide XXXX aswell on why. The appraisal did go through two quality checks, so I am confident the value is accurate. A lot of good condition homes near this property sold for over XXXX. 

The exterior of the property appraised at XXXX, which means they dropped the value to XXXX ( XXXX ) when seeing the condition inside the home. 

I also want to state that the property has not been listed for even 30 days yet sometimes it takes time to get a offer on a property. Initial offers are going to be investors or people who want to flip it. I am more than happy to entertain other offers that are closer to the appraised value. 

XX/XX/XXXX I received documents from the sheriffs department that I had been served for auction on XX/XX/XXXX. 
On XX/XX/XXXX Realtor XXXX XXXX contacted the appraiser XXXX XXXX who stated that his originally as is '' value based on condition and repairs of the home was sent to Member First at $ XXXX. XXXX stated when the appraisal was submitted to Member First he was advised it was too low and he needed XXXX stated he raised the value to XXXX and was once again told by member First the value was to low and it needed to be XXXX which is magically the amount I owe to the lender. This is a major consumer violation and unethical. 

I am now trying to work with the bank to rectify selling the home to prevent a foreclosure on my record. Member First continues to give us a run around, change the value and send the home back to auction. I am asking for the bank to do the right thing which is accepting the true as is value of $ XXXX and stop the auction for the short sale to proceed.