Replies to This Discussion

Permalink Reply by Bryant Tutas on May 1, 2010 at 2:43am

Rahul. You can try to dispute the value. Do you have accurate comps that will show their appraisal as being wrong? I don't know the value of the property but an 80k gap makes me wonder how an appraisal can be so far off. Try to make your case and get it into the hands of the negotiator. If they won't listen then you really have no choice but to reprice the property. Price it at the appraised value then do regular price reductions until you get it under contract again. Some times the 2nd time is a charm. Or the 3rd. Or the 4th. Keep pushing.

Permalink Reply by Rahul Aggarwa; on May 1, 2010 at 4:04am

All the properties around have sold around the range of 600,000 or under which is our offer value. The comps are already there with the negotiator. The property was listed at 700,000 for a long time, then reduced twice but in three months the only offer received was 600,000. All this has been communicated but how can they be so unrealistic so as to demand an unfair value. This is a short sale so they need to discount that also.

What options do I have? How much time do I have to reply on equator as I understand that they close the file if no reply is made.

To top it , we have sunday in between!!

Bryant Tutas said:

Rahul. You can try to dispute the value. Do you have accurate comps that will show their appraisal as being wrong? I don't know the value of the property but an 80k gap makes me wonder how an appraisal can be so far off. Try to make your case and get it into the hands of the negotiator. If they won't listen then you really have no choice but to reprice the property. Price it at the appraised value then do regular price reductions until you get it under contract again. Some times the 2nd time is a charm. Or the 3rd. Or the 4th. Keep pushing.

Permalink Reply by Katerina Gasset on May 1, 2010 at 4:14am

We go back and price the house at what the bank's BPO comes in at even when it is ridiculous. We allow it to stay at that wrong price for 30 days, sometimes 60. Then we start to lower it again slowly, 10K at a time every 20 days, then when we get the offer finally- we send in a detailed summary of what has transpired and show the listing history.
Then if 90 days has passed, they have to get a new BPO and hope for an agent who knows what they are doing.

Permalink Reply by Esther M. Camarotte on May 1, 2010 at 4:56am

If you decide to proceed be sure that you have an ironclad appraisal contingency for your buyer. That the buyer can walk if the appraisal does not come in and gets their earnest money back and that the contract is then null and void. The buyer is always protected by the appraisal. I recently had the same thing occur but once my appraisal came back $65K below sales price the bank buckled and gave in.

Permalink Reply by Tim Harrison on May 1, 2010 at 5:08am

The same thing happened to me as a buyer. BOA did a BPO recently and it came back crazy high at $295k. My offer (7 months old) was for $240k. I just got a VA appraisal done Thursday and it was for $235k. I had already accepted their $295k offer just to keep the ball rolling and knowing that the appraisal would come back lower. I was also worried like Rahul seems to be that if I didn't do something quickly they would close out the file so that's another reason why I accepted the $295k offer.

The listing agent will let them know about the appraisal on Monday and hopefully they'll give in like Esther's deal. If not then we'll get senior management involved and try that.

Permalink Reply by Phil M on May 1, 2010 at 5:41am

How do you know the BPO value done by BOA? My understanding is thatthey don'y tell yu that...

Banks does the appraisal only when you go for a loan agreement with them? Can a buyer order a bank apprisal? thx

Permalink Reply by Catherine Gheen on May 1, 2010 at 9:49am

I would suggest pulling the comps off of your escrow company's title profile site, depending on what state you are in California and New York's attorney general's offices have won lawsuits against Bank of America for inflating values. Also you can to to the Appraisal Institute's website for the definition of appraised value and send that to your negotiator and their supervisor. When all else fails I file complaints with the Attorney Generals office as it gets their attention.

Permalink Reply by Tim Harrison on May 1, 2010 at 11:48am

@Phil BOA ordered the BPO which was done by a local realtor. BOA told us what it was ($295k) because that's what they countered us at. I ordered the appraisal through my mortgage broker who ordered it through a VA underwriter. I got the appraisal done to establish FMV and to tell BOA their inflated BPO was BS. One thing to remember is (and BOA should know because they're a lending institution) loans aren't approved with BPOs but they are with appraisals.

@Catherine I'm in California and I tried googling about the AG suing BOA but couldn't find anything. Can you provide a link? Thanks!

Permalink Reply by Catherine Gheen on May 1, 2010 at 4:10pm

If you can give me your email address I can send you a copy of the press release. It is true if the property does not appraise you will be right back to the negotiator.

This link is to bankers online and you can research the topic of appraisals or appraised value.

http://www.bankersonline.com/abcsoup/abcsoup.html

This is the link to Fannie Mae appraisal policies

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0830.pdf








Tim Harrison said:

@Phil BOA ordered the BPO which was done by a local realtor. BOA told us what it was ($295k) because that's what they countered us at. I ordered the appraisal through my mortgage broker who ordered it through a VA underwriter. I got the appraisal done to establish FMV and to tell BOA their inflated BPO was BS. One thing to remember is (and BOA should know because they're a lending institution) loans aren't approved with BPOs but they are with appraisals.

@Catherine I'm in California and I tried googling about the AG suing BOA but couldn't find anything. Can you provide a link? Thanks!

Permalink Reply by Tim Harrison on May 1, 2010 at 4:50pm

Thanks Catherine! My email is [email protected]

Permalink Reply by Sherry Wheeler on May 1, 2010 at 10:19pm

I just contested an appraisal by sending in pictures on my listing and full lisiting info on comps. The appraiser called me and said he just emailed BoA and agreed with my FMV. Actually he had written on the appraisal that because of deferred maintenance it should sell at this price. I questioned this as well and was told they use the form portion as the baseline. They don't pay any attention to comments on the appraisal - only what is filled in the blanks on the form and there isn't a line for adjustments such as this. I've been assigned a customer advocate who has postponed the sale date and tells me she is pushing this short sale thru. I sure hope so.

Permalink Reply by Esther M. Camarotte on May 2, 2010 at 2:06am

Hey Guys, you need to remember you are dealing with clerks. Regardless of what state you are working in remember these negotiators are clerks. How could anyone know every contract in every state? They can't that is why the listing agent is critical in being skilled in this short sale process. We have to contest what they do. I have always sent over contracts that are not fully executed because I know the person looking at my contract is not looking at the detail, but I want to proceed so that I don't loose time in getting the ball rolling. These people are not detail oriented. As for the listing agents allowing their sellers to have to pay their property taxes, shame on them. This is the only lien that takes priority to the trust/mortgage lien. THEY HAVE TO PAY THE PROPERTY TAXES OR THEY CAN'T SELL THE PROPERTY. Remember BPOs are done by other agents and they sometimes come from areas that are unfamiliar with the location of your listing. That also goes for appraisers. So agents do your due diligence on comparables and climb up the manager chain until you find someone who has a brain and understand the process.

I have caught BoA and many other banks in blatant lies because they think we are stupid. So when they tell you the investor won't allow it don't believe it.

Hope that helps.

• ‹ Previous
• 1
• 2
• Next ›
• Page