How often do BofA negotiators go beyond making a second counter-offer?
On a current pending short sale (BofA, servicer; Fanny, first; Bank of New York, second) we have received a second counter from BofA.
Their first counter asked for a 15% higher price, asked for cash contributions and refused to pay buyer closing costs on a new FHA loan. We answered that by standing pat on all counts - while submitting excellent comps and incidence of FHA info.
They came back and accepted our price, cutting in half their requested cash contributions demand, and still refusing to pay buyer closing costs.
In the market area of the subject property, FHA constitutes 42% of all purchases....with most of those including seller paid buyer costs...usually at around 3%.
As a matter of process, I'd sure like to know what the experience of superstars has been on just how many times these negotiators will trade counters - before throwing you back on the market.
Any other hints you might have, based on what I've said about this specific case, would be welcome.
Replies to This Discussion
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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
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Jim -
They will go back and forth a few times until they say "No more or Final" . Don't let BofA's counter expire. And, if the seller cannot afford to bring cash have them write a letter stating they cannot and why. As for closing costs, that's becoming less common in 2011. Maybe you can ask the Negotiator what the bottom line "Net" is that BofA is willing to accept and work backwards from there.
Best of luck,
Thom Colby
Broker / Negotiator
Newport Beach CA
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Permalink Reply by Lori Young on
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Depends on your rep. Your rep will try to close out your file if they feel it is going south. May not be a bad idea if the file is closed out and you can reopen with a new rep. One case in point: Fannie Mae investor with BOA at the wheel. Boa asked for
25k from borrower plus note. My seller refused and the file after four counters was closed. New file opened a week later. Same buyer now no 25k or note. File is now up for approval with Fannie Mae. Seems like you get a bad rep you get a bad deal. You can always reopen a NEW file with the same buyer. They don't seem to look at old offers.
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Permalink Reply by Jim Hale on
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Thom,
Thanks I will try the seller letter approach, though they clearly have data that shows his inability already.It's hard to believe that approving seller paid buyer closing costs is becoming less common in 2011 - just the opposite is occurring in non-short sales here.
Thom Colby said:
Jim -
They will go back and forth a few times until they say "No more or Final" . Don't let BofA's counter expire. And, if the seller cannot afford to bring cash have them write a letter stating they cannot and why. As for closing costs, that's becoming less common in 2011. Maybe you can ask the Negotiator what the bottom line "Net" is that BofA is willing to accept and work backwards from there.
Best of luck,
Thom Colby
Broker / Negotiator
Newport Beach CA
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Four counters. That is encouraging.
It's hard to believe they don't look at previous offers.....even their 800 number operators can talk to you intelligently about the details of a negotiation in progress. This is, afterall, the age of the computer. Wow! I'll remember that hint. Thanks.
Lori Young said:Depends on your rep. Your rep will try to close out your file if they feel it is going south. May not be a bad idea if the file is closed out and you can reopen with a new rep. One case in point: Fannie Mae investor with BOA at the wheel. Boa asked for
25k from borrower plus note. My seller refused and the file after four counters was closed. New file opened a week later. Same buyer now no 25k or note. File is now up for approval with Fannie Mae. Seems like you get a bad rep you get a bad deal. You can always reopen a NEW file with the same buyer. They don't seem to look at old offers.
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