First a little background before getting to my question: I have a home that has been listed since November (Illinois). We are now down to $149K on the property and still can't get an offer on it--floodplain and structure issues prevent people from moving forward. I need to drop price another $20K in order to get an offer. Clients paid $250K in 2006 for home and that is what is owed. Two loans first with BOA ($200K) and the second Green Tree ($50K). Green Tree is in the process of sending their file to the loss mitigation dept. Two months ago, my clients found out that they are eligible for a HAFA short sale. The BPO was ordered and they are just waiting for the final paperwork. I called to find out what price they would want us to list the property at and was told $256K! I was flabbergasted!! I had met the appraiser (who was local) at the property and gone over the issues with the house, etc. so I knew he didn't come in that high. I asked what the appraisal came in at and was told $180K. Later the rep. told me she wasn't supposed to give me that info.So now I am thinking maybe we should just proceed on the regular short sale track--to list at $256K is a kiss of death! Anybody have any suggestions or ideas of how best to proceed would be greatly appreciated? My clients have not signed the final HAFA short sale paperwork yet.

Views: 241

Reply to This

Replies to This Discussion

Isabel. Has the seller signed the SSA (Short Sale Agreement)  related to the HAFA short sale? If not I would ignore what they said and just move forward with getting the property under contract at fair market valued based on the condition of the property. If they still want to try the HAFA then submit the short sale package with 3 estimates for the repairs, flood plain info, market analysis and the ARASS (Alternative Request for Approval of Short Sale) form. These can be found in our HAFA group.
They have only signed the preliminary paperwork indicating that they were interested in the HAFA. The final paperwork they are expecting to receive sometime this week. What you suggested seems like the most realistic way to move forward with this short sale.
If you get an answer, please let me know.  It seems to me to be a deliberate attempt to sidestep HAFA in my opinion.  I had the same type of thing happen on a CHASE HAFA file.  We already had an "approved" price through traditional methods of which was not moving the house and the HAFA letter instructed us to raise the price to almost $50,000 higher. 
Another apporach we have successfullly used is go on-line and find out if it's a Fannie (http://www.fanniemae.com/loanlookup/) or a Freddie (https://ww3.freddiemac.com/corporate/).  If so, by-pass the lender (Chase, BoA, etc) and go straight to Frannie or Freddie and enlist their help. You can get the contact info from their websites.  They have worked miracles for us, especially with BoA.  They are the investor and they want the house sold and the short sale done and as long as you can provide 3 recent comps and a pricing/showing history for the porperty supporting your pricing they should work with you and hold BoA accountable.  Good luck...
Isabel,one of the first things established between the lender and agent is their BPO,that's not a secret,but a basis from where to start from. If the BOA loan is a government loan,then usually 88% of the BPO is the lender's bottom line and that includes all sales expenses. You will have to include payoff to Lending Tree,whatever you negotiate with them. You have a lot of work ahead of you,but hang in there. Don't be afraid to ask for help.
Isabel, I have done about 50 short sales in the last 12 months and have never faced such a situation that an agreed seller for short sale or a bank will dictate you the price. BOA has a form for disputing the BPO. If you can not find it on their website,you can request the negotiator to send you one. You should send 3 recent comps with that form. Keep on pushing!
Thanks for your suggestion, unfortunately it is neither a Fannie Mae or Freddie Mac property!

Alyce Nelson said:
Another apporach we have successfullly used is go on-line and find out if it's a Fannie (http://www.fanniemae.com/loanlookup/) or a Freddie (https://ww3.freddiemac.com/corporate/).  If so, by-pass the lender (Chase, BoA, etc) and go straight to Frannie or Freddie and enlist their help. You can get the contact info from their websites.  They have worked miracles for us, especially with BoA.  They are the investor and they want the house sold and the short sale done and as long as you can provide 3 recent comps and a pricing/showing history for the porperty supporting your pricing they should work with you and hold BoA accountable.  Good luck...

Isabel,

Just a quick question: . is there a foreclsoure sale date soon on this one? If so, HAFA acceptance will stall that sale date for you - which might be a benefit as you search for  a buyer.  Since it's not Fannie Mae or Freddy Mac, I would check to see if there is Mortgage insurance. If there is mortgage insurance, it may throw a wrench in things, as it may be the MI that's setting the high acceptable value.

Finally, I totally agree with you. Regardless of whether you accept the HAFA or switch to Traditional (or go with the streamlined short sale ). . . your immediate job is to  FIND A BUYER and prepare your argument for value (comps). REMEMBER. . . Arguing value is the norm in this business. Having a good BPO value come in is a gift- a rare treasure - doesn't happen as often as we wish.

 

Hope that's helpful. Best of luck!

There is no foreclosure sale date set yet. I will look into the MI to see if that is a factor in the suggested list price, and I will continue to market and sell the home at what is truly reflective of the value in the property! Thanks for your insights.
I will let you know how it moves forward!

Tni LeBlanc said:
If you get an answer, please let me know.  It seems to me to be a deliberate attempt to sidestep HAFA in my opinion.  I had the same type of thing happen on a CHASE HAFA file.  We already had an "approved" price through traditional methods of which was not moving the house and the HAFA letter instructed us to raise the price to almost $50,000 higher. 
Thanks so much for your insights.

Aziz Seyal said:
Isabel, I have done about 50 short sales in the last 12 months and have never faced such a situation that an agreed seller for short sale or a bank will dictate you the price. BOA has a form for disputing the BPO. If you can not find it on their website,you can request the negotiator to send you one. You should send 3 recent comps with that form. Keep on pushing!
AMEN!

Linda Zemler said:

Isabel,

Just a quick question: . is there a foreclsoure sale date soon on this one? If so, HAFA acceptance will stall that sale date for you - which might be a benefit as you search for  a buyer.  Since it's not Fannie Mae or Freddy Mac, I would check to see if there is Mortgage insurance. If there is mortgage insurance, it may throw a wrench in things, as it may be the MI that's setting the high acceptable value.

Finally, I totally agree with you. Regardless of whether you accept the HAFA or switch to Traditional (or go with the streamlined short sale ). . . your immediate job is to  FIND A BUYER and prepare your argument for value (comps). REMEMBER. . . Arguing value is the norm in this business. Having a good BPO value come in is a gift- a rare treasure - doesn't happen as often as we wish.

 

Hope that's helpful. Best of luck!

RSS

Members

© 2019   Created by Brett Goldsmith.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************