Replies to This Discussion

Permalink Reply by Katerina Gasset on August 11, 2010 at 11:41am

They don't normally like to pay cc unless it is FHA or some other type of community program. Then they still will counter back with 3%. But it all depends on how much net they are getting in relation to market value, etc. It always comes down to the net.

Permalink Reply by Christine Donovan on August 11, 2010 at 6:46pm

Katerina - Thank you.

Permalink Reply by Paul Francis - Vegas Short Sales on August 11, 2010 at 7:49pm

My experience with B of A on this... Tough to get on even if the Net makes more sense then B of A foreclosing. Just ask all of the Buyer's agents out there that have clients using FHA loans how successful they are purchasing a B of A REO property. Of course, in our market, over 30% of buyers are paying cash so that certainly makes it difficult to compete against. I've had more then one offer from buyers using an FHA loan completely denied by the B of A REO asset manager to just see it close for less down the road... simply because they just did not want to deal with FHA appraisals, closing costs, etc...

I think it really matters on your market. I've gotten some through and B of A paid for the buyers closing costs (non FHA), but we had really, really solid purchase prices with fantastic loan officers. Borderline "will it even appraise" scenarios where a big sigh of relief was realized when we got the news that it did appraise.

As Katerina states, it's all about the net and with B of A... I personally think they would rather foreclose on the property then accept a short sale.

Permalink Reply by Janie Booth on August 12, 2010 at 5:34am

In CA, B of A did accept 2% for buyer's closing costs with conventional financing, but then would not pay for anything else and moved all other seller's closing costs to buyer's side. Thankfully, the buyer accepted their counter. I think B of A agreed to pay for even part of the closing costs because there are significant repairs and the buyer is taking it as is. I'm sure Katerina is right in that B of A's net worked with our scenario and wouldn't count on them paying buyers cc's on other deals with conventional financing.

Permalink Reply by Valorie Stover Quality Realtor on August 12, 2010 at 6:44am

Yes, they didn't even pay everything that the seller should have paid. The buyer paid some of the sellers cost.

Permalink Reply by Debbie Franklyn on August 12, 2010 at 10:45am

I had one where B of A paid CC for buyer and it is VA.

Permalink Reply by Janie Booth on August 14, 2010 at 1:54am

Christine - Update on my last post here regarding buyer paid cc. For audit purposes, closer has asked me to put back on the seller side of the HUD the typical seller paid fees, taxes, escrow (settlement), title, natural hazards report and just reduce the credit to the buyer an equivalent amount. I think that they have a lot of new hires and this really should have been done at the negotiator level before the approval letter was issued. He also gave me a tip to always counter back 60 days whenever we receive a counter from them, which completely makes sense. I would only counter the date when it looked like we were running out of time. What I am also taking away from this is that if the negotiator counters something out that doesn't look right, I will put it back in and make a note in the comments section, maybe follow up with a phone call. Back to the buyer paid closing costs, the only reason why I think they left any kind of a credit in for the buyer's closing costs with conventional financing was that there were significant repair issues to be done after closing and our buyer would have walked...and ultimately the numbers obviously worked for them.

Permalink Reply by Joe Niece on August 16, 2010 at 12:49pm

It actually in not a BOA thing, it is an FHA thing. If it is a short sale with previous FHA financing, the bank can not contribute to the buyer unless the new loan is a VA loan and the contribution is limited. The contribution is Zero for a new FHA or Conventional Loan.