Three Short Sale Offers -Some Buyers Agents Don't Get It!!
This week I had three offers on short sales. Despite my MLS instructions to allow 120 days for approval, each has a 30-45 day closing! In addition, each asked for ALL THE CLOSING COSTS to be paid by Bank of America. BOFA WILL NOT PAY ALL CLOSING COSTS. When I told one of the agents I had probably sold 100 BOFA short sales, and they DON'T do that, she emails me BOFA brochure that states:
"Frequently Asked Questions"
How flexible is Bank of America in paying closing costs?
Bank of America allows for the payment from sale proceeds of those closing costs that traditionally
are paid by the seller (i.e. commissions, appraisals, taxes, etc.). Bank of America will, in some
circumstances, allow closing costs that traditionally are paid by the buyer to be paid out of sale
proceeds. All costs are included when Bank of America considers whether to accept a Short Sale offer.
Of course, I know from PERSONAL EXPERIENCE this is NOT the case, and I've told her, but her buyers refuse to adjust closing costs.
How do you handle buyer agents who just don't "get it"?
"Frequently Asked Questions"
How flexible is Bank of America in paying closing costs?
Bank of America allows for the payment from sale proceeds of those closing costs that traditionally
are paid by the seller (i.e. commissions, appraisals, taxes, etc.). Bank of America will, in some
circumstances, allow closing costs that traditionally are paid by the buyer to be paid out of sale
proceeds. All costs are included when Bank of America considers whether to accept a Short Sale offer.
Of course, I know from PERSONAL EXPERIENCE this is NOT the case, and I've told her, but her buyers refuse to adjust closing costs.
How do you handle buyer agents who just don't "get it"?
Replies to This Discussion
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Permalink Reply by Clayton Bonjean on
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Wendy,
I commend you for educating your buyer's agents on the front end, it forces them to educate their buyers. The main issue with short sales is long approval times and by requiring the 90 - 120 approval time line your are weeding out alot of "Buyer Walked" situations and this helps everyone involved.
I now write up every short sale offer with language requiring the seller to pay doc stamps on the deed (standard) and seller pays title insurance and related expenses (not always standard). This has not been a problem yet. I avoid mortgage related expenses because they can change and blow a deal at the last minute when the lender refuses them. I like to keep it very simple because confusion seems to slow things down.
Clayton
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Permalink Reply by Wendy Rulnick on
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Clayton - But YOU are GOOD!!! I really enjoy working with you- very professional! For those who don't know, Clayton and I have a short sale deal going, he brought the buyer!
Clayton Bonjean said:Wendy,
I commend you for educating your buyer's agents on the front end, it forces them to educate their buyers. The main issue with short sales is long approval times and by requiring the 90 - 120 approval time line your are weeding out alot of "Buyer Walked" situations and this helps everyone involved.
I now write up every short sale offer with language requiring the seller to pay doc stamps on the deed (standard) and seller pays title insurance and related expenses (not always standard). This has not been a problem yet. I avoid mortgage related expenses because they can change and blow a deal at the last minute when the lender refuses them. I like to keep it very simple because confusion seems to slow things down.
Clayton
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Permalink Reply by Kathy Batterton on
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I know some banks are giving a concession and some aren't. I just wrote an offer on a BofA and asked for $6500 toward buyer closing costs. Will BofA not just look at the bottom line on this? Help me Wendy!
My question would be "why are all the banks allowing this on foreclosures but not on short sales? Doesn't make sense to me....Any answers out there?
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Permalink Reply by Joshua Holt on
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I talk with my seller, explain the situation, and let them choose. Most of my sellers will just wait for another offer.
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Permalink Reply by Janine Margaret Nielsen on
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A majority of my short sales have been with B of A . As your fully submitted file waits with a very clean and concise HUD1, they use the time to change what they will and will not pay. I have had to change a HUD1 3x with the same buyer and am still waiting for approval. 4 months into this process and the HOA goes to collections(they are being sent sooner and sooner to collections in so. cal.), I've stripped the HUD1 to nil hoping to get B of A to pay the ATTY. fee for the HOA. I will be an agent that refuses to back down with this atrocious Lender. Anyone else on board?
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I think you are rather mistaken. I've dealt with and have heard of many others who've dealt with Bank of America on short sales and have in about 70% of the cases succeeded in getting them to cover buyer closing costs or most of it.
It all depends on how "deep" the short sale is and what the bottom line is. The bank will evaluate on overall cost - not necessarily any one factor like closing costs, etc.
Besides, it's in the seller's best interest to accept a reasonable offer - let the bank renegotiate later if they find the buyer's offer to cover closing costs to be objectionable. I would recommend leaving the offer with the buyer's closing costs covered (to reduce the risk of the offer failing or rejecting it prematurely) then negotiate if necessary with the bank and buyer later on. That's been working out really well in Vegas.
Andy
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