Replies to This Discussion

Permalink Reply by joe beauchamp on October 23, 2012 at 4:05pm

Either Freddie or insane BofA is clearly playing games - this is not just you. I had a 1st counter of $320K on a $210K offer which is probably right on the mark. Put in a BPO dispute which included a better property with finished basement sold at $220K. Instead of accepting, BofA did another BPO and countered the next $210K buyer (previous got upset and walked) at $275K. The top of that market, much better properties, lower taxes is $286K. This one with mold, disrepair, unfinished basement, a few $K more per year taxes, radon that gives 10 times possibility of lung cancer at its level - all worse situations than the now "too old" $220K finished basement place. Really? These agents can look at the same MLS and come up with prices that divergent in a month? Yeah, right.

Assuming that you know your business and close to the real value of the property (don't be crazy and believe that banks know values), you should ask the negotiator for a BPO dispute form. It takes 3 sold comps w/in 30 or 60 days, follow the directions - they built in "gotcha's" to kill your dispute - like if you compare properties, they will throw it out - read the directions. However, no guarantees - in my case, they simply did another BPO - then when we finally got to agreeing in a counter, they did a service release to Nationstar and blew it away - starting over at Nationstar now.

Permalink Reply by Tara Samney on October 23, 2012 at 5:14pm

I'm used to B of A being crazy high on suggested list prices.  In almost 6 months we only got this one offer.  What is confusing me is per their Short Sale Processing System booklet there will be no more than 2 counteroffers before going to investor.  Their final counter is close to the offer- although their first counter was way high.  I don't understand this- does it mean there is a good chance it will get investor approval (is in line with market) or do they just give up on the second counter and take it to investor anyway?  I want to believe it means we have a good shot- just not sure what to make of the disparity of the range in the counters.

Permalink Reply by joe beauchamp on October 23, 2012 at 6:14pm

Freddie and FNMA seem to be living with the "greater fool" theory - bumping up numbers and thinking stupid buyers will simply throw extra money at them because they demand it. I'd be curious to see the numbers on their BPO's vs. counters vs. final close on a deal vs. final value when they create foreclosure and finally sell after REO (and carrying costs). My guess is that they drive away a lot of good buyers and average less value in the end. There is your insane first number. It is clear that Freddie tells the negotiator to ask for crazy things w/o any justification. Beyond that, it comes down to 3 numbers that the negotiator calculates: above one, the negotiator can OK it, below another, the negotiator MUST deny it, in between the negotiator must send it to the investor to "negotiate". So, you are in the 1st or 2nd category. First category is good, second category is usually bad.