OK, here's the deal:

My wife and I decided it was time to buy our first home.  Unfortunately, the only house we could both agree on is a SS.  But since we're not in a huge hurry, we figured we might as well make an offer.  Here are the details on the property:

Advertised at about $445k

Average value based on online appraisal tools: $450

Amount owed on 1st: about 370K (Wells Fargo)

Amount owned on 2nd: about 70k (HSBC)

We offered 400k and the seller accepted. 

A few days after the offer went to the bank, Wells asked us to sign a 60 day closing addendum.  That's about it so far.  The seller is using a loss mitigator who seems to be very competent.  

 

So, what do you guys think the odds are of us getting this house?  I know you don't have any crystal balls, but I'd like to hear some professional guesses.

Views: 735

Reply to This

Replies to This Discussion

Why should the realtor cut his fee?  There is no negotiating involved for a buyer's agent fee.  It's just a number that is filled in. The servicers already agree to a maximum percentage.  Guess what- the fee that could have gone to your agent- goes instead to the seller's agent (per the listing agreement) and a smaller percentage goes to the negotiator. Agents are often disallowed to cut commissions also where the 1st specifically states a 2nd is to receive funds not to exceed $xxxx.  It doesn't fly on the HUD.

The agent should not voluntarily cut their fee BUT, since the same agent is on both sides, it's likely the lender will cut it.  For example ING only allows 4% "total" with 2 agents, and reduces to 3% if the same agent is on both sides - twice the work for half the pay!

Recenlty I had a file where BofA would only allow $6K to the 2nd (SLS) but SLS would not release for less than $XXK and BofA would not allow any funds from Seller or from the Buyer.  The agents gave up $XK of their commission and BofA allowed it as long as it was on the HUD as a contribution from agent commission to 2nd lienholder shown on lines 403 & 404 of the HUD.  BofA approved the HUD and sent to Escrow.

Of course this was Buyer #7 over 2 years and the buyer walked away again.  It will go to Trustee Sale on 3/6/2012.

Which is just one more reason to not bring a second realtor to the table. 

OK, got an update from my realtor today.  Wells Fargo has asked the seller to fill our a hardship affidavit. 

Sorry I am confused.  You said there was only 1 realtor. So you have an agent? Then the seller must have an agent.  Are you calling the seller's agent the negotiator or are you referring to the servicer's negotiator?

I'm calling the sellers agent "my" agent too because he's representing both parties.  There is a third party loss mitigator who is being paid a flat fee by the seller.

I think there's a few issues on this one;

1) You said you believe the true value is $450K but you offered $400K.  Based on that, I think you should expect a counter-offer once Wells does it's appaisal / BPO work.

2) There's a good possibility the first COULD be a full payoff but MAYBE NOT - depending upon how long ago the seller stopped making payments - e.g. if seller is 4 months behind, those payments and late fees etc. will be added to the payoff to Wells.  So you may think the payoff is $370K but until the seller or agent have a "payoff demand" from Wells in hand as of an actual closing date, that may not be the case - it could be much higher.

3) HSBC won't go away quietly - my experience is they will be looking for at least $14,000 as their payoff at a minimum and Wells will not pay that amount to them.

 

I have one very similar to this right now.  Wells 1st (Freddie) and Wells 2nd (HELOC).  Full payoff to the 1st is about $15,000 higher than the UPB because there's 5 months of unpaid payments plus interest, late fees, penalties, and escrow deficiency.  But they are getting a full payoff.  The 2nd (HELOC) UPB is about $250,000 and they will be getting about 13% payoff.  It has taken 5 months to get to this point with the HELOC.  I'm expecting an approval tomorrow (but I also have been expecting it for the past two weeks per Wells Exec HELOC group).  The only good news is the Buyer is truly paying FMV and the Wells appraisal came in slightly above the offer.  We have been waiting a month now for Wells to complete the NAE internally.  That is now done so hopefully we are moving forward.

 

As for HSBC, best of luck.  I've not been successful with them.  Maybe it will change now that they have been bought by Capital One - who knows!

 

One last question, if there's a Negotiator on this one, why didn't that person have the Seller complete the Hardship Affidavit when they submitted the Short Sale Package ?

Online appraisal tools?  Are you talking a Zestimate or something similar?  If so I wouldn't base anything on it matching what the BPO/appraisal will come back with.

I averaged the value given by those tools with comps in the area.  BPOs done by realtors can be just as wildly inaccurate as the online tools. 

Do you know if Seller will accept a Short which involves a release of lien from the 2nd lien holder? If so, I'd say "start packing."

A Release of Lien does not mean NO-deficiency !

I am assuming I'm representing the Buyer in this case.

RSS

Members

© 2024   Created by Brett Goldsmith.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************