Wells Fargo CRAZY Counter Offer
My husband and I put in an offer on a short sale that was accepted on July 28th. The couple is in a nasty divorce and have both moved out and stopped paying on the loan after they accepted our offer.
Here are the stats:
Wells Fargo is the primary with a $275,000 balance
Charter One is the second with a $40,000 balance (80/20 Loan, not a HELOC)
We don’t know if there is MI on the property because their broker doesn’t want to release a lot of information or status updates. The property was listed in February at $299,000. The seller’s agent continued to drop the price almost monthly until it was at $249,000. It sat at $249,000 with no offers for a month until ours. We offered $251,000 with a $6,000 credit for closing and pre-paids. We wanted to offer above asking to show that we were serious buyers with the credit back.
The seller’s agent didn’t really want to give us updates. Last Friday, September 23rd, we went to see a house in the development across the street from ours that was the same floor plan, from the same builder on a bigger piece of property that was listed at $235,600. Once their realtor got wind that we went to see another house, it seems he got on the negotiator at Wells.
Wells came back yesterday with a counter offer of $299,000 because a house with the same floor plan as ours (however, had a finished basement, hardwood floors, a fireplace, gutters and a finished blacktop driveway) sold in June for $299,000. Our agent represented the buyers in that sale. She let us know that they wouldn’t even look at our house because it was a short sale.
The sellers agent doesn’t seem to want to do much to combat this, and even our agent isn’t sure how much we could do to change this. We countered at $10,000 higher at $261,000 with the same $6,000 back at closing. We have let the seller’s agent know that this is our final and best offer.
Any advice if the bank declines?
Replies to This Discussion
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Permalink Reply by Liane Jamason on
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Tell the Listing Agent to dispute the BPO due to the interior finishes.
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Permalink Reply by LaDona Lanphere on
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Thanks for the advice. The selling agent went back with 10 good supporting comps (sales and on market), and the negotiator refused to even look at the comps and would not even counter offer. The seller’s lawyer is involved and has closed the short sale and it re-submitting in hopes that a new negotiator will actually take the file seriously.
Thanks, Harry. In terms of your questions, the house with MANY upgrades and almost 800 additional finished square feet in the basement that’s listed at $299 is the exact same house from the same builder.
The house that was listed lower at $235,600 was only at that price for 14 days and had two offers and is now under contract..it is a foreclosure that we actually took a look at last week just to compare. It sat for several months at $269,900 and wasn’t moving. Once they lowered it, they got two offers. It is also the same house from the same builder.
Both houses are direct comparables except both have upgrades that ours does not and both sit on much larger lots.We hope that rejecting the $299K offer and re-submitting will get us somewhere.
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Permalink Reply by Brigitte Mueller on
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While homes under contract and active are used for BPO comps, most weight is given to those that have closed in the last 90 days. The $235,000 price is only an asking price...and the listing agent is not obligated to disclose the offer prices...as well if they are bank or short sales....you will not know the actual sale price until closing.
I have had situations where the appraisal did not match with the offer price and the lien holders were forced to drop the offer price down to the appraised value. Just another piece of the puzzle to consider.
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Ladona,
You fail to mention anything about Charter One. You should run not walk away from them. They will drag their heels and slow down the process beyond beliefe. I would look elseware. Check out the CCO/Charter One
-Joe
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Permalink Reply by RoJane Maybee on
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Order and pay for a professional appraisal -- that is your best strategy to see what the true value is -- and the bank WILL look at it !
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Permalink Reply by Michael Kohler on
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Request the sellers agent to dispute the BPO.
If the bank doesn't reduce the price then move onto another property.
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Permalink Reply by Linda Susan Fox on
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The lender makes the final decision on what the price will be. They give an approval that has been ok'd by the investor. If your relator can jusify the offer price then your agent can discuss this with the listing agent and go back to the lender to discuss. Most of the time the lender will not drop the price once they give the short sale approval, they just foreclose. If the lender is totally wrong for the current market the listing agent needs to show the lender that the current market will not support the price point of the approval. What happened with the junior lien holder, what have they approved? This deal is contingent on getting both lien holders to approve the short sale and at what terms.
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Hi all,
Thanks for your advice. Initially, the sellers lawyer who is negotiating with Wells Fargo (ASC) was going to close the file and have it resubmitted to be picked up by a new negotiator. We got that information on Oct. 6th.
We heard last night that she changed her mind, and decided to dispute the BPO. She spoke with Wells yesterday and confirmed that the dispute was still in progress. She thought that we should have an answer in the next week.
She never asked us to do an appraisal. Has anyone had success in disputing Wells with out one?
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