Replies to This Discussion

Permalink Reply by Kent Dills on June 22, 2010 at 3:36am

Sylvia, this could be a blessing in disguise for you. Send the appraisal to the negotiator and ask for a revised Approval Letter reflecting appraisal value. EMPHASIZE that your client's lender won't allow them to pay more for the property than it's currently worth! Then patiently wait and see what they say!

Permalink Reply by Oma S Hoffman on June 22, 2010 at 3:47am

this is regarding bank of america. Currently working with 7 bofa short sales. The negiotators and Managers are so far off base it's not funny.I've only been able to close 1 with a possible 5 out of 10 rating . On this current property I've submitted comps as well as CMA justifying price offered, now the manager refuses to see logic. This property has multiple, multiple offers . I don't know why this bank is still handling mortgages and why they continue to do mortgage loans. My reccommendation is for them to get their heads out of their whatever and localize their short sale offices. It is a nightmare working with this group of people. The sad thing is many of our home owners have no choice but "short sale.' On another home, the asset manager is asking for pay stubs even though the sellers have sent letters stating they are unemployed. My question to all of us out there we are for the most part having the worst experience dealing with these lenders. Is anyone paying attention to the lack or dismal response from the Banks in this case Bank of America?

Permalink Reply by Short Sale Funding, LLC on June 28, 2010 at 7:33am

To me it depends what percentage $10k is of the total purchase price. If the percentage is relatively small (1%) I wouldn't bother. If it represents 25%, for example, that would be a material amount and I would pursue a price reduction as suggested by Kent.

Permalink Reply by Mark Stafford on August 3, 2010 at 2:41pm

Hi Sylvia, the trick to working with Chase or any other lender on a short sale is to make sure you know what market value is for the home. If you don't, then you are shooting into the dark.

This way, if the offer is on the very high end of the comps, you will instantly know that you are pushing the barrier and home might not appraise for what you need.

I agree with Kent's comments to just submit the appraisal and see what they say. I have NEVER had an approved deal die immediately because the appraisal came in low.

Bottom line - THE LENDER WANTS TO DO THE DEAL! If it is an FHA appraisal, then that will stigma the home for 6 months, or at least it does out here in Arizona.

I would send the appraisal and ask the negotiator what is the best thing we can do to make this work.

Remember one thing, ALL negotiators for any lender receive a commission type bonus for all approved files AND they HAVE TO close a certain amount of files per month or they will get fired, demoted, or what ever.

You have the control, ask nicely and wait for a response. Hope this helps you sleep better tonight :)
-Mark

Permalink Reply by kathleen shaffer on August 9, 2010 at 4:05pm

Just depends if the negotiator will talk with you. Show her comps in the area, let them know how much the market has dropped and how much they stand to lose if they do not close this deal. Let them know the next offer will NOT be any higher in value. BE TOUGH AND PUSH BACK ON THEM.

I have a short sale that began in Feb. with Chase as the short pay lender, and Chase as the buyers new lender.
Thought this would be a slam dunk. NOT!!! Appraisal came in 50K less than offer. That was not an issue as Chase approved the new price, did not take away closing credits and gave us 2 weeeks to close. BUT and this is a BIG BUTT!!!!!
The appraiser said that the home did not have a working stove or water turned on and the plumbing was not repaired.
This was incorrect, but once it is on the appraisal, good luck getting it approved for drawing loan docs.

We have been fighting this for over 3 weeks. We questioned the appraiser's comments as they were incorrect. We proved the water and gas was on, the stove did work and the plumbing worked. All it needed was 9 tiles replaced around the tub faucet. The would not sign off on the appraisal until a licensed contractor went out and did the tile repair and verified in writing that the water and gas were on a working.

That was done this past Sunday. Today, they were sent the report and pictures and they now are asking for ANOTHER appraiser to go out and view the home again. This is the THIRD DAMN appraiser on this property. Three different individuals have gone out there.

We are to close this Friday....HOW ON EARTH CAN CHASE BE SO DEMANDING. This is a 20% down, conventional loan with 25% DTI. How on earth to do I get this past UW and get docs drawn?

Anyone have a clue? I have escalated to the manager, but he refuses to speak with me until we have given UW 5 days to clear their conditions. Oh, and they will not move this condition to funding.....must be approved prior to drawing docs.

THIS IS THE MOST UNPROFESSIONAL LENDER I HAVE EVER SEEN.