Replies to This Discussion

Permalink Reply by Wendy Rulnick on June 28, 2011 at 5:05pm

Who is the lender, Paul?  Was the relationship disclosed at the beginning of the sale?  Provide more details.

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Permalink Reply by Paul Silva on June 28, 2011 at 5:50pm

Bank of America is the lender on the first and there is no second mortgage. As for the relationship being disclosed I'm not sure.she told the bank that. Is that a deal beaker?.

THANKS
Paul

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Permalink Reply by Jeff Payne on June 29, 2011 at 9:14am

Paul, your realtor needs to push back and fast!  The fact that your seller and agent are related is irrelevant,  the current market value and your offer are what is most relevant here.  Arms length transaction definition is getting terribly distorted lately and as long as your transaction with the seller is arms length then this sale should occur.  I would guess that the negotiator on the file does not understand arms length and can only read between the guidelines and can not think outside of the box.  Push this thing and escalate to the investor on this one.

 

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Permalink Reply by Christina Conrad on June 29, 2011 at 2:55pm

Jeff is right...it probaby is someone that is new and doesn't understand arms length transactions...I had a similar deal with BOA recently where the Listing Agent and Buyer were related and we had the Arms Length and BOA denied the ss in Equator...we had to start over because the BOA rep.  kept saying you can't do it...well you can, we have done it plenty of times b/4..they just don't pay the commission...so we assigned another listing agent and reinitiated the ss and it went through...

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Permalink Reply by Paul Silva on June 29, 2011 at 9:49pm

Christina Conrad said:

Jeff is right...it probaby is someone that is new and doesn't understand arms length transactions...I had a similar deal with BOA recently where the Listing Agent and Buyer were related and we had the Arms Length and BOA denied the ss in Equator...we had to start over because the BOA rep.  kept saying you can't do it...well you can, we have done it plenty of times b/4..they just don't pay the commission...so we assigned another listing agent and reinitiated the ss and it went through...

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Permalink Reply by Paul Silva on June 29, 2011 at 9:59pm

Thanks for all the great advice, I will forward your replies to my Realtor.

I appreciate your help!!!

Thanks again

Paul

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Permalink Reply by Brian Avery on July 2, 2011 at 1:37am

I am going the opposite direction on this. Because everyone is so afraid of fraud the relationship with the Realtor is an issue.  Just like lending "Arms Length Transactions" are picked apart. It has to do with offer vs BPO . If BofA had set the price prior then it would not have been a problem.

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Permalink Reply by Bryant Tutas on July 10, 2011 at 7:00am

I'm going to blast this out in the newsletter today., Lets' see what our members have to say

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Permalink Reply by Larry Story on July 10, 2011 at 7:18am

Bank of America has a standard Arms Length Affidavit.  So if it was not disclosed in the beginning they would find out later.

They are constantly hiring and always seem to have a constant stream of inexperienced employees.  

 

More and more they are also using Asset Management companies so who knows their experience or guidelines they are operating off of. 

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Permalink Reply by Scott Korbin on July 10, 2011 at 8:12am

Here are some of my recommendations:

1. Ask the Realtor(R) if they will allow you and your Broker of Choice to meet face to face with the Seller
to discuss the matter (if at all practicable).
2. Find a Short Sale Superstar in your market that will agree to:
a. Meet with you and the Seller to talk about the next steps required, including exposing the property to the market as required by the regulator, and
b. Act as a Dual Agent, and
c. Re-open the case for the Seller, and
d. Submit your Offer to Purchase to the Lender/Investor.

There are certainly other steps that a Short Sale Superstar would likely recommend
if you have not already taken them e.g.
a. Complete a Home Inspection,
b. Have the Broker complete a Broker Price Opinion,
c. Estimate the cost of repairs
d. Your Short Sale Superstar will research and determine if there is an established minimum offer required for that sub-market by the investor in order for them to agree to review the contract. 

At that point, you will have made some reasonable progress towards achieving your objective.
Bear in mind that the Agent with share the facts as they know and learn them, but it will be up to you to decide on how much to offer.

There are probably as many different ways to handle this situation as there are Brokers, so while this was just a brief overview on some of the steps that I would recommend, I'll observe some of the additional Superstar Feedback and chime in again soon.

All the Best to You in your Short Sale Endeavors!

Scott Korbin, MBA
Broker In Charge
Triangle Home Masters
(919)677-9911
http://www.TriangleHomeMasters.com

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Permalink Reply by Scott Korbin on July 10, 2011 at 8:18am

Jeff,

I disagree with your assessment. Most regulators, if not all, deny contracts where a relative of the Seller will receive any benefit from the Short Sale. The possibilities of the Seller benefiting from the Short Sale financially are obvious.  I could be wrong. I often am. But I would find a Broker who is not related to EITHER party. Please take no offense, but I have never known an investor to approve a Short Sale transaction knowing that there was a relative involved as the Broker for the Buyer or the Seller.

Jeff Payne said:

Paul, your realtor needs to push back and fast!  The fact that your seller and agent are related is irrelevant,  the current market value and your offer are what is most relevant here.  Arms length transaction definition is getting terribly distorted lately and as long as your transaction with the seller is arms length then this sale should occur.  I would guess that the negotiator on the file does not understand arms length and can only read between the guidelines and can not think outside of the box.  Push this thing and escalate to the investor on this one.

 

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Permalink Reply by Scott Korbin on July 10, 2011 at 8:20am

No commission certainly would help, but the BPO would have to come from a 3rd Party or you'd have to order an independent appraisal. Better yet, avoid the Arms Length in all matters. JMO.

Paul Silva said:

Christina Conrad said:

Jeff is right...it probaby is someone that is new and doesn't understand arms length transactions...I had a similar deal with BOA recently where the Listing Agent and Buyer were related and we had the Arms Length and BOA denied the ss in Equator...we had to start over because the BOA rep.  kept saying you can't do it...well you can, we have done it plenty of times b/4..they just don't pay the commission...so we assigned another listing agent and reinitiated the ss and it went through...

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