Replies to This Discussion

Permalink Reply by Katerina Gasset on November 12, 2010 at 5:59pm

Yea, we noticed the auto reverting to 5% too! We just go in and change it to 6%.
Yes, they do counter most offers but not all. It depends on who they are servicing the notes for.

Permalink Reply by Ralph Gorgoglione on November 13, 2010 at 5:03am

I've countered out the cash contribution and they've come back with half the amount they requested.

And by the way, thanks for letting me know about the auto-populate of the commission percentage.

That really pisses me off. Here I was thinking that was a decision made by the investor on what they will pay!

Permalink Reply by Kimberley Kelly on November 14, 2010 at 4:20am

I always counter at 6%, but if they hold both the notes, they counter back at "Investor will only pay 5% commission" They are also very sneaky..ask for Cash to 1st, note for 2nd, then counter back at MORE for 2nd payoff once you get an agreement. There is no acceptance until that final Demand Letter.

Permalink Reply by James Lee on November 14, 2010 at 12:44pm

I am working a situation similar where bofa is asking the seller to contribute about $25,000 in a prom not since they will not be able to come up with a cash contribution. I escalated the situation to a manager and had a long talk why bofa believed there should be a prom note. The manager looked in depth into the bank statements of the borrower and asked questions such as "well if the seller can get massages every month they should be able to contribute something." I wish there was a better way to answer your question on how to get out of it, but I stand firm that the seller cannot contribute and provide a in depth income/expense report proving it. GOOD LUCK!

Permalink Reply by joe beauchamp on November 17, 2010 at 11:55am

James is right on the nose. Frequently, the negotiator hasn't bothered to look at the financials at all. They have been told to get as much $$ as possible - claim MI wants it, sometimes the investor. These usually fold immediately.
I do the same - ask why they think the seller can afford whatever it is. I might get a real answer - usually not. With a real answer, I'll look into it (well, she just bought a car and is making payments that are more than they would be for us, a 2nd loan) or (there is a lot of cash that goes into and out of that bank account). I ask the seller and find out what is going on.

But, usually, it is some "well, MI wants it" and I point out that the bank account has been overdrawn for 2 months, the seller is living paycheck to paycheck, has been putting the rest of her savings into bills, is totally unable to bring cash to the table or live and make monthly payments, too.

That is often enough to do it. Occasionally, the numbers are so far apart that the investor/MI doesn't care and you are just stuck.