HAFA Requested short sale - GMAC requesting value set at 50K over value
Working a HAFA requested short sale through Equator (conventional loan; First and second with GMAC, interest only loan + HELOC - $592,000 total owed). Did not wait for bank to set price and began marketing in the MLS at $385,000 - figuring I'd ask for an alternative RASS. Has been on market for 50 days - one price reduction to $375,000 before negotiator came back and told me to list at $450,000. (My client signed a systematic price reduction scheduled every 3 weeks until we get an offer, but I only made one based on bank's response.) Unrealistic list price given the comps and market feedback; have had 15 showings with no offers and property feedback that the home is priced at market value. (Interesting - just had another short sale in same community of a comparable property - with PNC - closed in two months at $380K.) Submitted an elaborately detailed re-evaluation request and included appraisal from the above-mentioned home. Bank came back and reduced to $425,000. I am getting zero interest at $375,000 and feel if we list at $425K we are nailing that coffin shut! Are they squeezing us out of HAFA? My client wanted to do HAFA so she would not have a deficiency judgment and that is the only reason. She is 74, just lost her job because she has gone blind, panicked and was afraid she would be out on the street and moved already (and then contacted me!) so the house is vacant. (Bank has notified her they are changing locks.) She is paying $220 HOA fee each month but not the utilities. So far, I have been paying those and other upkeep - it's a big house and the electric has been over $200 a month even with air set at 85.
I have not had a successful HAFA yet, and have not worked a short sale through GMAC. How long at bank's list price before we can reduce? I know there is a 120 day marketing period. Does that start from when I change MLS to bank's price? Should we forgo HAFA and take our chances in a regular short sale? Does anyone know GMAC's net percentage on conventional loan and whether they will negotiate both first and second together? If I know that even with a high list we might be able to finesse the offer.
To complicate matters I have been approached by an agent with clients that have been forced to move from this subdivision (active 55+) because they have had to take in a grandchild and children are not allowed to live in the community longer than 3 months. They sold their home in this community and they want to rent this house until Dec. when they can move to their new home. Sounds enticing given I am paying upkeep on the property but not sure the ramifications. It does sound like if we market at bank's price we certainly will be in negotiations for four months.
Any experience, advice or feedback would be appreciated. Thanks.
Replies to This Discussion
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Permalink Reply by Pattilynn Guilford on
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If your client needs a place to live - they could rent the property. On the price - I would lower the price to get a contract asap. Banks are not local real estate agents and really do not understand each neighborhood. Seems to me this home should sell for under $350K. Do what you always do as a good agent - price to sell so you can get this sweet lady out of trouble sooner rather than later. Don't overthink it.
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Permalink Reply by Brenda L Wood on
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OK, I've reduced the price and obtained an offer for - you guessed it - $350K. On the market over 60 days, this is first and only offer. BPO came back and negotiator instructed me to change the price to $450K in the MLS. I did not - we would have not gotten any more looks! I submitted a very detailed report/CMA and explanation of comps in this neighborhood which supports an asking price in the range of what I listed, $385,000. Bank came back and magnanimously lowered offer price to $425K and instructed me to change the price in the MLS. I did not, and per my client's instruction reduced price to $350K in the MLS. Finally received an offer at $350K. Submitted through Equator and the negotiator wants me to counter back at $425K. Of course, he will not share BPO that produced this ridiculous price. Buyers are contemplating upping offer tiny fraction but that is it. Are they trying to force us out of HAFA and into a regular short sale? Do they want the property to foreclose? What is the escalation process for GMAC? I am wondering if I should try the escalations at HAFA at [email protected]? Any help out there would be appreciated.
(Side note, Pattilyn, the rental part did not work out...)
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Permalink Reply by Angela Gandolfo on
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I price my short sales according to the market value (I don't discount for "short sale"). I listed a property a few weeks ago, GMAC has been very responsive through emails and equator. I just received a counter that is $50K over our offer - exactly $50K...Is this a new trend Brenda? Not sure where this number came from but as a side note, it is almost EXACTLY what is owed on GMAC's mortgage - WTH?!?!
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Permalink Reply by Tasha Griffin on
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I just had the same thing happen.......at 55k over the contract price..... and another house in the neighborhood with the exact floorplan is going to close in 3 weeks at about 330k with 4% seller concessions! GMAC wants 405k......they are taking some medication that is not prescribed. Did you have any luck fighting this? The house is worth 350k....365k MAX. Yikes.
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I received an offer for $350K, submitted it and the bank countered at $425K. The buyers came back and raised their offer to $360K, but before I could submit the offer through Equator, they withdrew their offer. Back to the drawing board, and it is going to be a long, long haul! So, it's been on the market another two weeks at $350K with no offers. I cannot fathom increasing the price in the MLS to $425K.
Keep me posted on how your sale turns out and I'll do the same!
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Is the investor Fannie Mae on these? It is on mine and I am hearing from many agents that Fannie Mae is instructing banks to counter this way. We have notified the media and are fighting this tooth and nail!
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