WF short sale- Countered High, need advice to try to make the deal work.
We are trying to buy a short sale since middle of October. Two loans, both WF. They came back to us a week ago, countered 24k higher than our offer. They did a BPO and the only home in neighborhood sold back in July for 190,000, (it was their ONLY comp). So the banks said 184,000. At that price they will pay 3% closing costs no problem. Our original offer was 160,000. So we ended up walking away. A week later, we decided to trying offering 174,000. Upping our price 14k and hoping the banks come down 10k. WF was pretty stern with not coming down from the BPO. Since then, the economy has dropped the house prices in the area, but nothing has sold, the asking prices are all too high. We are hoping for another short sale to go through any day now for 174k to back up our offer. It sounds promising as the bank is BofA and it is being finalized by the final negotiator at their bank. In your experience, how is WF on trying to compromise to make a deal work? We came up 14k and are asking them to come down just 10k. Is this a long shot or in your opinion workable? Any advice on helping us close this deal would be welcomed, thanks!
Replies to This Discussion
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Permalink Reply by John Treadwell on
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Re-start the short sale all over ,and send comps with new offer ,if it's been over 90 days they will do a new BPO ,if not try to request one if you don't get a new Neg.
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Permalink Reply by Edee Campbell on
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Be persistent. Provide them documentation backing up your data. Request that they do another appraisal. We have just had this happen with WF and were successful in getting the price reduced drastically and are moving forward with a sale.
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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
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Help me understand - what is the Market Value of the property according to your REALTOR ? Just because it's a short sale does not mean it will sell lower than true market value..
You said: "They came back to us a week ago, countered 24k higher than our offer" - Then you said: "A week later, we decided to trying offering 174,000" followed by: "Since then, the economy has dropped the house prices in the area..."
Are you saying that in the course of one week, the value dropped that drastically?
Also, if the other property with BofA closes at $174K - yes it would be a comp if it is similar - BUT - this is WF and different investors who may have different guidelines for their discounts.
Remember, these banks become "Debt Settlement Companies" once the loans are in default. Their job is to make sure they get the most amount of money possible for the Investors - not just "close a deal"
Best of luck,
Thom Colby
Broker,
Newport Beach CA -
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Permalink Reply by Joe on
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It has been a few weeks since last BPO. The ONLY house sold for 190k back in July, since July the market has gone down in the area. We love this home, and cannot find anything comparable- that is why we are trying to hard to buy this one. There are homes on the market that we could easily get, but we don't like them, and months of looking this is the only home we came across. There are no other comps. That is why we have nothing to back up the price we offered, except hoping this other short sale two doors down gets approved at our new offer price. Or WF tries to actually work with us... That is why I feel it is a long shot and any advice as to how we can assist with getting this house would be helpful and welcomed.
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Krissy -
I really hope you get this house since you want it so much. Here's the issue; the bank has valued the property higher than you want to pay probably because the agent who did the BPO knows exactly what you know - that is; it's the best house in the area. Why don't YOU think it's worth more than what you have offered? What do YOU have to substantiate YOUR offer?
The best thing to do at this point is to "wait and see" if the bank accepts your new offer - or - maybe they will counter it again. Have you thought about getting your new loan through Wells Fargo? They would then be arguing with themselves about value if they were the new lender as well as the short-sale lender :-)
Best of luck and always consult with your REALTOR.
Thom Colby
Broker
Newport Beach CA
Krissy O said:It has been a few weeks since last BPO. The ONLY house sold for 190k back in July, since July the market has gone down in the area. We love this home, and cannot find anything comparable- that is why we are trying to hard to buy this one. There are homes on the market that we could easily get, but we don't like them, and months of looking this is the only home we came across. There are no other comps. That is why we have nothing to back up the price we offered, except hoping this other short sale two doors down gets approved at our new offer price. Or WF tries to actually work with us... That is why I feel it is a long shot and any advice as to how we can assist with getting this house would be helpful and welcomed. -
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I do lots of BPOs and when there aren't many comps in the immediate area the BPO agent or the appraiser will expand their search in order to find the three required sold and list comps. With that said, there had to be more than one comp that WF based their analysis on. Also they want a certain percentage of the BPO value as their minimum price. For example, I recently closed a short sale on a Suntrust loan and during the negotiations, the negotiator countered due to needing 90% of the BPO value as the minimum. I agree with the others that you should provide documentation to back up you claim. Also, keep in mind that short sale does not mean that the bank is going to take low ball offers.....they still want to net a certain amount. Good luck.
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Permalink Reply by Tiffany Cloud on
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Did you figure this out? I have a similar situation. The last 3 short sales I have done with WF they have stuck to their BPO value like super glue - no room for negotiations. I am going to be extremely cautious in the future before taking anymore WF short sales.
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Edee,
I provided WF with all sorts of documentation and they simply said 'their hands were tied per investor' who is Freddie Mac. One BPO and one review is all they will consider. The property backs to public housing with grafitti on the houses and gargbage on the walls. I had the property listed at their BPO value for 2 months with only 1 showing and I have electronic lock box records to prove it.... the negotiator automatically closed my file out. Where do we go now?
Edee Campbell said:Be persistent. Provide them documentation backing up your data. Request that they do another appraisal. We have just had this happen with WF and were successful in getting the price reduced drastically and are moving forward with a sale. -
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Tiffany,
We are actually still trying to get this house- one sold for 2 doors down for our new offer price, and all the homes dropped below our new offer price in the area, so we are able to get this house now it looks like! You really have to be able to back up the offer price with comparable or what condition the house is in. New processes have changed, and the banks actually get more money from foreclosing than what they use to. My advice is stick to your guns and have something to back up your offer, if it is worthwhile to up your offer to a more suitable amount, just think of how much money you are still saving in todays economy. We sat down and made our offer higher because we know this is the right house and we are willing to pay what it is worth in todays market. Foreclosures are becoming more and more if you want to continue to look, alot of short sales that did not go through as short sales are now becoming foreclosures and are in great condition if you can hold out for a few months. Best of luck!
Tiffany Cloud said:Did you figure this out? I have a similar situation. The last 3 short sales I have done with WF they have stuck to their BPO value like super glue - no room for negotiations. I am going to be extremely cautious in the future before taking anymore WF short sales. -
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