Replies to This Discussion

Permalink Reply by Smitty on November 11, 2010 at 4:39am

You can sign the extension now....so there is no lapse. I have my sellers and buyers exend BEFORE the contract is up if I'm in the middle of negotiations.

I would hope the listing agent doesn't put in an additional offer after expiration. Especially when she knows you want it and are doing your best to work with BOA. I don't think it's in the best interest of the seller to throw another offer in at this point when it does seem your close. It would likely stall things a bit for the seller.

Get the extension signed now so there is no lapse. That extension will go to BOA as well. They will likely be looking for it soon or looking for another buyer, so get it done.

Permalink Reply by Joan Psarros, CDPE, CRS, SFR on November 11, 2010 at 5:20am

Hi, You should ask your Realtor how she is working on this deal? Is she a seller's agent? You mentioned that she has other offers. So, you need to ask if she has a fiduciary relationship with the seller . I am not sure New Jersey law. Also, does she present more than one offer to the bank. If she only puts in one offer at a time to the bank signing an addendum would protect you. The way I think it should be handled is only one offer at a time if the sellers have signed the offer or addendum extending the time to perform. As far as negotiating down the contribution to BOA was a very strange way. BOA is not easy to work with and after having an approval I would have advised taking it and not negotiate. It wasn't that much and now you open up to more. No matter how small of a change it means possibly a new appraisal and now you open more cans of worms. Hopefully, all will work out.

Permalink Reply by Mike Horton on November 11, 2010 at 5:37am

The higher price could well have come from the investor taking a look at a new BPO if the old one was more than 90 days old. If this showed a higher evaluation then BOA would come back with a higher counter. You may want to provide comps of the property that would support your offer. Remember that BOA is only approving the net that they will receive and not the contract, so you have to be able to show them that the net your contract is offering is "best they can get". It does not sound as if you have your own representation so you are working at a disadvantage. I would be worried at this point that you are going to loose the home over $1500 since the investor has a new higher evaluation to work with and they are thinking that the net increase would be higher.

Permalink Reply by Nancy M. on November 11, 2010 at 5:38am

Joan, what am I hoping to find out if I ask the question if she is a seller's agent? She hasn't told the bank of the other offers and said she will not present them. We have sent her an email today asking for the addendum. We are starting to feel like this house which we really want, is slipping away from us and there are sharks out there waiting for us to loose it!
Thanks for the insight!

Permalink Reply by Nancy M. on November 11, 2010 at 6:00am

The BPO was done about a month ago and came in the 285 range. Apparently its now gone to the investor. Will they go to the investor before reaching an agreement with the buyer?

Permalink Reply by Mike Horton on November 11, 2010 at 7:13am

Usually they have guidlines from the investor that they will follow in preparing the package to submit to the investor. They don't normally submit to the investor unless they have a deal and complete financial prep for them to look at. Also, depending on who the investor is (e.g. fannie mae) they do not allow the BPO to be disclosed although it does happen. I would still send in a CMA if it supports your price point. You may ask the listing agent or whom ever is authorized to negotiate with the lender to try and appeal to a supervisor to return to the original offer.