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"85-90%" has no meaning out of context. 85% of market value, principal value remaining; does that factor in the $1k in taxes added each month? (Taxes trump everything.) Perhaps BOA has not acted "logically," but they have acted rationally (or the other way around). The short sale is a process, the process does work, but to try to force your logic onto a system so externally and internally regulated can be likened to tilting at windmills.
Let the pros do their work and trust in the system.
The only favor being done is that the investor (not always the bank) is even considers a short sale. Try this metaphor:
A person buys a new car on credit. They fall behind on their payments, so they sell the car to you for less than what they owe. Know of any credit companies that would say, "Well, ok, I guess a favor was being done for us?" Heck no, they want their car back!
Homes are more important than cars in the whole "food, clothing, shelter" scheme, and investors keep that in mind, offering the short sale as an alternative to the repo man showing up the next day. Still, investors aren't in the business to lose money, so they weigh a myriad of factors--cost of foreclosure vs. loss on the short sale, the ratio of the amount of sale vs. the unpaid principal balance and other stuff they keep secret and ever morphing.
Sorry, but if you are a buyer, you are doing as much of a "favor" in a short sale as when buying a property the seller owns free and clear. Granted, the short sale is more complicated and requires more time, and the selling agent will appreciate and counsel your patience.
Unless the loan is delegated, neither the negotiator, team lead, dept. mgr. or even the CEO can approve the offer amount--they can only suggest it to the investor for investor approval. Same with the second.
"85-90%" has no meaning out of context. 85% of market value, principal value remaining; does that factor in the $1k in taxes added each month? (Taxes trump everything.) Perhaps BOA has not acted "logically," but they have acted rationally (or the other way around). The short sale is a process, the process does work, but to try to force your logic onto a system so externally and internally regulated can be likened to tilting at windmills.
Let the pros do their work and trust in the system.
Follow up -
Both the banks held firm for a while, the seller decided to order an appraisal to show that our offer was the best they could possibly get. Appraisal came back around 30k less than our offer. We signed one final extension and gave the banks a deadline for a final yes/no. The deadline came and went, so I terminated the agreement. I got a copy of the HUD-1, there was only a very, very small amount owed in taxes. BOA was owed 350k principal, they were getting 371k if they would have agreed to pay Citi the 10%, or 15k. BOA could have gotten back full loan amount plus 21k. Instead they kept pushing for the extra 12k. Now they get nothing from us. I expect to see this house on the auction block soon. As for me, I am looking elsewhere now - I don't think I will waste my time with another short sale. Our offer would have been a good deal 8 months ago, but prices are still in freefall and we would have been overpaying now....thankfully BOA is completely inept and took so long!
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