Need help and suggestions please
We listed a Long Beach short sale property for our clients 102 days ago at $429K. We quickly got an offer but the buyer backed out almost immediately. When we replaced that offer a few weeks later with one at $410K, the property became a short sale, which we submitted to Indymac. However, those buyers also quickly backed out, saying the property needed too much work. Since then, we've continued to market the home and gradually reduce the price. It's now at $355K. Previously the only offers I'd gotten were a letter of intent and some lowball offers at about $300K. However, yesterday I got a serious offer at $335K. I emailed the negotiator at Service Link and she said it will not suffice and she is closing the file. A further email exchange revealed that the bank is seeking an offer of at least $425K. Which is just not going to happen. Normally, I would try to negotiate with the bank regarding the price. I would send them the contractor estimates and photos that support a lower price. However, in this case, we're nearly $100K apart and we're running out of time. My clients have a mountain of other debts as well and are considering bankruptcy next month if we can't get an approval. I'm thinking that perhaps a deed in lieu of foreclosure would make sense at this point? Has anyone had a client do a deed in lieu of foreclosure? We've gotten all of our other prevsious short sales approved so haven't had to deal with this before... Or would they be better off to just file bankruptcy and deal with it that way?
I'd love your thoughts. I'm feeling very stuck. Thanks in advance!
Replies to This Discussion
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Permalink Reply by Michael Hayley on
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If it is in the best interests of the client to avoid bankruptcy, I say, *make your case as strongly as you can. *Ask for another BPO. *close out this case and open a new one hoping to get another negotiator, *thoroughly document your case for value. That said, this situation is so ...IndyMac.
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Permalink Reply by Shannon Jones on
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In many cases, I've found that it's in people's best interests to avoid bankruptcy. But in this case, the homeowners have such other staggering consumer debts that they will need to file bankruptcy even if we are able to do a short sale. And I'm really wondering if it might make sense for them to go ahead and do it sooner rather than later? Thoughts?
I did try to call Indymac this morning to ask about deed in lieu but gave up after 25 minutes on hold...
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Permalink Reply by Maria Evans on
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Shannon,
Try to focus on comps, number of similar houses on the market and how many sales in the last 3 months. There should be a way to proof you have a fair offer. Make sure to keep the house on the market (I don't like to do this to buyers waiting for an approval but you need to make your point with bank). Since market is still going down, if inventory is high only houses priced well will sell. Needs to make sense.
Try to talk to a supervisor. Good luck! -
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Permalink Reply by Karyn samuel on
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Hi Shannon, I feel your pain with ServiceLink. I have a buyer right now for an IndyMac Short Sale and we are 30k apart on a 450k property. The buyer will not come up in price because the comps do not support it. We submitted CMAs with closed sales in the last 3 months to support our price. Come to find out, the Service Link rep after repeated requests by us to justify HER comps, gave us the two comps they are relying on. One is an ACTIVE listing, that has been on the market for nearly 300 days (Um, maybe it's overpriced?) and the other was WITHDRAWN from the market after being on for nearly a year. When we pointed this out to her, she merely said that they were holding firm at 485 and if the buyer would not raise the price, they would close the file.
It seems like we should be ablet to escalate this, but so far, no luck!
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