Seller refuses to fill out financial information

I just picked up a property that is going to auction in 90 days. Bank of America holds the mortgage.  I have a buyer who is interested in this home.  The property was listed but is off the market.  I contacted the seller about the possibility of doing a short sale on the property and that I have a buyer.  I sent him a package of forms to get this going so I can talk to the bank and that I have the package put together.  I sent him the forms to fill out and I get this response:

"I never agreed to fill out a financial worksheet, submit personal financial documents, or tax returns. And I have no intention of ever submitting such personal documents. This is not negotiable. At the end of the day, Bank of America will do what is best for them - and a short sale trumps an auction."

Do we have a chance in getting this done?

Views: 641

Replies to This Discussion

Permalink Reply by Jeff Payne on January 7, 2011 at 3:04am
Not a chance and I don't really see why you would want to waste time on this one.  Just politely move on to a motivated seller.
Permalink Reply by Mike Sher on January 7, 2011 at 3:29am

Jeanette, 

The seller needs to know that BOA is most likely representing another institution, like fnma, freddie or etc.  NO servicer would take the chance of approving a short sale unless they do their due diligence.  When the borrower says that BOA will do what is in the best interest of BOA, he is right.    So if your home owner loan is in a recourse state like most of us, BOA will consider the borrowers unwillingness to supply financial info as if he is hiding something.  Which then makes him a most likely collectible.  So they will not approve the short sale.  They will foreclose and then pursue the deficiency for the next 7 years.  The servicer would never put their neck out and approve a short sale with out all of the facts.  I would give the seller the same of a attorney and walk away if he will not cooperate.

Permalink Reply by Kathleen Lordbock on January 7, 2011 at 4:05am

Probably not and if your buyer can wait- sign yourself up as the buyer's agent for the auction- help them through the process and get a commission. Research the auction process- some are sold singly and some are packaged off.

This seller is not motivated, maybe never was.

Permalink Reply by Keji Ogunleye on January 7, 2011 at 4:20am
Run , don't  walk on this one.. if the seller is unco-operative you are not going to get anything done.. So don't waste your time.
Permalink Reply by Arthur Chatroo on January 7, 2011 at 4:31am
Bank of America probably does not own the loan.  (They sell off about 90% of their loans Fannie Mae, Freddie Mac and other investors.)  So, in most cases,  they don't suffer the additional loss of a foreclosure vs. a short sale.)   What's worse is that they will likely get more in the way of fees from their loan servicing activities if the property does go to foreclosure - they typically get some or all of the default fees from the proceeds before the investors are paid off.  It also appears that they have their own agenda to "punish" borrowers who in their mind are not deserving of a short sale (as a way of discouraging others to "simply walk away" when they could, in fact, pay.)   So I believe that your chances of getting a short sale approval without supplying the financial information are less than slim to none.  (But perhaps someone has had a different experience.)
Permalink Reply by Bryant Tutas on January 7, 2011 at 5:05am
No seller participation no short sale. This is an easy one. The seller will be foreclosed on.
Permalink Reply by Jeanette Becker on January 7, 2011 at 9:44am
Thanks to all for your input.. This is exactly what I thought about the unmotivated seller.  My buyer is interested and not in a hurry and would be willing to wait for the auction.  Short sales are very time consuming and without the right motivation, the seller is contributing to the problem.  Again, thanks!
Permalink Reply by Joanna Durrant on January 7, 2011 at 12:17pm
At the end of the day, a short sale trumps an auction for the SELLER. He needs to realize he is not calling the shots and will be the one with a foreclosure on his record.  The clock is ticking. It's up to him. If he'd like some help, then you're there.
Permalink Reply by Melissa Polce on January 31, 2011 at 4:44am
had one like this...they opted for an attorney to talk to(for their behalf)...actually turned out pretty good because we get paid without doing any work, which is an unexpected godsend and the seller does not have to give alot of info...
Permalink Reply by The Negotiator on February 11, 2011 at 7:39am
100% agreed. You also just wasted 15 minutes of your time asking us. What did your gut tell you?  :)

Jeff Payne said:
Not a chance and I don't really see why you would want to waste time on this one.  Just politely move on to a motivated seller.
Permalink Reply by Darlene Krause on February 15, 2011 at 9:26am
Not without submitting financial information on the seller.
Permalink Reply by Jeanette Becker on February 17, 2011 at 2:25am
I don't consider it a waste of my time to ask a question on this forum.  I also have a buyer client for this property.  I wanted to get an opinion from others and maybe some insight to getting around the issue.  Obviously there is no  get around and I appreciate all the members of this forum who have taken a few minutes of their time to help confirm my gut feeling and add to the discussion.  Isn't this why we have this forum? :)

The Negotiator said:
100% agreed. You also just wasted 15 minutes of your time asking us. What did your gut tell you?  :)

Jeff Payne said:
Not a chance and I don't really see why you would want to waste time on this one.  Just politely move on to a motivated seller.

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