B of A 2nd with no verifiable financial hardship.... Mission Impossible?

Hi everyone, I have a client who has a Citi 1st and BofA 2nd HELOC (originally National City purchase money). He is paying $4K for a 2bd condo and is going to either short sale or walk away. He makes plenty of money (mostly commission), there is no real hardship except that his wife is out of work. His loan mod request was denied as even without her income they were under DTI reqts.

I have never worked with BofA and am unsure this one is worth taking on as I dont know the likelihood of it closing BofA. But since he is going to walk either way, it might be worth a shot, only very time consuming for all involved - including potential buyers.

 

Can anyone give me their take on this situation and if they have done something similar with BofA?

 

Thanks for your help!

 

Scott

 

 

Views: 46

Replies to This Discussion

Permalink Reply by Lori Young on March 2, 2010 at 10:53am
The wife is out of work. I would think that is a hardship. If a seller has requested that you assist them in a short sale you list the property. This determination is up to the lender not the Realtor. Stick to selling and not financial analysis.
Permalink Reply by Katerina Gasset on March 2, 2010 at 9:35pm
You can give it a shot. We do non hardship short sales. BofA Helocs on non hardships will want a cash contribution or a promissory note for a portion ( depending on who owns the note)- which is way better than foreclosure.
If you get a buyer with a sad story of why they need to move in, like they have to move out of house with chinese dry wall - you can sometimes get those through as well.
Permalink Reply by Katerina Gasset on March 2, 2010 at 9:40pm
Financial analysis is one of the biggest ways we have been able to close on over 98% of all our short sale listings. The financial analysis is the key to preparing the seller to what is going to be asked of him from the lenders. You do need to know this part as this part because you need to know before you take a listing how committed the seller is to the short sale. I see so many agents not get to closing because the deals blow up in their faces because they did not do their due diligence and get those tough financial questions answered and analyzed. Of course, the final decision is up to the short sale lender as to what they want to net and who they will accept but we just got a short sale deal approved where the grandparents are being allowed to buy the house as a short sale from their kids, so their kids can stay in the house. We were able to put a package together with the financials and all the whole story to make our negotiations strong.
If you don't understand your sellers' position, how in the world can you negotiate in their behalf?
Permalink Reply by Scott R. Fuller on March 3, 2010 at 3:46am
Thanks Katerina, and I agree with you 100% on the financial analysis - or analysis otherwise. It is never wise to just take a listing and not have researched and informed the client as to what the expectation is for them. And yes this allows us to have a plan of action with our seller to make everyone more successful.

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