Replies to This Discussion

Permalink Reply by Christy Brock on September 9, 2011 at 9:03am

I have had success with BofA, Wells and GMAC in getting the price reduced either with an appraisal or reports showing condition.  Just submit the appraisal along with an Addendum to reduce the price and a new HUD.

Permalink Reply by Arlene Garcia Hanner on September 9, 2011 at 9:16am

Greetings Karyn,

 

I have had success with Bank of America as well, in reducing the approved price to the appraised amount.  The original price was $260k and it was dropped to $240k. 

 

I did the same as Christy.  I sent in the appraisal with the revised HUD1 and the addendum.  It took a couple of weeks but it got approved. 

 

Arlene

Permalink Reply by Bryant Tutas on September 9, 2011 at 12:55pm

I have had BofA lower their price after approval several times in the past. Just submit the appraisal and plead you case.

Permalink Reply by Eileen Quimpo on September 19, 2011 at 12:57pm

I have a question; are you saying to "submit your appraisal" - meaning, go out & pay for an appraisal? Because I am in the same situation, BofA sent LandSafe to do the appraisal, but they are saying FMV - when FMV is for a house that is fixed up & move in ready.  My listing will cost someone $80K plus to get to FMV. 

LandSafe will not provide me a copy of their appraisal, what I can do is show them the comps & plead my case?

 

 

Permalink Reply by Arlene Garcia Hanner on September 22, 2011 at 4:57am

Eileen,

I was referencing the appraisal the buyer paid for to secure their financing.  The buyer's agent should forward that to you.  It is that appraisal that you submit to Bank of America.

The way it happens is like this:

    Listing agent submits short sale package with buyer's offer (for example at $350,000)

    Seller financials / hardship reviewed, Short sale negotiator obtains BPO or Appraiser

    Short sale approval arrives at $350,000

    Buyers lender sends their appraiser, value comes in at $320,000

    Buyers agent sends listing agent their appraisal

    Listing agent "submits appraisal" with revised HUD 1, fully executed addendum to contract at $320,000 to the short sale lender

    Short sale approval arrives at $320,000

The above is a simplified version of what is happening.  It sounds like you are still in the negotiation stages before short sale approval on the file.  During this stage, I would forward market comps that reflect the buyer's offer submitted along with pictures of the condition of your listing and estimates for repairs.

Good luck,

Arlene

 

Permalink Reply by Brent Innocenzi on September 22, 2011 at 2:21am

It is much easier to get BofA to lower their price post approval, especially when you have an appraisal to back up your value. You will need to submit the buyer's appraisal, price change addendum, and updated HUD-1 to the negotiator. I personally, unless I already have escalated earlier and have a good negotiator, would escalate the file and not even bother going to the negotiator.

Permalink Reply by Kathleen Lordbock on October 2, 2011 at 2:19am

 I am the listing agent for a BOA:

BOA countered $14,000 higher than offer, but buyer had already had an appraisal done by his  FHA lender, which came in at $105,000. Buyer refused to counter at all and walked, planning to make an offer on a REO.

I send the appraisal in to the negotiator anyway to show that the BPO they had done must have been too high (or BOA was dreaming). What are my chances to get a $105000 new offer accepted and not the $110,000 they are asking for???

I relisted at $112,500 to have a little room- no one pays asking price here on anything.