Another Equator/Bank of America Shortsale deal thrown to the side...Have you been or heard of anyone in this situation who has got their deal closed?

I am helping an agent close a transaction. It has been three deals that have fallen for the same reason all getting this same exerpt after the offer have been approved and a week due date to close. The agent has had 2 listings representing the seller, and a buyer with an offer. All have been approved ready to go, and all have gone into foresclosure even at a lower price than offered. The latest offer she is representing a buyer and the exerpt reads again:

"Because you are not meeting the investors offer requirement, this file will require external approval. Please allow for the response to be received from the investor as the files are worked in the order they are received. The review time frame is about 2-3 weeks. Any additional conditions of approval will be conveyed once file has been reviewed. The additional conditions will require acceptance per the Equator Worksheet. Any questions please send through the Equator messaging system".
 
What is going on with these deals with Bank of America. Are they even considering the deals. Are they not getting handled by humans, but, computer automated systems or is the equator party keeping these sales from happening just to do so or my last thought is equator having their people accumulate these properties to sell them in bulk to certain investors?The prior offers were at asking price with appraised value the same. In these particular deal involved now, the offer was 1115k appraised value of 100k. Comparables are average and decreasing. The selling agent has cooperated with both Equator and BOA, at one point or another she has called BOA to follow up since equator has been slow at responding. I definitely would hate to lose this deal to foreclosure. Does anyone know how to handle this transaction from going into foreclosure? What do anyone reccomend we do?

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Replies to This Discussion

Permalink Reply by joe beauchamp on January 23, 2012 at 6:48pm

I'm missing something - your deals have been approved and must close in a week and THEN you have to wait for -- an approval - instead you get foreclosure.  Huh?  I'm guessing that they were not approved.

Some points: investor guidelines have 2 numbers.  Above them both, the negotiator can approve the deal. Below them both, the negotiator is forbidden from approving the deal.  Between the 2 and the deal must go to the investor to approve (and that is not necessarily a good thing because they often are annoyed and come back with a counter price higher than where your negotiator was and often take weeks longer.  Your comment makes it seem like you are in the middle of these numbers.

More: the bank is a servicer, really could care less about investor losses overall.  They are paid to simply manage the account - foreclosure means more money to them and the property goes to their REO where they continue to be paid to manage the account.  Nobody is looking at what happens from the lousy killing of a good deal and the sale at a lousy price during REO.

More more: they tend to get the approval expiration date from whatever HUD-1 they last got from you.  When these go on for months with no movement, you can end up with an approval that expired before you got it, so being due in a week is no surprise - not intelligent but it happens over and over.

Finally: do not rely on Equator - nice tool but you should be calling in every few days to ask for status.  The rep will look at due dates and poke the negotiator for you even w/o you asking.  You need to stay on top of things.

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