Short Sale Approval Letter In Hand. Snag: VA Appraisal Came In $25,000 Low! Any Suggestions?
This short sale is one of the old ones prior to Equator ( U/C in December 2009) Seller had a ratified offer that I submitted to bank at FVM! Just a tad above list price. Everything was in order.Then in March 2010, BOA returns terms that they want $330,000 or no closing costs. Buyers here in Prince William County, Virginia are for the most part are first time buyers. This buyer was VA Buyer ( the back up buyer was an FHA Buyer) Neither buyer could qualify for $50,000 higher sales price. They walked.
House goes back on the market. Except Bank of America/Investors want $330,000. I send comps to show values are not that high house was listed for $279,900 in November 2009 and values have gone up since then so FMV is about $290,000 give or take a few $. They would not listen. They wanted me to raise the price to $330,000. After 12 days in the hot spring market, finally BOA says lower the price to $315K.
We did that, and got an offer. Finally moving to settlement. Short Sale letter was received and all was well, heading toward settlement. BOA is happy, buyers are happy, finally everything is going in the right direction. Then WHAM May 10th, 2010, VA Appraiser notify's lender he cannot find comps, everything is settling lower than list price. Where did listing agent come up with this price. Oh no...this one is all Bank of America. Fair Market Value as determined by VA Appraiser is $290,000. The signed addendums were submitted to BOA on May 14th, 2010.
All we need is the revised lender letter stating the sales price has been reduced from $315,000 to $290,000 due to the Certified Uniform Appraisal.
Bank of America's answer , you have a new negotitator, please have seller complete these tasks.Upload all current documents and hardship letter again. ( they are rebuilding the file!!!)
It's like the movie Ground Hog Day!!!!!!!!!!!!!!!!
Can anyone pass on a name of someone behind the goldern gate of the Equator System?.
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Replies to This Discussion
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Permalink Reply by Esther M. Camarotte on
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Call me I am in Fairfax, VA 202-344-0045 I will help you through this.
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Permalink Reply by Ben Benita on
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You may be in trouble....we had the EXACT same issue on a VA appraisal, short sale approved at $150k in Pricne WIlliam COunty (Manassas, VA), the VA appraisal cam ein at only $129k and B of A would not budge, even my contacts higher up said they could do nothing (it was a Freddie Mac loan).
Home went to foreclosure as a result and numerous complaitns were filed with appropriate parties......REALLY unbelievable.
Esther, if you have any words of wisdom on getting past this, love to have you share with the group or contact me at [email protected]
We filed complaints with the OCC, OTS and state attorney general, nothing came thereof. -
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Permalink Reply by Peggy James on
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Thanks Ben... BOA stated on Friday, they understood the urgency and we should have a response by Tuesday. Stay tuned. When there are cases like this, when BOA is causing serious hard and distress for so many. Buyers are loosing $8000 tax incentive...Seller credit is further destroyed for no reason since this home was SOLD at Fair Market price twice and BOA countered $50K high. It is like a viscious cycle. I think the BOA Managers need to take a 5 day Boot Camp over at the Wachovia Short Sale Dept. The staff is empowered to answer questions and to assit.
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Esther, Peggy -- I am local, work out of Haymarket and Manassas, VA if you ever want to discuss short sales (or something actually interesting)
Anyway, moving forward I would just challenge the high BPO value.
You also need to know if there is mortgage insurance on the property (you should ALWAYS find this out early).
If there is MI, you could also run into problems.....in some csaes, it actually makes the most sense for the investor just to foreclose -
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Permalink Reply by Tim Harrison on
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I've got close to the same story; I'm an end buyer and qualify for the $8000 tax credit. I've been involved with this short sale for 8 long months. My original offer was $240k, BOA's BPO came in at $295k and I accepted knowing it wouldn't appraise. The VA appraisal came in at $235k and we submitted it. They countered at $250k and I countered at $240k about 1 week ago. I know it's stupid to offer $5k over FMV but there are a lot of "extras" that the nice seller is leaving for me.
We've already filed a complaint with the OCC and BBB about 2 months ago and that got some movement but mainly just the CEO's office blowing smoke. Last week along with my counter offer I included a 1 page write-up explaining about me being a first-time home buyer, paying over FMV, etc. and faxed it to the President's complaint line.
I also have a contract on an REO that will close after June 30th. I definitely put that in my complaint letter letting them know that I really am ready to walk. I specifically said that the reason the 2nd house is closing after June 30th is so there isn't any funny business at closing of the short sale (extra fees, more demands, etc). So I'm about as leveraged as I can be as a buyer.
I'm calling my State (CA) representative's office tomorrow to see if he's got any buddies at Freddie Mac.
The worst thing about the short sale is that both agents are essentially worthless. So I sure appreciate everyone's input on this GREAT site! -
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Since the appraisal came in lower and they want to lower the price Peggy has a right to actually see the appraisal and should send it over to BoA. Let them argue with an actual certified VA appraiser regarding value. That can be difficult. As for the Freddie thing they are just strange when it comes to short sales. My comment here is going to be how much are they getting from the government. I just had one in Georgia where we had 2 offers and were scheduled for foreclosure I was unable to postpone it and Freddie called the homeowner directly and said no they will not postpone it and that the homeowner should be prepared. Sometimes they just prefer to foreclose.
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