BOA Short sale woes

I am in process of purchasing a short sale property in Washington County, OR.


The listing price was for $279k. We first offered $270k for the house. The bank countered it asking for $290k. After a series of negotiation all parties were happy at the original asking price of $279k and the seller would pay $4k in promissory note
Series of events:
12/15/2010 – Offer delivered to the seller $270k
12/21/2010 – Seller signed offer delivered to the bank
12/28/2010 – Communication from Equator asking for details like DOB, first 5 of SSN, phone#
1/11/2011 – Communication from the bank saying first valuation was complete and process can move forward
1/12/2011 – BOA countered the offer asking for $290k
1/15/2011 – We offered $273k for the house
1/24/2011 – Counter from bank asking us to increase our offer by $8k and $10k from seller – we offered the asking price of $279k
2/8/2011 – third party approval on the transaction. Initial closing on 2/24/2011 which we got postponed to 3/28/2011
3/15/2011 – BofA extended the closing to 4/30/2011
Since we had third party approvals, our agent suggested that we move forward with inspections and appraisals of the property. We also removed our offers from other short sales on which we had put offer on. We have our escrow account open with earnest money deposited.


Now on March 3rd the listing agent contacted us asking to put everything on hold. The bank was asking for more money from the seller. As per the sellers agent they are also very frustrated with bank coming up asking for money over and over again. They are also willing to let the home foreclosed. There is no further communication from the negotiator or the bank so far. We were notified by the negotiator on 3/15 that the bank has extended the closing to 4/30/2011. The listing agent says the status on Equator website is “File under Review”.


Is it typical to expect such kind of a behavior from the bank in case of a short sale? Our agent is trying to convince the listing agent to get a written approval from BOA. Is there something I can do to expedite the process?


Best Regards,
Nevil

Views: 352

Replies to This Discussion

Permalink Reply by Nevil Shah on March 25, 2011 at 7:08am

There were negotiations going on between the seller and investor and the investors are not settling on anything less than $60,000 on a promissory note.

The sellers are thinking of giving up and the listing agent has sent me "Mutual Release and Termination of Earnest money agreement" so that I can get back my earnest money. If I sign this agreement, that would give the seller to market the house to get more offers on the property.

We really like the house and it has appraised to 18% higher than what I had offered. I have suggested our agent to gt together with the listing agent so that we can meet the seller and find out what their position is to meet investors demand. I can raise my offer by ~10k and if they can come up with some money, we might be able to come up with something to satisfy investor needs.

I do not want to let this house go. Any other suggestions how I can approach this?

 

Thanks a lot for your inputs. You guys are doing a great job educating home buyers like me.

 

 

Permalink Reply by john on March 25, 2011 at 11:03pm
thank you, Bryan!  I found it.  

Bryant Tutas said:
John. NOD are public records. Just log on to the Public records section of your counties website. It will all be there. Or go to the court house and ask for the records department.

john said:
How can one find out if Notices of Default or Notice of Trustee sale has been filed?   Can one look online?

Dianne Slutsky said:

Tracy has give you good advice and maybe your Congressman's office can help.  As to the possible foreclosure question, yes the bank could foreclose in the middle of the short sale transaction.  You need to know if a Notice of Default and/or Notice of Trustee sale has been filed on the property.  Your agent should be able to obtain that information.  If those things have happened, this property could slip through and the investor could allow the foreclosure which will quickly end your ability to purchase it as a short sale.  Lately, the banks have not been as willing to delay foreclosures so you need to know where the seller stands in that process.  Good luck!

 

 

Permalink Reply by Nevil Shah on May 19, 2011 at 5:15am

We submitted a higher offer on the house in the end of March. After that we have had no communication with the bank. The sellers agent claims that he has tried to get response from the bank without much success.

As the buyer what I can do is very limited. It has been about 2 months with no communication from the bank.

Any suggestions on what I could do to get things moving would help.

 

Thanks,

Nevil

Permalink Reply by Nevil Shah on May 19, 2011 at 7:02am

Thanks for the input Harry.

I just got an update from the sellers agent. He said the bank will no attempt to look at anything till the sellers try a loan modification. The sellers on the other hand are not willing to do so. They just want to get rid of the property. They have even moved out of that place!

 

Seems to me like a wait game till the bank comes to senses and decides to do something about it.

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