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
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Hi Tejas,
I always have my buyers do their inspections up front for just this reason. If they had already done their inspection, they could simply submit the inspection report to BofA. I had this exact scenario once where the bank wanted $9K more than the buyer was offering, so we submitted the inspection report which coincidentally had about $9K worth of repairs that needed to be done and the bank came back and accepted our offer.
In your case, the others are right. If the agent did indeed submit your counter offer, the bank would have countered again and there would be a worksheet you could look at. If you are still serious about buying the property, you should pay for a home inspection which will show all the issues with the property, and then you can submit that to BofA. Usually you have quite a while to respond to the bank's counter offer, so if the seller's agent did indeed respond, you should still have enough time to do the inspection and submit it again with your offer.
Good news!
I done with this short sale!
Seller Realtor, sucked and I found even better deal with other property and it's not SS.
Now this property is re-listed back in market:) and wait for it to foreclose.
-Tejas
hello tejas. kindly contact me. i have been invited to join a special task force that allows me to escalate files that results in approvals withing a within a week for approvals such as your issue. this is a unique opportunity that has been afforded to a handful of realtors across the country. i can be reached at kim@kimkaplan.com. have a nice day.
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I know it is very frustrating for buyers not to be able to speak to the bank directly when they are the ultimate decision makers. I can tell you though, that as a short sale listing agent I am more willing to give as much info as I can to a buyer who is working with me and not insulting me. I would suggest trying to be very nice to the listing agent and working together to get this done, as well as offering fair market value.
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.
If it's a BOA Equator, ask for a "snapshot'.
Even easier than that the listing agent can save the file and send as a PDF.
Got email from BOA,
They said they would decline the offer, if it's not matching Fair Market Value?
Now how to find the Fair Market Value of a property?
-Tejas
Your realtor should be able to help you determine FMV, of course it may be different than what the bank thinks it is. Make your counter at what you are willing to pay and if they don't take it you may have to move on.
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