Buyer of a BOA Short Sale with 2 liens
So I posted back in march about a house that we put a bid on that was a BOA short sale and after 5 months of waiting the bank countered with a ridiculous price so we backed out.
We started looking at houses again 2 months after backing out and of course we found one that was even better than the other one so our agent looked into it and low and behold its a BOA short sale and the biggest kicker is it has 2 liens on the house 1st mortgage is BOA and 2nd is Chase! Now we had such a bad experience with the last short sale I have no idea why we even went down this road again BUT we absolutely love the house so of course we put a bid on it! Plus the sellers agent told our agent that there were previous buyers and they got their offer approved within 2 months but something on the buyers end went wrong and they couldn't close so we I guess hoped that we would get the same kind of response! The house is listed at 180k we put a bid for 175k! So here is a little background:
Submitted Bid on 11/14 sellers accepted right away and it was submitted to the bank the next day.
I am confused about this next part and would like a little help understanding this:
Sellers Agent submitted offer to Chase (2nd lien holder) which we were unaware of at the time! I don't understand why they submitted to the 2nd lien holder first? Chase had the BPO done the very next day!
Now since I am now very experienced with trying to buy a BOA short sale I knew not to hound my agent or sellers agent cause i knew it would be a while but to my amazement my agent called on 12/23/11 to tell us the bank accepted our offer and they want to close 1/30/12. This is now where we found out that it was Chase not BOA! I asked why they submitted to chase first and my agent didn't have an answer for it. The sellers agent told our agent that they were going to submit to BOA on 12/26/11 (because of the holiday)! And she was saying they should have an approval in 2 weeks.........I took that with a grain of salt because of my experience but i figured maybe she knew what she was talking about since she already had a previous acceptance!
Our last update was last week 1/12/12 my agent called to tell us the sellers agent was a little too optimistic cause they haven't even ordered the BPO yet!
My questions are:
1) Why would they submit to chase first? And why didn't they submit to BOA at the same time why did they wait till chase gave an approval?
2) Also chase wants to close on 1/30 but obviously there is no way to do that so what happens? Will we have to start the SS process with Chase all over again?
Any answers or input is greatly appreciated!!!
Replies to This Discussion
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Permalink Reply by Richard Kirk on
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It should not take 2 months to get a BPO done...even BOA does better than that. Ask to see the Chase Approval or at least find out from them how much is Chase accepting for the short sale (there should be a dollar amount). I'm curious as to what this amount is. You now need to hope that BOA offers this amount to Chase. Typically, the first lien holder will offer a nominal amount ($3000-$6000) to the second lien holder, depending on the outstanding balance. Hopefully, Chase is asking something in this ballpark.
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Permalink Reply by Deena H on
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It states "any excess funds at closing will be refunded to us. The real estate broker may receive 8,500.00 as commission. Second lien holder may receive 5,000.00" so I get that their asking for 5k but what is the 8500 commission about? Does that sound like a normal 2nd lien acceptance?
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UPDATE*TODAY 1/19/12*: I recieved an email today from my agent that she forwarded to me from the Listing agent here is what it states:
"Thank you for your recent inquiry on 01/12/12. Please be advised that the file is currently in Offer Submission status. This stage of the process can take 3-5 days to complete. Please be advised that the task Submit Short Sale Offer is open for you to complete. Thank you for your continued partnership with Bank of America."
Not sure what that all means again!!! Sorry I'm not that much of an expert in this sort of thing! Can anyone tell me what the next step might be?
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I hate to say this Deena, but this looks like it is very early on. BOA will have several stages, this is the first. Hang in there. You want to get to Negotiation stage or "offer being reviewed"
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Awe great!!! Again the other agent said we should have a response (counter/acceptance) next week! She told my agent this was last step before getting an approval! Either she has NO clue or she is just really sugar coating it so that we don't walk!
Thanks for the info this is good for me to know cause otherwise I would be counting down the minutes till next thursday wondering when we are going to get a response now this way I can at least prepare myself that its still going to be a while! I originally said we would probably hear something by mid feb so I'm going to stick with that original thought!
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I hope i'm wrong
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No I'm sure your experienced so I think your probably right but like I said its good to know so thanks again!!!
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Permalink Reply by kathleen shaffer on
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ok, bofa approved back on 1/3 and gave us 30 days to close
but, the second, just finally approved. We now have 9 days to close.
How is this even legal??? They drag their butts for weeks, then when it suits them drop the hammer and want to close NOW>
Dont these banks have to follow the contract that we submit to them?
it reads 30 days from approval....of all loans!
Really, this SS crud is just gonna kill me. Really...they cant just extend and let the buyer legally have his time for inspection and loan completion.
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Update as of yesterday we received an email saying its currently in valuations status and they are just now ordering the bpo! It also says this process takes 1-3 weeks!! Now it looks like since the 2nd lien (chase) waned to close on jan 30th we are going to have to extend but we may even have to ask for a 2nd extension cause there is now no way to even close by feb 28th either!!! We still have a generic asset manager so after the 1-3 weeks we still need a negotiator assigned can anyone tell me if its possible to get answer by mid feb???
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UPDATE******2/2/12
We recieved a counter offer yesterday of 188k, the house was listed at 180k. The offer says for us to come with our highest and best offer. We are thinking of countering with 180 or 181, but looking at the offer worksheet it says we have to pay 5k for the second lien. I'm so confused as to why they countered with higher than the listed price and if we accept that counter plus pay the 5k for the second lien, we are going to be paying 193k total! Can anyone tell me if BoA will come down from the 188 or are they usually firm on their counters?????
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Permalink Reply by Mary M. Bremer on
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The worksheet most likely has already deducted the $5000 second lien from the first lien's proceeds. Did BOA agree to pay the $5K?
So whatever the purchase price ends at is what you are paying. (if this was done correctly or if you agree to pay more).
Was there a backup offer from another buyer presented? and is that why they are looking for your highest and best.
Because normally, BOA counters with an actual NUMBER that they want to net. (anyone else?)
If not, I would ask your realtor to get a copy of the HUD/worksheet that was provided to Bank of America and a copy of the printed counter counter offer. (They can print it off the Equator system).
If you can get that, then please upload it to this forum so we can review. If you cannot get the document, get the actual figures that were provided and let us know.
Finally, not only does BOA have to approve it, but the seller does as well. Not knowing specifics of that is key. (is BOA or the 2nd lienholder imposing a deficiency judgement etc?, is the 2nd lienholder asking for cash from seller?, is this seller's primary residence). Again, ask the selling agent.
EVERY SS is different. That is why you need a Short Sale realtor on your side to find all this out.
Good Luck!
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Talked to my realtor earlier and I'm not completely sure if BoA agreed to pay the 5k or if the sellers agreed to pay it, either way the sellers lawyer told my realtor that its not for us to pay and that the worksheet even though it has a buyer and seller column doesn't mean anything!
There is no backup offer so not sure why they are saying to come highest and best but we did decide to counter with 181k and my realtor is providing comps with the offer!
I have the worksheet in my email but it has too much personal info on it that I can't eliminate so I'd rather not upload it sorry!
The 1st lien wants the seller to come with 2500 cash to closing and they agreed to that and again I am not sure who is giving the 2nd lien holder the 5k!
But thanks again for your response any info helps!!!
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