Replies to This Discussion

Permalink Reply by Deidre St. Romain on June 29, 2010 at 7:04am

No it is not a trick question. Basically he needs to write a current Hardship Letter outlining his financial situation - being brief as possible, re-iterate that there are no funds available because he is going to incur moving costs. However, if he can "in good faith" make ANY cash contribution then your chances of approval greatly improve. The seller needs to "participate" in the sale - that is the key! - IMHO.

Permalink Reply by CJ Wright on June 29, 2010 at 8:01am

Mike, each situation is viewed thru multiple filters (homesteaded property, owner occupied, are they late on payments, who is the investor/what type loan, etc.) Just have the seller write the letter, send it to you to upload to Equator. I recently had to have a seller do the same thing explaining why he had no w-2's to produce (b/c he is a self-employed attorney) and they accepted the letter.

I'm convinced they don't really look at what we upload anyway- just the title and a cursory glance.

BTW, for all, this short sale is a non-owner occupied, investor short sale with BOA as the servicer and investor. I HAVE short sale approval and will close shortly with NO PROM NOTE, NO CASH TO CLOSE, and we experienced a dispute between a jacked-up BPO and the buyer's VA appraisal. We hammered everything out and we are getting ready to close.

To paraphrase the great Ben Benita: Never, never, never give up! Negotiate, negotiate, negotiate! Don't take no for an answer. When you don't hear what you need to hear: keep asking, politely but insistently....

Thanks for the tons of help Guys - YOU made this deal possible for me. cj

Permalink Reply by Lisa Lucas, CRS, CDPE on June 29, 2010 at 9:30am

We had a visit from a BoA Short Sale Specialist the other day. He said that if the seller has good credit because they are paying other bills but not paying their mortgage, that they will ask them to bring cash to the closing. This happened to me on a $55,000 home or which they asked the sellers to bring $5000. They are on SS and receiving Disabled Veteran's Benefits. On further questioning as to the fairness of their request, he said that this also happens when the seller has PMI on the loan. I am not sure WHY the cash has to come from the seller if there is PMI -- it sounds like more excuses from BoA and the investor for not doing the deal.

The other two responses as to what to do are correct, but because of the situation above, they may still require cash if they do not make a very good case as to why they are paying other bills. Isn't that something?!

For my sale, the sellers have moved out of the state and I believe the borrower is in poor health. My buyers are going under contract on something else. Ultimately, this home will go into foreclosure, they will spend money on legal fees and get less than $45,000 for the property. I don't care what anyone says about this being a "process". Other banks have streamlined their methods, BoA needs to stop frustrating its customers and those that try to do business with them and with their customers...All up, it is just Big Banking doing what corporations do when there is no regulation of their business practices.