Replies to This Discussion

Permalink Reply by Vicki on March 17, 2010 at 11:33am

Why is it taking so long for this letter? Does it usually take long for the letter? I was under the assumption that they send it out the day that they give the verbal approval.

Permalink Reply by Nicole Borsey on March 17, 2010 at 11:36am

you definitely need the written approval to close. there are all sorts of things you need to confirm with the final negotiator prior to close. The closing date was just probably generated without confirming day of week. That date is the "last day you can close" ie, the expiration of the approval. you do not HAVE to close that day. If you already had a written approval, i would say leave it alone. since you are still waiting for it, bring it to the negotiators attention and try to squeeze another day in there buy changing it to the 26th

that was a VERY fast turn around from BOA, so don't worry, just keep calling for the written approval. Tell the negotiator, the buyer's attorney will not let the buyer's lender move forward without it.

:) good luck

Nicole Borsey
http://www.NicoleHelps.com
http://thepropnet.com

Permalink Reply by Bryant Tutas on March 17, 2010 at 12:21pm

Vicki, Unfortunately without a written approval you have nothing. I've had verbal approval several times only to wait many weeks for the written and once I finally received it the price and terms had been changed.

It does however sound like your deal is moving right along. Just wait o see it in writing before moving forward on your end. I truly hope this all works out for you.

Permalink Reply by Vicki on March 17, 2010 at 12:21pm

What do you mean by that?

Permalink Reply by Jeff Jewell on March 17, 2010 at 12:39pm

A verbal approval means nothing. I have had "Verbal" approvals before that get changed after you get the buyer eager to close, then the "negotiator" will change the approval, saying that he agreed to your price and terms, but that his superior needs more. I liken it to bait and switch. The negotiator tells you that he "approves" the price, and sends it for confirmation. They get your machine rolling toward closing, then they come back and tell you they need a bit more. Many times the buyer will pony up the extra figuring they have all this time/energy invested in the deal already, that for a few thousand more they will go ahead and close. My advise - Get it in writing.

Permalink Reply by Vicki on March 18, 2010 at 7:55am

Today's confusion.
We aren't sure who it is we have been dealing with now. Our agent stated that she thinks that the person we have been talking to is a relative of the seller. (Does this usually happen?)
He says that his job is to collect data from all parties involved and relay it to the bank. Who usually does this?
Look at the attached e-mail.


Hello


1) Who do I represent in this transaction?

Answer: Technically I was hired by the seller's realtor Paul Reiss but, I don't represent any one party in this transaction. My job is to collect data from all parties, relay this information to the lender and ensure a smooth short sale transaction.

2) Am I a family member of the seller?

Answer: yes, he is my Uncle. I've been consulting with him on the best way to mitigate his losses since the beginning of his financial hardship.

If you have any additional questions please let me know. I hope all is well.

L. Lopez



Does this sound fishy to any of you or do you believe he works for countrywide?? If so why do we STILL not have written approval?

Permalink Reply by Gail Oleaga on March 18, 2010 at 10:03am

Are you a buyre or an agent? Is the Seller in your note BOA or the homeowner?

Gail Oleaga Realtor Phoenix, Az

Permalink Reply by Vicki on March 18, 2010 at 10:36am

We are the buyer.
Does our attorney have the right to call BoA directly?

Gail Oleaga said:

Are you a buyre or an agent? Is the Seller in your note BOA or the homeowner?

Gail Oleaga Realtor Phoenix, Az

Permalink Reply by Sam Purtle on March 18, 2010 at 2:45pm

Okay - I am tired of erroneous information being shared on this website .....

1. The seller is being represented by Paul Reiss. Does he have the property listed on the MLS? The reason being that BofA requires that the property be listed.
2. You placed an offer on 1/25/2010 through a licensed real estate agent representing the seller or yourself? I am assuming your own agent.
3. The seller received a verbal offer of approval through BofA? Is the seller loan backed by the Federal Government? in other word is it a FHA or VA loan? Do you mean L. Lopez received this or Paul Reiss?
4. If it not a FHA or VA loan then the short sale has to be processed through the Equator (formerly REO/Trans) system
5. The equator system will put the short sale into what is known as phases (generic, I, II and III)
6. Somewhere in these phases the Equator system will either accept, reject or counter the offer.
7. In your case the Seller is indicating that acceptance has been granted which is a good thing as the whole equator system has been bypassed or they are using Equator and simply misread a counter offer as acceptance.
8. A short sale approval letter has to be issued. This is also known as the short sale demand letter.
9. The closing company (escrow and title or attorney) prepares a final HUD-1 which outlines the financials on the transaction
10. This final HUD-1 is sent to BofA for approval and once approved the money is wired to a specific BofA account for the investor (Fannie Mae, Freddie Mac, Wall Street Fund, etc.).
11. The closing company (escrow and title or attorney) records the deed between the seller and purchaser.
12. You are the proud owner of a new home

Specific to your deal - the sellers agent has lost control of this deal to the sellers nephew (L. Lopez)
The whole thing seems a little fishy. If I were you, I would have your broker draft an addendum indicating that he or she will take over the short sale negotiations or a non affiliated 3rd party negotiator be utilized. The agent will need complete access to all of the sellers documentation as well as the authority to do so (3rd party authorization).

Bottom line is I am going to have to bash a fellow real estate professional for not taking on the responsibilty to adequately represent his/her client. You may have a case for misrepresentation, lack of fiduciary duty, etc. and I would think seriously about letting your states real estate licensing body know what is going on.

Hope I cleared out a bunch of the confusing issues you are having and I hope you see the approval letter soon. I always let the purchasers agent know that it is not an overnight process and that the whole transaction could take several months. Perhaps even many many months.

Permalink Reply by Vicki on March 19, 2010 at 4:35am

Thank you so much! This information was very helpful. I e-mailed L. Lopez and asked him if the information is in the equator system.
We also asked him to fax over written authorization so we can speak directly to BoA.
Our agent is away but we did reach her, she is going to call the sellers agent and find out who exactly is paying L. Lopez since the sellers agent hired him.


Sam Purtle said:

Okay - I am tired of erroneous information being shared on this website .....

1. The seller is being represented by Paul Reiss. Does he have the property listed on the MLS? The reason being that BofA requires that the property be listed.
2. You placed an offer on 1/25/2010 through a licensed real estate agent representing the seller or yourself? I am assuming your own agent.
3. The seller received a verbal offer of approval through BofA? Is the seller loan backed by the Federal Government? in other word is it a FHA or VA loan? Do you mean L. Lopez received this or Paul Reiss?
4. If it not a FHA or VA loan then the short sale has to be processed through the Equator (formerly REO/Trans) system
5. The equator system will put the short sale into what is known as phases (generic, I, II and III)
6. Somewhere in these phases the Equator system will either accept, reject or counter the offer.
7. In your case the Seller is indicating that acceptance has been granted which is a good thing as the whole equator system has been bypassed or they are using Equator and simply misread a counter offer as acceptance.
8. A short sale approval letter has to be issued. This is also known as the short sale demand letter.
9. The closing company (escrow and title or attorney) prepares a final HUD-1 which outlines the financials on the transaction
10. This final HUD-1 is sent to BofA for approval and once approved the money is wired to a specific BofA account for the investor (Fannie Mae, Freddie Mac, Wall Street Fund, etc.).
11. The closing company (escrow and title or attorney) records the deed between the seller and purchaser.
12. You are the proud owner of a new home

Specific to your deal - the sellers agent has lost control of this deal to the sellers nephew (L. Lopez)
The whole thing seems a little fishy. If I were you, I would have your broker draft an addendum indicating that he or she will take over the short sale negotiations or a non affiliated 3rd party negotiator be utilized. The agent will need complete access to all of the sellers documentation as well as the authority to do so (3rd party authorization).

Bottom line is I am going to have to bash a fellow real estate professional for not taking on the responsibilty to adequately represent his/her client. You may have a case for misrepresentation, lack of fiduciary duty, etc. and I would think seriously about letting your states real estate licensing body know what is going on.

Hope I cleared out a bunch of the confusing issues you are having and I hope you see the approval letter soon. I always let the purchasers agent know that it is not an overnight process and that the whole transaction could take several months. Perhaps even many many months.