Hi folks, I'm working a short sale where BofA has the first and CitiFinancial has the second thru a collection type company AIC Corp. I've confirmed AIC is working for CitiFinancial and originally they told me 7-10% of the total would work which would be $5500 - now they've come back with $8500+. So - I was wondering if anyone has had success getting BofA to pay more than $3000 to a second, especially since I have their bank letter ok'ng the short sale?
HELP?
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It's rare. I can't recall if I ever got BofA to pay out more to a 2nd than the investor guidelines - I think so but that would have been one where they were considerable over their net. That isn't exactly your question, but your question leads nowhere. Yes, I've frequently had them pay out more than $3K. Most of mine are fannie mae, their guideline is 8% up to some number like $5K (I don't recall).
You are in the typical bind - the 1st will not pay out more - presumably, they base their numbers on what it will save them to not go through foreclosure and what 2nd liens are willing to take to go away. If the 2nd is a collector type company, that is the worst. They bought the debt for pennies - they push real hard, they also play the odds - those odds are that SOMEONE will come up with the money more likely than let it go to foreclosure - they take into account that sometimes it doesn't work, so if they seem to be oblivious to them losing everything as this goes to foreclosure, they've already calculated, as a company, that overall, they win with this strong position, unfortunately. Negotiators for the 2nd in this case can make a huge difference. Some are real pinheads and you need to point out how his boss is going to feel when he loses the money he could have had because he wants too much, etc.
It's often a tough situation. Generally, you'll need to find someone who will come up with some money to appease the 2nd because BofA almost never will do so. They have their guidelines and, unlike most other banks, they don't care if the investor loses or the SS goes away, they just keep arranging the deck chairs on the titanic for the investor.
You should hammer on the 2nd, but you need to expect that you have to come up with some extra money to pay them. Although it is a constitutional right of the seller to pay his bills, BofA WILL object to the seller paying that extra amount directly. They will disallow that on the HUD and would rather have a foreclosure. I think that goes back to basic bank mentality, no matter how good the deal is for them, if someone else is making decent money, they will kill it - mentally, all profits should go to them, so far as banks are concerned. (Yes, I personally lost a good house deal where I was even going to gift $40K to the buyers (hence safer deal for the bank) but the bank refused because I was going to make $20K on the deal - sometimes, a calculator has nothing to do with bank thinking...)
Oh man - these banks are SOOOO short sighted. I just got off the phone with the second and he's come down a bit on what he said he had to have, but we're still about $1800 apart. I've thrown in $750 and the other agent $500 - but I suspect we'll need to do more(as you've noted) to get the deal done!
Thanks for your feedback, I REALLY appreciate it!
joe beauchamp said:It's rare. I can't recall if I ever got BofA to pay out more to a 2nd than the investor guidelines - I think so but that would have been one where they were considerable over their net. That isn't exactly your question, but your question leads nowhere. Yes, I've frequently had them pay out more than $3K. Most of mine are fannie mae, their guideline is 8% up to some number like $5K (I don't recall).
You are in the typical bind - the 1st will not pay out more - presumably, they base their numbers on what it will save them to not go through foreclosure and what 2nd liens are willing to take to go away. If the 2nd is a collector type company, that is the worst. They bought the debt for pennies - they push real hard, they also play the odds - those odds are that SOMEONE will come up with the money more likely than let it go to foreclosure - they take into account that sometimes it doesn't work, so if they seem to be oblivious to them losing everything as this goes to foreclosure, they've already calculated, as a company, that overall, they win with this strong position, unfortunately. Negotiators for the 2nd in this case can make a huge difference. Some are real pinheads and you need to point out how his boss is going to feel when he loses the money he could have had because he wants too much, etc.
It's often a tough situation. Generally, you'll need to find someone who will come up with some money to appease the 2nd because BofA almost never will do so. They have their guidelines and, unlike most other banks, they don't care if the investor loses or the SS goes away, they just keep arranging the deck chairs on the titanic for the investor.
You should hammer on the 2nd, but you need to expect that you have to come up with some extra money to pay them. Although it is a constitutional right of the seller to pay his bills, BofA WILL object to the seller paying that extra amount directly. They will disallow that on the HUD and would rather have a foreclosure. I think that goes back to basic bank mentality, no matter how good the deal is for them, if someone else is making decent money, they will kill it - mentally, all profits should go to them, so far as banks are concerned. (Yes, I personally lost a good house deal where I was even going to gift $40K to the buyers (hence safer deal for the bank) but the bank refused because I was going to make $20K on the deal - sometimes, a calculator has nothing to do with bank thinking...)
I am or was (still not sure) working on a short sale where BOA would only give GMAC $3000. GMAC was also charged off and wants $13k. BOA would not budge. So, yes the money will have to come from somewhere else. Joe, if the buyer contributes towards the 2nd on the HUD, will BOA allow that?
I am or was (still not sure) working on a short sale where BOA would only give GMAC $3000. GMAC was also charged off and wants $13k. BOA would not budge. So, yes the money will have to come from somewhere else. Joe, if the buyer contributes towards the 2nd on the HUD, will BOA allow that?
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