Replies to This Discussion

Permalink Reply by Jeff Payne on December 12, 2011 at 11:35am

Jennifer, what "Fee" are they referring to?  I dont believe Bank of America charges the buyer a fee?  There shoud be a worksheet that the listing agent can provide, you can send it to me to review at [email protected] if you woud like for me to check it out.  From there you either accept or counter, you will get an approval letter after acceptance.

Permalink Reply by Eric S. Garrison Waterboro, ME on December 12, 2011 at 11:47am

Hi Jennifer,

 

Like Jeff below, not sure what fees you are talking about, but the broker should be able to show you a worksheet outlining the counter. You can abviosly counter again, but this can make the wait time longer. the negotiator is the one issuing the initial counter, then if you accept it, they will have then investor sign off - again, the investor could also counter, but usually they go with the negotiator. Once this is done, the bank issues an acceptance letter to the seller outlining all the terms. Good luck, it is worth the hassle and wait! :)

Permalink Reply by Doug McVinua on December 12, 2011 at 2:18pm

I practice in Arizona and typically agreements are not enforceable until they are in writing and hence a word of caution would be issued on the Home Inspection.

Your situation (state) may be using different paperwork (agreements/contracts) that could impact the situation.  What does your actual contract state?

Bank of America will issue an approval in writing and until such time I would be very careful.

Permalink Reply by Steele V. Propp on December 12, 2011 at 2:20pm

Since the lender is ultimately paying the fees/commissions to the real estate agents it is not uncommon for them to condition the acceptance of the sale on a lowering of the commissions.  And although those who are real estate agents don't like it...it is perfectly legal.

 

The only catch as a buyer is if you had a set fee in your buyer agent contact that was higher,  If you had such a contract, that is.

 

As far as signing anything, if you are the buyer the condition the lender asked for would be signed by the seller.  Not you. 

 

Did the seller accept as well?  Remember that in this short sale BofA isn't the seller.  The borrower who has a mortgage with them is.

Permalink Reply by Doug McVinua on December 12, 2011 at 2:37pm

In Arizona if the bank countered the seller in the Approval the seller would then counter the buyer with terms that matched the counter.

Sometimes the contract will state the seller is to pay a fee at closing that the bank won't agree to pay and then the buyer gets countered by the seller for that fee the bank won't pay.

What is the fee and was it stated in your contract?

Permalink Reply by Jennifer on December 12, 2011 at 3:19pm

Thanks for all the quick responses!  I think I found the answer to my main question in the Equator guide above.  I received the worksheet with the counter - the only change was an added fee for deed preparation.  No change to the price.  I wasn't sure if I needed to sign something to accept, but from the Equator guide it sounds like the listing agent just needs to select "Agree" and the file will be sent for investor review.  Is that correct?  I shouldn't need to do anything else to accept the counter, right? From what I understand, investor review can take a few weeks and if there is MI (which no one seems to know), it could take a bit longer. The counter had a closing date of 1/27, but I don't think my lender (FHA) will proceed until we have a written agreement.

I would really like to believe that we are getting closer to the finish line...how long have others waited for the written approval?  I'm sure every situation is different.  This is so tough - I just want to be excited but I know nothing is certain!  The seller is was relocated because she is in the military, so I am hoping the deficiency will be waived and we won't have that obstacle to overcome.

Permalink Reply by Jennifer on December 12, 2011 at 3:19pm

By the way, I am in Ohio.  There is only 1 loan with B of A.

Permalink Reply by Steele V. Propp on December 12, 2011 at 3:27pm

I think you are fine, Jennifer.  And it makes sense that your new loan will not proceed until there is full approval.  I wouldn't want you to be spending money (appraisal, inspection, etc.) until you know you have a deal.

 

Short sales don't always come together...

Permalink Reply by Jennifer on December 14, 2011 at 5:45am

Thanks, everyone! I'm not sure how to help my agent understand this. He is a friend of family and clearly new to short sales. I didn't know what I was getting myself into, but I've spent the last 3 mths educating myself. I am afraid I have a better understanding of the process than he does and I'm not sure how to approach this without stepping on toes. Its just a lack of experience and i know everyone has to start somewhere, so im not knocking him at all. He wants me to proceed with financing and seems to think it's a done deal, but from what I've read, it could be weeks before I get anything in writing. Am I really making a huge gamble by moving forward?

Permalink Reply by Jeff Payne on December 14, 2011 at 5:53am

DO NOT proceed until you have approval letter in hand.  The banks counteroffer is most likely subject to investor approval.  The delay right now is probably investor approval.  Your agent needs to look out for you on this, if not, you have to look out for yourself, be cautious.

Permalink Reply by Jennifer on December 28, 2011 at 2:39pm

Thanks for all your help! I posted another topic but maybe you could shed some light. Is there any sort of deadline for how long short sales can be in the Equator system? The listing agent is telling me the B of A negotiator had to put our file on hold until I am closer to closing so that we don't run out of time. According to the negotiator, Jan 27th (the date on their counter) is too far out and too many days will have transpired. She said if this happens, the system will close the file and we will have to resubmit. I wanted to wait to get the appraisal like you had advised, but they are basically telling me nothing will move forward until I get the appraisal. Does this make any sense? We don't have anything in writing. I only know that we accepted the counter offer in Equator.

Permalink Reply by Noelia M on December 29, 2011 at 2:23am

Hmmm, that is strange about it being on "hold". We rec'd our counter-offer on Nov 23 and we accepted that day. Then on Dec 13 the bank wanted us to sign an "Amend/Extend Agreement" just to show the agreed purchase price. We rec'd the WRITTEN approval yesterday morning with a closing date set 02/02/2012. No issues regarding how far out the closing date is.  

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