PLEASE HELP!!! NEED MORE INFO!!! BofA increased my short sale asking price and now the asking price is higher than the market value and not attracting buyer interest. Why?
i need contact info for a higher up at BofA. Please email me at @ [email protected]
I am in a short sale with bofa. My home was appraised at 250K with similar places in the exact neighborhood selling for around $215. I owe $400 on the loan. So i get an offer for $250, which BofA approves. YEAHHHH!!!! I thought it would be smooth sailing...WAIT...NOT SO FAST!!!! after a grueling 4.5 months, the buyer decides to back out a week before close of escrow with some lame reason. What happens next is what confuses the heck out of me. So no big deal..we have other offers on the table.
BofA sends a new short sale agreement since the buyer canceled. This time BofA decides for not apparent or justifiable reason to increase the short sale asking price to $300K....what the heck are they thinking. Before when the house was on the market at the current market value i could not keep the potential buyers away. Now BofA decides to increase the asking price without any valid justification. Now we are lucky to even get a call from anyone. What the heck is going on over there. My realtor has sent them the comps and everything through the equator system and has even asked the negotiator for the reason for the price increase and their answer is "the bank came up with it" .. Did they not run comps? Are they blind? Prices in are area have been going down, not up!!!! we have until the end of March to short sale the place, but i doubt that will happen as long as the price is as high as it is. What are they smoking over there at BofA.
Has anyone else encountered this problem...if so, please tell me how you got them to fix the problem.
I am in a short sale with bofa. My home was appraised at 250K with similar places in the exact neighborhood selling for around $215. I owe $400 on the loan. So i get an offer for $250, which BofA approves. YEAHHHH!!!! I thought it would be smooth sailing...WAIT...NOT SO FAST!!!! after a grueling 4.5 months, the buyer decides to back out a week before close of escrow with some lame reason. What happens next is what confuses the heck out of me. So no big deal..we have other offers on the table.
BofA sends a new short sale agreement since the buyer canceled. This time BofA decides for not apparent or justifiable reason to increase the short sale asking price to $300K....what the heck are they thinking. Before when the house was on the market at the current market value i could not keep the potential buyers away. Now BofA decides to increase the asking price without any valid justification. Now we are lucky to even get a call from anyone. What the heck is going on over there. My realtor has sent them the comps and everything through the equator system and has even asked the negotiator for the reason for the price increase and their answer is "the bank came up with it" .. Did they not run comps? Are they blind? Prices in are area have been going down, not up!!!! we have until the end of March to short sale the place, but i doubt that will happen as long as the price is as high as it is. What are they smoking over there at BofA.
Has anyone else encountered this problem...if so, please tell me how you got them to fix the problem.
Replies to This Discussion
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Permalink Reply by Jilly on
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Is this one of the new preapproved short sales? If not, then the bank does not set a price. The seller uploads an offer and the bank goes from there.
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This is an approved short sale. The problem is the bank told us that our property is valued at $300 when they are only selling for around $220 if one runs comps. We had an offer and the bank approved it at $250, but the buyer backed out and the bank then had to send us another short sale agreement with a new value of $300. My listing agent then tells me she had to change the listing price on the MLS from $229 to $300. The inquiries from potential buyers went from 5/per day to zero. I am not sure why the bank increase their asking price.
is it my selling agent that is miss informed. she is telling me that she cannot put any other price because she has to put the listing price that the bank is asking for. does this make sense? -
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Permalink Reply by Brigitte Powell on
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Same thing happened to me on my GMAC Short Sale, Had an offer of 315,000 and they would not accept any less than 340,000. The contract died, I changed the listing in MLS to 340,000 and here it sits. No lookers, no offers. I think it has to do with the investors. There has been no letter of foreclosure to my Sellers, so there seems to be a money issue somewhere. i personally don't know what the process is for investors to ok a foreclosure. If anyone does, enlighten me. I was told the investors had to come up with money??? I don't understand that.
Just curious on this one, did you get a foreclosure notice? -
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Permalink Reply by Mike Horton on
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Yes, the BPO they used ran past the 90 day time limit and they ordered a new one for the new offer. BPO's can be a real problem since some agents who do them are not very (searching for a nice word here) accurate in their evaluation (try doing 10 a day to see how accurate they are). You are going to have to challange the BPO by sending your own CMA and if necessary escalating to supervisors and executives (a number of them are in this blog trail) to get a new BPO ordered. BOA will typically resist since a new one would be within the 90 day acceptable window (it does cost money to do them) for a BPO but be persistent. A good BOA negotiator will recognize the problem,
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Permalink Reply by Jeff Payne on
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Your agent needs to get aggressive and escalate the file within Equator. Provide the real comparables to Bank of America to show them that the value that they have is wrong. Some Bank of America employees are still using automated values from www.bankofamerica.cyberhomes.com Go to that site and type in your address and see if that is where they are coming up with the value. Don't stop fighting them.
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Brigitte Powell said:Same thing happened to me on my GMAC Short Sale, Had an offer of 315,000 and they would not accept any less than 340,000. The contract died, I changed the listing in MLS to 340,000 and here it sits. No lookers, no offers. I think it has to do with the investors. There has been no letter of foreclosure to my Sellers, so there seems to be a money issue somewhere. i personally don't know what the process is for investors to ok a foreclosure. If anyone does, enlighten me. I was told the investors had to come up with money??? I don't understand that.
Just curious on this one, did you get a foreclosure notice? -
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No, not in foreclosure yet.
RG said:
Brigitte Powell said:Same thing happened to me on my GMAC Short Sale, Had an offer of 315,000 and they would not accept any less than 340,000. The contract died, I changed the listing in MLS to 340,000 and here it sits. No lookers, no offers. I think it has to do with the investors. There has been no letter of foreclosure to my Sellers, so there seems to be a money issue somewhere. i personally don't know what the process is for investors to ok a foreclosure. If anyone does, enlighten me. I was told the investors had to come up with money??? I don't understand that.
Just curious on this one, did you get a foreclosure notice? -
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Your agent needs to escalate the issue to upper management. All of the comments here are correct. BoA relies on opinions of value (BPO) that are only as good as the agent doing them. It should take 2 to 3 hours to do a BPO unless there are abundant comparable sales to look for the best comparable sales to use. There are agents doing 10 or MORE of these a day, so the other agent is correct -- many times the valuation is not thoughtful or correct.
The problem is that BoA WANTS the higher BPO's because they are trying to get as much return as possible. Your agent needs to prove that showings have virtually stopped since the price increase. If your market is still declining, she needs to present that as well.
Also, I wonder what would happen on a pre-approved short sale, if you still have control of the listing? Ordinarily, the agent could start reducing the price on the MLS by $10,000 every two weeks until you start getting showings and another offer. I have not seen a BoA pre-approved short sale form -- is the listing agreement between the agent and the bank, or between you and the agent? That is crux of the matter. If you have control of the listing and the pre-approved offer does not take that away from you, you and your agent can create a paper trail of price reductions to support a lower offer.
If the agent is not a broker, have her take the matter to her broker for some ideas? Good luck. It is frustrating to deal with BoA for certain... -
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Thanks Lisa!!! This is great information.
Lisa Lucas, CRS, CDPE said:Your agent needs to escalate the issue to upper management. All of the comments here are correct. BoA relies on opinions of value (BPO) that are only as good as the agent doing them. It should take 2 to 3 hours to do a BPO unless there are abundant comparable sales to look for the best comparable sales to use. There are agents doing 10 or MORE of these a day, so the other agent is correct -- many times the valuation is not thoughtful or correct.
The problem is that BoA WANTS the higher BPO's because they are trying to get as much return as possible. Your agent needs to prove that showings have virtually stopped since the price increase. If your market is still declining, she needs to present that as well.
Also, I wonder what would happen on a pre-approved short sale, if you still have control of the listing? Ordinarily, the agent could start reducing the price on the MLS by $10,000 every two weeks until you start getting showings and another offer. I have not seen a BoA pre-approved short sale form -- is the listing agreement between the agent and the bank, or between you and the agent? That is crux of the matter. If you have control of the listing and the pre-approved offer does not take that away from you, you and your agent can create a paper trail of price reductions to support a lower offer.
If the agent is not a broker, have her take the matter to her broker for some ideas? Good luck. It is frustrating to deal with BoA for certain... -
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The bank/servicer or investors CAN set the price of what they will accept. Problem is ....getting that price. There still is an unknown factor here. WHY don't these folks get a foreclosure letter??? There is a monetary explanation for this, but I don't know what it is and how it works. They are not doing it because they WANT to be difficult....they have a good reason....we just don't know what it is.
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Jeff, You are the person who may know this strategy.
I know you have seen my posts regarding GMAC and a must have price of 340,000. I have proven to them that the competition (presently on the market) puts them behind the 8ball. The SOLDs prove that 340,000 is not a viable figure. Yet they say the servicer wants 340,000...the MI co wants 7,000 from the Seller (which is not going to happen)...BUT most important of all.....the Seller has not received a foreclosure notice, and I have had the listing since December 2009......so, for ...a year...they are not foreclosing???? -
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