Replies to This Discussion

Permalink Reply by Steele V. Propp on January 22, 2010 at 5:24am

You can request it. It may or may not be removed. You will need to really show that the buyer can not afford it and this will kill the deal.

Understand that this is becoming more normal and it has existed with REO properties for a long time. These lenders are calculating their net dollars very closely. Every day delay costs them money. So it is not unusual for them to want to recoup these losses.

But I have found that if you can show a reason not to charge, most of the time it will be removed or at least cut down. Now I hate to mention this but in order to hold the deal together perhaps you and the other agent might want to be of help? Something to consider in the worst case scenario.

Good luck on this and keep us updated with the results.

Steele

Permalink Reply by Keji Ogunleye on January 22, 2010 at 5:27am

Thanks Much Steele. The agent already contribute to HOA so another contribution will be like doing this deal as pro bono...

Thanks much

Permalink Reply by Steele V. Propp on January 22, 2010 at 5:30am

Curious as to what they are charging per day and how long a delay are you looking at. And when asking for the removal I would make sure the lender knows you are already contributing to this closing and the well is dry.

Good luck.

Steele

Keji Iuyomade said:

Thanks Much Steele. The agent already contribute to HOA so another contribution will be like doing this deal as pro bono...

Thanks much

Permalink Reply by Keji Ogunleye on January 22, 2010 at 5:35am

They are charging $71 per day- About $2500 extra .


Steele V. Propp said:

Curious as to what they are charging per day and how long a delay are you looking at. And when asking for the removal I would make sure the lender knows you are already contributing to this closing and the well is dry.

Good luck.

Steele

Keji Iuyomade said:

Thanks Much Steele. The agent already contribute to HOA so another contribution will be like doing this deal as pro bono...

Thanks much

Permalink Reply by Steele V. Propp on January 22, 2010 at 5:45am

The per diem isn't too bad per my own experience. Usually it is about $100 a day.

I think the stumbling block is that this is a some 35 days delay (if my math is good). It is easily $2,500 in costs to them. Actually it may even be costing them a bit more.

A month's delay is a pretty big deal when it comes to approved short sales (and REOs for that matter). I have been able to sweet talk lenders into waiving a week or so. And getting fees cut in half for a 2 week delay, but 4.5 weeks...

Have a good logical argument ready for the lender. Be cooperative as possible, but strong.

You have your work cut out for you. Been there and it's no fun.

Best wishes,

Steele

Permalink Reply by Jeff Payne on January 22, 2010 at 5:51am

What is the reason for the delay? Lender? Title? If it is a lender delay, have the lender write a letter stating why there is a delay. They will most likely accept it but keep in mind they do not like to extend more than one time.

Permalink Reply by Steele V. Propp on January 22, 2010 at 6:12am

If it is the fault of the new lender as Jeff asks, maybe that loan officer might be able to help.

Yes, I know that is an evil thought.

Permalink Reply by Jeff Payne on January 22, 2010 at 6:16am

The biggest problem that I see is that we are lucky to get a 45 closing approval for a short sale, getting another 35 days is really tough. I too am curious of the delay. Does the seller have a Fannie for Freddie loan?

Permalink Reply by Thomas McCombs on January 23, 2010 at 2:26am

As long as buyers are willing to agree to this per diem without a reciprocal arrangement -- that is the bank will pay that same per diem if the bank causes the delay -- the banks will continue to require this.
If your buyer is not willing or able to bring more money, just advise the bank and be ready to move on to another house. You just might be surprised that the bank agrees to forgo this, but don't count on it.

Permalink Reply by Steele V. Propp on January 23, 2010 at 3:03am

Nice thought. Have tried to use this reasoning for 18 years in corporate and REO housing. Sadly, it will probably always be one way. But the typical argument is that a delay is costing the lender money regardless of whose fault. So asking the bank for a per diem is a double punishment. Asking a buyer who causes a delay is just for breaking even. For what it is worth...

Actually we are told the ultimate reason for the per diem is to make sure the buying side is ready on time. As I mentioned before usually a few day delay is not charged.

A month is a different story.

Thomas McCombs said:

As long as buyers are willing to agree to this per diem without a reciprocal arrangement -- that is the bank will pay that same per diem if the bank causes the delay -- the banks will continue to require this.
If your buyer is not willing or able to bring more money, just advise the bank and be ready to move on to another house. You just might be surprised that the bank agrees to forgo this, but don't count on it.

Permalink Reply by Lynn Pineda on January 23, 2010 at 5:28pm

Keji, just this past Friday I had to request a closing extension for a Buyer. They told me that there would be a per diem late charge and I simply asked for the charge to be waived as the extension was due to no fault of the Buyer. Within minutes they waived the per diem late charges. Good luck.