Replies to This Discussion

Permalink Reply by Susan Burhoe on February 14, 2010 at 12:18am

I had an offer (not originally in the Equator system, but bumped into the process) that was acceptable to Bof A but did not fully cover the second lien holder, so I got the buyer to come up. We raised the offer price with the extra funds going to pay off the second. When B of A countered this new offer they wanted the extra money that had been added in saying that only $3000 would go to the second. This would have been a deal breaker in terms of the second. So I had the bright idea to lower the offer price to the original amount, and have the extra funds paid to the the second lienholder on the HUD. I resubmitted my counter. It worked. My assumption is that as long as the offer to purchase covers the net that B of A was looking for, that the lowering the offer price was acceptable. I am sure that each case is different, but in this case it worked out.

Permalink Reply by R E on February 14, 2010 at 12:36am

That's very interesting. It is reasonable to assume that BofA only cares about their bottom line.

In my case, BofA also put in $3,000 to cover the 2nd lien holder but that's Countrywide (now BofA). But I know that BofA is only servicing agent for the 1st lien holder (alleged to be Fannie Mae but could be Freddie Mac). The reason we think it's Fannie/Freddie is that the Negotiator cited rules excluding seller concessions (waived if the buyer will get mortgage through VA/FHA) and those rules match the Fannie/Freddie rules.

You say it worked. What happened when it worked? Was it like one of those slot machine jackpots? If it didn't work, would it have counter offered or just said "insufficient offer"?

Rog

Susan Burhoe said:

I had an offer (not originally in the Equator system, but bumped into the process) that was acceptable to Bof A but did not fully cover the second lien holder, so I got the buyer to come up. We raised the offer price with the extra funds going to pay off the second. When B of A countered this new offer they wanted the extra money that had been added in saying that only $3000 would go to the second. This would have been a deal breaker in terms of the second. So I had the bright idea to lower the offer price to the original amount, and have the extra funds paid to the the second lienholder on the HUD. I resubmitted my counter. It worked. My assumption is that as long as the offer to purchase covers the net that B of A was looking for, that the lowering the offer price was acceptable. I am sure that each case is different, but in this case it worked out.

Permalink Reply by Susan Burhoe on February 14, 2010 at 12:43am

It worked because I got an approval letter. It sure felt like playing a slot machine. The question becomes how many quaters that I had to put in. The change from B of A to Equator was a long process. I had to resubmit the documents 3 times to different sources.

R E said:

That's very interesting. It is reasonable to assume that BofA only cares about their bottom line.

In my case, BofA also put in $3,000 to cover the 2nd lien holder but that's Countrywide (now BofA). But I know that BofA is only servicing agent for the 1st lien holder (alleged to be Fannie Mae but could be Freddie Mac). The reason we think it's Fannie/Freddie is that the Negotiator cited rules excluding seller concessions (waived if the buyer will get mortgage through VA/FHA) and those rules match the Fannie/Freddie rules.

You say it worked. What happened when it worked? Was it like one of those slot machine jackpots? If it didn't work, would it have counter offered or just said "insufficient offer"?

Rog

Susan Burhoe said:

I had an offer (not originally in the Equator system, but bumped into the process) that was acceptable to Bof A but did not fully cover the second lien holder, so I got the buyer to come up. We raised the offer price with the extra funds going to pay off the second. When B of A countered this new offer they wanted the extra money that had been added in saying that only $3000 would go to the second. This would have been a deal breaker in terms of the second. So I had the bright idea to lower the offer price to the original amount, and have the extra funds paid to the the second lienholder on the HUD. I resubmitted my counter. It worked. My assumption is that as long as the offer to purchase covers the net that B of A was looking for, that the lowering the offer price was acceptable. I am sure that each case is different, but in this case it worked out.

Permalink Reply by R E on February 14, 2010 at 1:02am

I read your original note more carefully. So BofA has only $3,000 going to 2nd lien holder but your HUD1 has more? Are you then in communication with the 2nd lien holder to tell them there is more money than BofA has for them?

I certainly have to hand it to you for your cleverness.

Rog

Susan Burhoe said:

It worked because I got an approval letter. It sure felt like playing a slot machine. The question becomes how many quaters that I had to put in. The change from B of A to Equator was a long process. I had to resubmit the documents 3 times to different sources.

R E said:

That's very interesting. It is reasonable to assume that BofA only cares about their bottom line.

In my case, BofA also put in $3,000 to cover the 2nd lien holder but that's Countrywide (now BofA). But I know that BofA is only servicing agent for the 1st lien holder (alleged to be Fannie Mae but could be Freddie Mac). The reason we think it's Fannie/Freddie is that the Negotiator cited rules excluding seller concessions (waived if the buyer will get mortgage through VA/FHA) and those rules match the Fannie/Freddie rules.

You say it worked. What happened when it worked? Was it like one of those slot machine jackpots? If it didn't work, would it have counter offered or just said "insufficient offer"?

Rog

Susan Burhoe said:

I had an offer (not originally in the Equator system, but bumped into the process) that was acceptable to Bof A but did not fully cover the second lien holder, so I got the buyer to come up. We raised the offer price with the extra funds going to pay off the second. When B of A countered this new offer they wanted the extra money that had been added in saying that only $3000 would go to the second. This would have been a deal breaker in terms of the second. So I had the bright idea to lower the offer price to the original amount, and have the extra funds paid to the the second lienholder on the HUD. I resubmitted my counter. It worked. My assumption is that as long as the offer to purchase covers the net that B of A was looking for, that the lowering the offer price was acceptable. I am sure that each case is different, but in this case it worked out.

Permalink Reply by Susan Burhoe on February 14, 2010 at 1:14am

B of A said the most that they would contribute to the second lien holder was $3000. The second demanded $11,850 to release their lien. I had an offer at the original price, but had to go back out and get a new buyer at the higher price to cover the second. Thus I resubmitted at the higher offer price. It was a nice property, and the buyer really wanted it. That's when I ran into the issue with BofA trying to grab the extra $. I think it was just how the numbers worked that made the situation work. The second will get $3000 of the money from B of A's side, and the additional $8500 from the buyer side. We will close.

R E said:

I read your original note more carefully. So BofA has only $3,000 going to 2nd lien holder but your HUD1 has more? Are you then in communication with the 2nd lien holder to tell them there is more money than BofA has for them?

I certainly have to hand it to you for your cleverness.

Rog

Susan Burhoe said:

It worked because I got an approval letter. It sure felt like playing a slot machine. The question becomes how many quaters that I had to put in. The change from B of A to Equator was a long process. I had to resubmit the documents 3 times to different sources.

R E said:

That's very interesting. It is reasonable to assume that BofA only cares about their bottom line.

In my case, BofA also put in $3,000 to cover the 2nd lien holder but that's Countrywide (now BofA). But I know that BofA is only servicing agent for the 1st lien holder (alleged to be Fannie Mae but could be Freddie Mac). The reason we think it's Fannie/Freddie is that the Negotiator cited rules excluding seller concessions (waived if the buyer will get mortgage through VA/FHA) and those rules match the Fannie/Freddie rules.

You say it worked. What happened when it worked? Was it like one of those slot machine jackpots? If it didn't work, would it have counter offered or just said "insufficient offer"?

Rog

Susan Burhoe said:

I had an offer (not originally in the Equator system, but bumped into the process) that was acceptable to Bof A but did not fully cover the second lien holder, so I got the buyer to come up. We raised the offer price with the extra funds going to pay off the second. When B of A countered this new offer they wanted the extra money that had been added in saying that only $3000 would go to the second. This would have been a deal breaker in terms of the second. So I had the bright idea to lower the offer price to the original amount, and have the extra funds paid to the the second lienholder on the HUD. I resubmitted my counter. It worked. My assumption is that as long as the offer to purchase covers the net that B of A was looking for, that the lowering the offer price was acceptable. I am sure that each case is different, but in this case it worked out.

Permalink Reply by Lori Young on February 14, 2010 at 3:41am

Send the rep an email with your purchase set up and costs broke down along with a HUD-1. Also, call the main short sale line and ask the rep to make the same notes in the system. I have found that issues backed up with system notes seem to help side on the Realtor. Seems that some of these people may not be in the USA and may not fully understand our requests. Good luck.

Permalink Reply by Ronnie Ahmad on February 15, 2010 at 8:09am

So I just received a counter to my offer, they indicated i have 10 days to respond, my story is easy its a cash offer of $358K, they countered at $385K, commission was a flat total of $5000=$2500 to each, i know why? they are close family friends :) the problem we the realtors do not feel its worth that much, if we counter at an additonal $5K, will they counter back or accept or reject? Really nervous we have been working on this since August. Back in November they accepted the $358K, then Equator hit!! We all know what happens afte that. Please any help from anyone would be great

Permalink Reply by R E on February 22, 2010 at 5:04am

Just to let people know that the negotiator said that the only thing that would cause the equator system to stop the process is if I clicked on "Reject" on the online offer form or if the buyer walked.

Permalink Reply by R E on March 2, 2010 at 12:17pm

Thanks Lori,
You mentioned in another discussion that you had a 1.5 hr conversation with Texas? Is this the equator customer service number? I like your approach. We have a negotiator who simply won't reply to our request to see the FHA appraisal.


Lori Young said:

Send the rep an email with your purchase set up and costs broke down along with a HUD-1. Also, call the main short sale line and ask the rep to make the same notes in the system. I have found that issues backed up with system notes seem to help side on the Realtor. Seems that some of these people may not be in the USA and may not fully understand our requests. Good luck.