Replies to This Discussion

Permalink Reply by Kevin - Greenville, SC on February 28, 2012 at 4:48pm

Yes, call me 864-485-9283.

Most people don't realize this little caveat - In addition to the standard four-month period to market HUD properties sold under a pre-foreclosure sale, Tier 1 lenders receive an automatic extension of two extra months to market those properties. Bank of America, Wells Fargo and Chase along with some others are currently Tier 1 lenders. 

Permalink Reply by Donna Bigda on February 28, 2012 at 5:05pm

Thanks Kevin!  Can't tell you how much I appreciate your taking the time to call me and explain the program to me in further detail. 

Permalink Reply by Celeste ODea on February 29, 2012 at 2:16am

Donna, is the property valued at the right price?  If not, I suggest that you do your comps and property statistics to substantiate what you think the actual value is, submit it to the bank, and ask the bank to request a Variance from HUD for the price differential.  Make sure you have good info.  It can work, because I was able to get a Variance for $40,000 from HUD on one of my listings because I proved it was not the right price.  In fact, BOA may send you the appraisal (or at least request it from them) and then you can really pick it apart.  Their value is not based on a BPO but an actual appraisal.  I also concur with Kevin.  The bank can extend it 60 days, so you really need to get working on the numbers.  Make it happen!  You can do it! 

Permalink Reply by Donna Bigda on February 29, 2012 at 9:47am

Thanks so much Celeste!  I'm working on it and will be covering all the bases to make this happen!  The property is a condo listed at the bank's price of $60,000.  Can probably drop price another $5,000 but tough part is there are not enough recent comps in the past 6 months.  It's not an FHA approved complex so the new buyer has to either be all cash or have considerable down payment to purchase which is one of the reasons I'm having such a hard time getting it sold.  The unit is not in the best condition so I plan on letting BofA know what repairs are needed to help to substantiate a lower value.

Permalink Reply by Celeste ODea on February 29, 2012 at 10:06am

Donna, the first thing we do is get an appraisal and have a home inspection on our listings to use in instances just like this.  Also, stress the FHA Certification.  Four of our condo listings all lost their Certification and we really pushed that point across to FHA. Cash, VA, and some lenders will do FHA non-insurable loans for these condos.  You might want to check around for one and then offer that person's services in your MLS.  Do you know how to do an absorption rate analysis?  Include a bunch of statistics, e.g. % of distressed properties in the subdivision, zip code area, and within a 1-mile radius.  If you bombard FHA with those stats, you will be doing everyone a favor.  You can even prepare a BPO and include it.  Let me know if you need any info.

Permalink Reply by Donna Bigda on March 1, 2012 at 1:03pm

Thanks Celeste.  I received a message last night by Steve from the Bank of America  social media team who saw my posting and concern.  I just spoke to him a couple of minutes ago and he will be forwarding the information about my client's property to the negotiator so we can move forward in continuing to market the property for sale.  It's good to know that Bank of America has a team of people who are keeping an eye out for the issues and problems we come up against and reaching out to us to try and resolve them.

Permalink Reply by Kevin - Greenville, SC on February 29, 2012 at 6:26pm

https://entp.hud.gov/idapp/html/condlook.cfm

Permalink Reply by Donna Bigda on March 1, 2012 at 1:04pm

Thanks so much Kevin!