Replies to This Discussion

Permalink Reply by Wendy Rulnick on February 25, 2012 at 4:01am

Tni - I have done one Coop. The approval dragged out for over 60 days, although it was called "pre approved" and even had a set listing price. I have another one in process.  I listed the property (without a set price), quickly got it under contract, and now it is in the "valuations" stage in Equator, on a different track than a standard short sale. They have not allowed us to upload any contract documents yet. I had to upload my "marketing plan". Did  you hear me say, "it's under contract"! I had to upload my marketing plan, anyway.  The one issue with Coop is the third party vendors, which can slow things down. Ask Bryant, though, he's  had some very good experiences with Coop. I have not run into a post-120 marketing period issue.

Permalink Reply by Tni LeBlanc (805) 878-9879 on February 25, 2012 at 6:31am

Well it is being sold as a very efficient short sale.  

Your experience speaks differently though.  I am not seeing the advantage at all if they are going to be just as slow as other programs -- of course the seller does get $2500 in cases where they may not be HAFA eligible -- but in some cases that is not enough to swing things one way or another ($10,000 might do the trick though -- that might buy you a tank of gas in California right now).  However, I just don't see why someone would do Coop when they could do HAFA. 

My favorite short sale so far with BofA was a Fannie Mae streamlined -- it was beautiful.    

Also at first I was told no financial docs needed for Coop, then later yes documents are needed.  Then later no docs are needed because we are in California.... maybe because they can't pursue after most shorts here?  Anyway, makes you believe that at any moment you may need financial docs to clear some hurdle, so what is the point?

Permalink Reply by Bryant Tutas on February 25, 2012 at 7:31am

The advantages are:

1. Pre approved pricing
2. Full waiver of deficiency
3. Cash at closing. Up to 20k in Florida
4. Very low or no seller financials. In fact the ones I have done they didn't even ask for a hardship letter. ZERO seller docs.
5. Don't need to be primary property.

I've closed on quite a few of these and have 4 under contract right now. I've closed exactly TWO HAFA deals and both were a nightmare.

Most of my co-ops were handled through Dignifies Solutions

1.  

Permalink Reply by Tni LeBlanc (805) 878-9879 on February 25, 2012 at 2:53pm

$20,000 would be very sweet and certainly make the decision making easier.  Maybe they are offering that in Florida since you are a judicial foreclosure state and foreclosures take for-e-ver there and truly cost an arm and a leg.  Would love to see that in CA.

I thought that they did not guarantee waiver of deficiency under Co-op though-- that it was investor by investor.  Of course that doesn't matter as much in CA as FL.  

I did know that it could be for an investment property.

Again written materials from BofA to hand to a client would be helpful.  But, the reps I've been dealing with at DTS said they didn't want anything to be used against them down the line.  Great.  I find that by the time people come to me for a short sale they don't exactly have a lot of trust built up in BofA (and other lenders) and refusing to provide a written explanation of the program does not help.  I should not be the one (primarily) giving a written explanation of the program.  

My experience with HAFA is similar to yours, but at least I have written materials I can give to a client explaining how it works (even if it doesn't work that way!)

My biggest hurdle is putting someone into a BofA program that will force them into a deed in lieu in 120 days.  Most of my clients/contacts don't want a deed in lieu and they don't trust BofA.  So, how do they expect me to enroll people in the program without issuing a nice color brochure in advance and putting in writing what happens if they need a little extra time.

Anyway, those are my thoughts.  I'd like to try one out but my clients are wary and so am I.  

Permalink Reply by Michael Schneider on February 26, 2012 at 4:50pm

I believe I'm on number four with the BofA co-op program.  This one managed by Dignified Transition Solutions.

One was rejected for HAFA, put into co-op, and somehow ended up being approved and closed under HAFA.

One was really just handled as a normal short sale, as we had the offer at the time of approval into co-op.

One in process was about to be sued, so I applied for co-op, and one with DTS.

I don't like "appraisals prior to offer".  Just interferes with the sales process, in my opinion. So, the key to me is whether or not BofA will lower the price when the appraisals are too high.

Neither banks, insurers nor appraisers should be setting sales prices, in my opinion.  Sale professionals should be.  This is one of the fatal flaws in HAFA and PFSP, and if co-op acquires their valuation process, it will be a program to avoid.  Or at least the "appraisal prior to offer" portion of the program.  As I try to do with HAFA.

Why would anyone want a Servicer in Phoenix setting prices for houses in Maine????

Permalink Reply by Tni LeBlanc (805) 878-9879 on February 27, 2012 at 8:51am

Hi Mike -

That is funny about being rejected and then put back into HAFA. 

I think that may end up happening to one of my files as well.

 

I recently had the experience where one month into a marketing period they sent for a new appraisal.  So that price was good for what, one week?  If they are going to do that they can keep their "pre-approved" prices.

 

Considering that we were fighting about values routinely for about 3 years until prices settled in most of the segments of the market I work -- I feel your pain.  Now I am getting reasonable values, but before and still in some segments (higher end) they don't have a clue.  I do like the pre-approved prices though -- let's me know if the bank is going to start in orbit or on planet earth.

Permalink Reply by Michael Schneider on February 27, 2012 at 9:03am

@Tni  Okay, that's one way to look at the "appraisal prior to offer".  I'm a statistician by training.  So, my view of the world is "samples of size one are powerful".  Meaning, the offer is the best estimator of value, assuming it's unbiased, or at least nearly so.