BofA Requires Unsolicited Seller Concession (Buyer Credit)
I have (for me) a head-scratcher. Can someone explain, or conjecture, the logic of this:
Short sale proposal with BofA in Equator. The price is acceptable, and we agree on the net proceeds. Investor is a Trustee, BoNY, so the loan is presumably securtized.
The Buyers have not asked for a seller concession.
BofA rejected my request for Borrower Incentive, largely to pay reasonable closing costs.
BofA move the Borrower Incentive to a Buyer Credit, for the Buyer to pay their closting costs, unsolicited.
I countered by moving the Buyer Credit back to the Seller Side, accepting the net proceeds. So, my counter did not lower the Investor net.
But, BofA/Investor is insisting that the money be given to the Buyer.
First of all, I just don't understand the logic of this. To me, this just makes no sense.
Second, I would think there could by a legal issue here. What authority does the iInvestor have to "give" money to the Buyer. Suppose they were to give the Buyer $100,000, thereby increasing the deficiency. The Investor gives the future deficiency to the Buyer, and then claims they have the future right to collect the debt from the Seller?
HUMMMM....This just feels inappropriate to me.
Replies to This Discussion
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Permalink Reply by Ute Ferdig on
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I would hope there is no deficiency at all. Unless, it's a HAFA short sale that provides for up to $3,000 seller moving expense allowance, most lenders are not willing to give money to the seller. They walk away with nothing (Wachovia and maybe now some of Wells Fargo short sales are exception). Did the offer ask for the seller to pay all closing cost? By giving the buyer a credit and not paying the buyer closing cost, it may be a wash. I know that many times we don't understand why the bank won't do something when the bottom line comes out to the same. I suspect is has to do with the fact that the servicers apply investor guidelines to the T and they don't fight with the investor to deviate from the guidelines. I don't think one of the guidelines is just looking at the bottom line.
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Permalink Reply by Gunna Voigt on
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This does not compute! Do they speak English?
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Permalink Reply by Michael Schneider on
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Gunna,
Well, I guess that depends on whether you think Equatorian is English?
Equatorian! I like it. We all speak Equatorian. So, what's the secret handshake?
Not HAFA, btw, as Seller moved out, therefore violating one of the requirements for HAFA.
And, no, the Buyer has not requested a credit and so there is no credit in the Purchase Agreement. -
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