Replies to This Discussion

Permalink Reply by Kevin - Greenville, SC on September 25, 2012 at 4:22pm

Not the Buyer's call.  Have a conversation with your Client to see how they want to proceed.

Permalink Reply by Brenda Houghton on September 25, 2012 at 4:36pm

What makes the buyer think they will move forward if the incentive is waived?    Is the buyer's offer too low to meet the minimum net?  If that is the case, it might be worth applying the incentive to the net just to get the deal done and get this behind your seller.  It is your seller's call, though.  If the buyer is just anxious and thinks waiving the incentive will move things faster, he is delusional and in this case, you'll need to explain the process to him.  WF can take 30+ days to approve an offer, even once the ATP is signed. 

Permalink Reply by Vicky Rhodes on September 25, 2012 at 5:20pm

So... if it can take WF 30+ days to issue an official approval letter after the ATP, what's the normal time frame?  We got an ATP a week ago last Friday and we just waiting =)

Permalink Reply by Brenda Houghton on September 26, 2012 at 12:26am

I just closed a WF FHA.  The ATP was issued on 3/15/2012, the contract for a full priced offer was submitted on 3/30/2012, and the approval letter was issued on 6/25/2012.  I was being very lenient stating 30+ days. :)

Permalink Reply by Vicky Rhodes on September 25, 2012 at 5:16pm

Wow..I guess this buyer is a 'power person'.  I agree, it's not really any of their business.  They should be grateful to get a good deal on a home.  Good luck!

Permalink Reply by John Edelman on September 25, 2012 at 5:18pm

How would the seller waiving the incentive move the deal forward.  Why would this even matter to the buyer.  If the net offer meets the FHA guidelines - then the deal should get approved.  If it does not, then a variance will have to be requested to get the short sale approved. Either the buyer wants the house or he doesn't. 

Permalink Reply by Mike Horton on September 25, 2012 at 5:27pm

Since the agreement between the seller and Freddie is not a part of the purchase contract, the listing agent should inform the buyers agent that this has nothing to do with the purchase contract.  In some states sharing the agreement between the seller and lien holders is required, in Arizona it is not and is frowned upon just for reasons that you have brought out. The Free statement is one done of ignorance and bias. Unless they phyiscally have met and shared experiences with the buyer so they understand all the issues which have led to the distressed sale, how would they know the issues with the seller. Take that one step further if they know so much about the seller should they be signing an arms length agreement? My thought is stick to the contract between buyer and seller on one side and keep the seller to lien holder agreement separate except to show the contigency has been statisfied and share only that information which is called for in the purchase agreement. Just my 2 cents.

Permalink Reply by joe beauchamp on September 25, 2012 at 7:05pm

People can be goofy. There is no practical value to the demand unless the negotiator says you don't meet the minimum and the $1K would make the difference. This is a people problem. Could be someone told the buyer some garbage about speeding up deals and the buyer believes it. Or the buyer is just obnoxious. So, do you need the buyer? Can you stomach his attitude, etc?

I try to take a step back and not take the craziness personally - that often helps - I don't get as steamed. And just press on to get things done and be finished with this buyer, hopefully with some $ in your pocket.

Permalink Reply by Ann Howard on September 26, 2012 at 2:58am

Not the Buyer's call, the incentive is based on closing on a set date and will be reduced if it doesn't. That incentive is to help the Seller to relocate and none of the Buyers business.  

Permalink Reply by hay.molly on September 26, 2012 at 1:39pm

I should have mentioned..yes the the offer is below HUD's net approval.  The buyer wants the seller to waive the 1,000 so they can buy the house for 1,000 less.

Permalink Reply by joe beauchamp on September 26, 2012 at 3:37pm

Your buyer's wish isn't accurate. If you have a contract for $100K from the buyer, FHA is not going to let you lower it to $99K - the contract is for $100K.  If the seller gives up the $1K, the buyer still has to pay $100K - that is the contract.

It can only make a difference if you need a variance and $1K is enough to make FHA happy and grant it. I'd say the odds are slim. But, you should know the answer - you know the net needed. FHA is not going to allow that lightly, otherwise they will be accused of having a fake $1K to seller because they routinely steal it back.

If I were the seller, who is getting nothing but irritation from FHA and the bank and apparently the buyer and maybe $1K, I'd be ticked and possibly tell you and everyone else to take a leap - just move, rent the place out and keep the rent w/o making payments and go ahead and foreclose - in 2 to 4 years from now.

So, does the buyer have a comment on which way the seller has his toilet paper roll?