Replies to This Discussion

Permalink Reply by Jeff Payne on April 9, 2010 at 3:55am

The listing agent should be communicating with the negotiator thru equator, as per BofA instructions, if the negotiator does not respond in 2 days, the LA needs to escalate to get an answer. 70 days is not unusual at all, most likely what happened was your offer was too low compared to the appraisal and they did not counter. Did you submit an offer that was really market value of did you lowball and ask for them to pay your closing costs?
The LA should be able to get the file going again providing that your offer is close to the appraised amont.....
Can you upload the letter that they sent declining the short sale?

Permalink Reply by Esther M. Camarotte on April 9, 2010 at 4:02am

I am going to confirm what Jeff has said. If the listing agent is not aggressive in following up then the deal dies. All banks will do either an appraisal if its an FHA short sale or a BPO if its anything else. FYI if the current loan on the property is an FHA and they are doing a short sale then no closing costs are paid by the seller per HUD guidelines unless the buyer is going FHA and then they will only pay 1% of the buyer's loan amount. That is a hard guideline by HUD no exceptions. Hope that helps.

Permalink Reply by Jeff Payne on April 9, 2010 at 4:22am

It looks like you were close... The key is how much the appraisal came back at. Do you know who the investor is? Fannie Mae, Freddie Mac, FHA, VA, etc... From what I see, the sale is only short by about $75K to $80K from what the sellers owe.
In my opinion, you should really try to make your offer as clean as possible without closing costs.......

Peggy said:

Thank you so much for your reply. The house was listed for 550K for a year, then dropped to 499K as short sale. We offer 470K with 7,500 closing cost. The sellers owe about 525K (2 BOA loans). Houses in the neighborhood were sold for 460K to 520K price range and one just foreclosed for 407K on the same street.

Do you think we are that far off? Where can the L/A find the letter for declining the short sale? Can he see it on the Equator?

Thank you so much.

Permalink Reply by Peggy on April 9, 2010 at 5:16am

BOA should have communicate with us about not paying for the closing cost before they declined it, we would be fine with it. Based on your experience, if the sellers/LA reinitiate again, how long it is going to take?

Thanks again.

Permalink Reply by Jeff Payne on April 9, 2010 at 7:43am

If the listing agent is aggressive, you should be able to get it reopened but don't expect a quick answer, probably another 60 to 70 days....

Peggy said:

BOA should have communicate with us about not paying for the closing cost before they declined it, we would be fine with it. Based on your experience, if the sellers/LA reinitiate again, how long it is going to take?

Thanks again.