BOA/Equator Counter Offer too High short sale

I received a counter offer from BOA/Equator system about 25% more than offer price. The home is not in good condition and needs a lot of fix around 25K. I am sure BPO doesn't take into account all this facts as condition is subjective to buyer, but it's not in normal condition and therefore sold "AS IS".

Also, home would not appraise anywhere close to counter offer price, seller also knows this and that seller is selling for around 60 cents. The most obvious route is it goes to foreclosure considering the property needs work and only investor will buy to flip it.

I have following questions

1) Did anyone else had such miss pricing in the BPO counter offer? If so what steps could be taken to rectify the offer?

2) How difficult is it to get short sale approved when seller is underwater more than 200K on 600K property? what issues are likely to come under such scenario going ahead?

-Tejas

0 members like this

▶ Reply to This

Replies to This Discussion

Permalink Reply by Wendy Rulnick on January 8, 2012 at 5:00pm

Tejas - My first step would be to call the negotiator (if the buyer does not agree to the counter), or even beforehand (following your instincts). Ask if there is any leeway regarding the counteroffer. There normally is. Try to save it that way first. If that doesn't work, dispute the BPO. There is actually a BOFA form available to do that... Finally, it is not difficult to get short sale approved with a $200,000 loss. In my area, that's the normal "low"!

▶ Reply

Permalink Reply by tejas on January 8, 2012 at 9:57pm

Thanks,

Tejas

▶ Reply

Permalink Reply by Sheyenne Schultz on January 8, 2012 at 5:53pm

Remember guys ...this is a FIRST OFFER from the bank. Of COURSE it's going to be high. Short sales are no more than a HIGH STAKES POKER game between u and the bank. Stand FIRM at your price if this is the true value...counter them back at like $250 higher. And this time send in several items to SUPPORT your reasoning and staying at this value. Send in YOUR COMPS to support this, any invoices you have on the COSTS to FIX or CURE these items, which further brings the value down to your level...and any pics, etc. Crime stats, sex offenders, etc.. Doing this WILL help to show the bank that they are wrong in their valuation. If you are that SERIOUS that their price will NOT appraise, it wouldn't hurt to actually send in an actual appraisal coming in around the VALUE you are at, and show them that the VALUE THEY are placing on this property won't appraise for ANY buyer. Period. Counter back...like I said and send in your supports to the negotiator, team leader, manager, VP, and SVP, executive review and customer service. They will have to look at these items of PROOF BEFORE countering you back a 2nd time. I guarantee you, you'll get your 2nd counter AT or very NEAR your offered price. Good Luck!

▶ Reply

Permalink Reply by tejas on January 8, 2012 at 7:23pm

Thanks your reply does help.

Would try to work on the pointers you provided.

Tejas

▶ Reply

Permalink Reply by tejas on January 9, 2012 at 10:14pm

Bank said offer is too low,
Seems kinda adamant

Any pointers?

Tejas

▶ Reply

Permalink Reply by tejas on January 10, 2012 at 10:55am

Seller realtor has no experience,
She thinks bank will not accept counter offer and asking us to release the deal.

Is there a way to know what actually bank response is? How do I know seller realtor is not lying or she is not putting case through bank?

Any help appreciated

Tejas

▶ Reply

Permalink Reply by Jeff Payne on January 10, 2012 at 11:09am

The bank seems adamant? I doubt it is the bank being adamant but the listing agent. The bank has no emotional involvement.

Did you see the offer worksheet from Bank of America on the counter?

Everything is done online, ask to see the offer worksheet and then make a counter offer based on what you are willing to pay.

▶ Reply

Permalink Reply by tejas on January 10, 2012 at 11:48am

First time around we had offer worksheet, the price was quoted too high as some on forum said, first price is always like that.

So we countered with $500 more, to play the poker game as someone here suggested.

Now seller realtor says bank says it's too low to continue, we didn't get any new worksheet.

How to find actually the seller realtor is working in right frame of mind, she is telling to match exorbitant first offer from bank

Tejas

▶ Reply

Permalink Reply by Jeff Payne on January 10, 2012 at 2:40pm

Nope, the bank is either going to counteroffer your counter on the worksheet or decline the short sale. If the listing agent submitted your counter, they will be able to show the worksheet with your counter to prove it.

▶ Reply

Permalink Reply by Janis Schade on January 9, 2012 at 3:42pm

Always more than one approach! If you have justified repairs that would have to be made regardless of whether the bank forecloses, or your buyers have to make the repairs, turn in a professional bid. I don't mean things like finishes, paint, etc. If there is structural/foundation issues, mold, or major electrical/plumbing, you can probably get the counter lower. Keep track of your showings, and your responses from agents. In fact, Centralized Showing does a great job on getting feedback responses, which can be dumped into a reporting feature. It works great for BPO meetings also.

As far as underwater, remember, the second lien goes away if the home forecloses. Worry about first position liens first.