I have found that more times than not the Seller is not only willing to but wants to make a cash contribution or sign a note to get the deal done. It helps them to feel better about their situation. Most people WANT to pay their bills and honor their obligations.
Our job as Short Sale Agents is to give the Seller the facts and let them make the decision.
Here are two responses recently received from Bank of America
and how they were presented to my Sellers.
What Bank of America
is really saying is "Yes we approved your Short Sale request now let's work out the details". This is the response we want. Right?
In response to your counter offer, Bank of America will not budge. They rejected your offer of $500. Below are the 2 options they have given.
OPTION 1: total proceeds of sale toward the 2nd $7,500.00 Can be any combination of proceeds of sale AND 'cash contribution.
OPTION 2: $3,000 proceeds of sale PLUS new deficiency note for $5,000.00, payable at $150.00 each , 0% APR.
We already have $2,350 to give to the 2nd so subtract that from the $7,500 figure leaving $5,150 needed for the first option and for the 2nd option it would require $650 cash and a note for $5,000. The notes are soft which means they have zero interest and they are unsecured.
Now we could try to get the buyer up higher. Although I personally feel this may cause an appraisal issue with their mortgage. The note could possibly be negotiated for a longer term, say 5 years. That would make the payment $83.33. They may even go 7 to 10 years.
Please consider your options and let me know. We need to give them a response no later than tomorrow.
I have just received an email from Bank of America. They are asking you to contribute either $3,000 cash at closing or they want you to sign a $10,000 soft note. The note would be interest free. I would think they would go either 5 or 10 years on the note. 5 years would have a payment of $166.67 per month and 10 years would be 83.33
What are you thoughts? The other items are things I will take care of. Please let me know as soon as possible as time is of the essence.
***I am not an Attorney and cannot give legal advice. You are advised to seek competent legal and tax advice. Any decision you make may have negative repercussions.
Now I don't know what these particular Sellers will decide. They may accept the offers or they may want to negotiate. Once they decide I will act accordingly. I do feel that both of these Short Sales will get closed. Any questions?