Replies to This Discussion

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on March 11, 2012 at 3:32am

Darlene -

 

I'll try to answer some of your issues - but please understand 1) I am not an attorney and this is merely observation and not legal advice and 2) I am not a Florida Real Estate Broker.

See my thoughts below in BOLD

 

Mr. and Mrs. Seller - in bankruptcy (Has the BK been discharged?)  2009 tax lien certificate and condo/HOA lien on property.  The sellers live in another house within the same community.

Mr. and Mrs. Renter - Renting seller's property which they tried to purchase through short sale process and had BofA approval letter but they could not complete the sale.  Renters are good friends with sellers. (First problem starts here - do you really think these renters / friends want to move out? - they may have very low rent since they are friends) 

Dec. 15, 2011 - Our agent came to us with the above situation as she knew the house was what we were looking for. (Is YOUR agent also the Listing Agent?)

 

Dec. 17th - We submitted an offer for the amount BofA approved for the renters/buyers with closing on 1/10/12 as that was the closing deadline on the approval letter.  (just because the bank approved one transaction doesn't mean they will approve the same terms again - plus they are pushing to see if you will offer more - can you raise your offer?)

 

Jan. 12th - We were notified that BofA wants another appraisal. (The prior appraisal is likely out of date / more than 90 days old)

 

1/25 or 1/26 - We were notified the negotiator wants an offer closer to "Fair Market Value" and listed FMV at $135,000 or more than 50% over our offer and previously approved amount.  (Obviously the new apprisal came in much higher than the prior) the house is not worth near this declared FMV (your opinion).  We asked to see the appraisal hoping our agent and we could figure out what was used as comps as both agents and the attorneys office was stunned by the FMV since it was so out of line.  BofA would not release the appraisal. (No bank will give you their appraisal - they paid for it) 

2/3 - Listing agent filed a dispute. 

 

Five weeks later - we do not have a resolution nor decision from the bank.  We thought maybe they would  want another appraisal but we have not heard what they are going to do.

 

3/8 - Our condo/HOA made a second status request and said their attorney is pushing for foreclosure of the property.

 

Our condo/HOA has taken possession of at least two other properties.  They rent the properties to recover the back fees.

 

3/8 & 3/9 - During discussions with the listing agent and our agent, it appears the negotiator thinks the file is on someone's desk and is not being worked on because the file has become stigmatized by the dispute and we should do a "hard decline" and start over.  (I agree - see my next comment)  An assistant at the attorney's office that is involved said that her experience is that if we have not heard anything within 3 weeks, the file is probably lost - it's been five weeks.  (This file is likely being handled in BofA's Bankruptcy Department -  it is a special area of Loss Mitigation and BofA Legal for these cases)

 

Our agent is concerned that if we have to start over with the short sale, our condo/HOA will not wait and will take possession of the house, rendering our contract void and the house will be forced into foreclosure. (Ask yuour agent to have the Listing Agent / Attorney to notify BofA that this is a real possibility - see my comment below) 

We don't know if the bankruptcy situation can preclude the condo/HOA from taking possession.  (Any HOA amounts due at the time the BK was filed were wiped out assuming the BK has been discharged.  Any amounts SINCE the BK discharge are now owed.  It is not likely BofA will pay the past due HOA fees so, are you as the buyer prepared to pay what is now due?)

 

Why is this property so attractive to you?  Is it the price?  It sounds like you already live in this community - are you renting or do you own and this will just be another property in your portfolio assuming you could get it at the low price?

 

Have you seen a Preliminary Title Report?  Are there any other liens on the property such as IRS liens, etc. ? I think this one will be tied up for a while - it could be years.  Also, if the HOA forecloses, it will be "subject to" any superior liens (BofA's mortgage)

 

Best of luck - if you were my client, I'd be looking for a different property for you.....

 

Thom Colby

Broker, Southern California

Permalink Reply by Darlene Durham on March 11, 2012 at 3:53am

Thank you for the quick and insightful comments.

 

We don't know if the BK has been discharged - we didn't know to ask the question.

 

The renters are having a house built outside of the community.  We have been told they are not paying rent as that was part of the BK conditions.  We have met them and they seem very nice.  Their incentive would be to not move from a very nice house with no rent but they seem to have moved past owning the home and are looking forward to their new home (though construction has been delayed).

 

Our agent is not the listing agent.

 

We are prepared to pay the past due condo/HOA dues dependent on the negotiated selling price.

 

The selling price is the primary reason.  We love the one story floorplan and the lot and the price we offered made this seem like a perfect match for us.  Our small community is more limited in the number of one story houses - which we need.  We do own property in this community and live here in the winter.  This house will be our full time retirement home.

 

We have not seen a preliminary title report.  We were told of the two liens mentioned earlier.  That's why we would rather purchase through SS instead of a foreclosure so we can acquire title insurance.

 

I have seen posts about the help desk on Twitter.  I don't have a Twitter account.  Is the Twitter BofA help desk available for buyers or just agents?

 

Thanks again!

 

Darlene

 

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on March 11, 2012 at 4:02am

Darlene -

 

BofA Twitter is typically for agents and Sellers since the bank cannot talk with you about someone else's loan.

 

Get a copy of the Prelim Title Report to see if there are any other liens against the property that someone may have missed or that have been added.  It is not unlilkely for distressed sellers to have an IRS lien as well.

 

Best of luck,

Thom

 

Permalink Reply by Darlene Durham on March 11, 2012 at 4:04am

Thank you very much, Thom.   We'll ask for a Prelim Title Report.

Permalink Reply by Michael Hayley on March 11, 2012 at 8:10am

I agree with Thom's assessment. Run... to another property. 

I try to never get involved when HOA fees are past due. Florida's new Condominium Act makes it fast and easy for condo associations to foreclose, about 4-months. Then they rent it to recover their past-due fees until the 1st forecloses. Mr. Seller, either pay your HOA fees or the odds of closing get too small. 

Permalink Reply by Darlene Durham on March 11, 2012 at 9:01am

Thank you, Michael.   I appreciate your response.

Permalink Reply by Wendy Rulnick on March 11, 2012 at 3:37am

Darlene - I am a Florida real estate broker, but not an attorney. I can tell you that Florida HOA's are indeed foreclosing on condos to rent them out until the senior lien forecloses.  I suggest you have the negotiator, be it the attorney or listing agent, contact the BOFA twitter team to escalate the file.

Permalink Reply by Darlene Durham on March 11, 2012 at 4:09am

Thank you, Wendy.  Our agent is going to hopefully talk to the atty office tomorrow.  We asked that this be escalated to see if we can find out definitively if the file is lost or if just nothing is being done on it.  We don't want to start over if it is not necessary.  We will tell our agent about the Twitter team so she can relay the message to the listing agent/atty office.  The atty office is doing all of the Equator input.

 

Our agent mentioned the condo/HOA wants to see movement in the next two weeks.  My concern is they are shooting for a 4/1 take over.

 

We are cash buyers and can close before the end of the month if we can come to an agreement with the bank.

 

This is an awesome site and I appreciate all your team is doing to help us all out.

Permalink Reply by Darlene Durham on March 11, 2012 at 4:26am

Wendy,

 

Since you are a Florida broker, I hope you don't mind me asking another question.

 

According to the Tax Collector's office, the 2009 tax certificate lien holder can force a sale of the property on 4/1/12.  However, in reading more on the internet, it looks like the bankruptcy precludes the tax certificate lien holder from exercising that right.  Would the same hold true for the condo/HOA?  Can they be stopped from taking possession due to the bankruptcy?

 

Thanks!

Permalink Reply by Wendy Rulnick on March 11, 2012 at 6:12am

Darlene - I don't know, and that is a legal question.

Permalink Reply by Darlene Durham on March 11, 2012 at 9:01am

Thanks, Wendy.  I thought maybe you had encountered this situation before.