Counter Received from BofA
I received a rather nice counter from BofA. They kept the price the same, moved up the closing date. NO promissory note. Asked for $1500 cash contribution. Questions I have are: can the buyer agree to pay the $1500 by increasing the price? BofA will not agree to pay state transfer tax listed in Other Expenses but agreed to pay County Transfer Tax = to same amount. We don't have county transfer tax. So is it safe to say it is a wash? That they just didn't like where I put the transfer tax charge in Equator? Also, there are charges little charges like recording fees they didn't agree to pay for at all but they agreed to pay $500 in HOA transfer fees. There is NO homeowners association attached to this property. Can I subtract $500 from the $1500 and omit the $500 in HOA dues? None of the charges I put on the HUD regarding prorations were even mentioned on the counter. I spoke with my awesome negioator he gave me clues as to what BofA will pay for and not. They do not pay for water only if there is a lien. There is no lien but back water charges. They will pay for taxes, back taxes. They will pay up to $750 for title (I think I heard him right) or $1500 for attorney fees.Currently title is only $420 could I just up the charge to include the recording fees?
Basically I want to know based on past experiences what can I or can't I do? What seems to be the limit on what BofA is willing to accept?
Also, there are exterior code compliance charges of $90. Should I expect BofA to reject to pay for that item at closing too?
Replies to This Discussion
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Permalink Reply by Celeste ODea on
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Hi Jennifer - I recently received 3 counters from BOA with the same sales price with other minor changes. Maybe they're really trying to work with us now... Anyway,
1. For the cash contribution, counter $0 and provide an updated hardship letter or financial analysis indicating that the seller is unable to pay the contribution. You could try increasing the sales price by $1,500 and agree to the $1,500 contribution and see what happens. Also, go to #7 if you're increasing the sales price.
2. List your County and State transfer and recordation taxes all together under County taxes and they will pay them. Based on what you said, it sounds like yours is a wash. When the State and County taxes are put in two separate places, they will only pay the County transfers and not the State transfers, so it's best to lump it all together under County taxes.
3. The negotiator obviously made a mistake about the HOA fees, and may come back later to delete it. You wil not be able to subtract the $500 from the $1500 and omit the HOA. Ask for clarification of where the $500 was suppose to go.
4. Add the recording fee, wire fee, and doc prep to the settlement fee. That's correct. The max they will pay the settlement fee up to $750. I wasn't aware of their agreeing to pay an attorney fee up to $1,500, so that's good news, but they will not pay a fee to a negotiator.
5. Water charges - they will not pay back water charges unless the property was previously in the bank's name. We try and get the owner to make sure the water bill is $0. They won't allow for a water escrow either, or the buyer may have to pay it if the seller is unable to.
6. We don't include any pro-rations on our offers especially if they are a credit to the bank. We want worst case scenarios...
7. Is the buyer asking for closing help? The max they will pay is 3% of the sales price. If the buyer is not asking for closing help, you may want to consider countering the sales price up 3%, asking for 3% closing, and having the buyer pay the code compliance charges. You can try asking the bank to pay that, but they may not - depends on the investor in what they will accept.
Let me know what happens and, good luck!
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Permalink Reply by Jennifer Luna SFR on
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Thanks Celeste! Will do! I think this has been fairly simple (working with BofA). I even had the negoiator assigned to my file call me up because I didn't respond to his email fast enough. That amazed me! I have a direct number to him. He answers the phone and answers my email. Did you close those three yet? By the way, lovely name. My daughter's middle name is Celeste.
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Permalink Reply by Mary Wilcox on
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WOW WOW WOW Jennifer! You have just experienced a small miracle! BOA Negotiator answering his phone. YAY! LOL On a more serious note Ms. ODea has given you some great, solid advice.
Thanks Ms. ODea for taking the extra time & being so thorough!
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Mary, I feel fortunate because things are going so smoothly. Also, just so others have an idea how busy these negoiators are...the one assigned to me said he has 356 files. They are given 48 hours to respond to every email. I called him asking for a follow up to my question I emailed about the counter offer around 36 hours. He answered my question, told me about the 48 hour window and later that day he did respond back to my email. Between what was said by the negoiator and Celeste plus you backing up Celeste I feel very confident this will be a solid counter that I make and closing will be smooth. Thank You.
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Jennifer, I was named after my grandfather who was "Celestine." I always envisioned Celestine as the female version and Celeste the male version but, either way, I like the name too! I love working with BOA. These three offers that were just accepted close in June - actually earlier than what we originally planned (July on all three of them). I have my HUD-1s prepared for 90 days out and then close in 60 days - you look quite impressive to the bank when they get a few dollars more and an earlier closing. Some tricks to the trade. All my BOA listings close within 60 days from when we submit the contract.
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