Replies to This Discussion

Permalink Reply by Jake Bowers on July 7, 2010 at 9:57am

I've been reading sites and posts to learn more on the BoA short sale negotiation process, as we are close to getting to the negotiation phases of a short sale offer. In reading the agent training .pdf from BoA on using the Equator system (found online), it states in two charts in the early pages of the training that negotiation of the closing costs is a preliminary step of the negotiations, that is done first as they prepare to present the whole package offer to the investors. So this situation of Melody's seems to fit right in with what BoA is saying in agent training.

This 2 step process of negotiating closing cost issues first, and THEN sale price, is not intuitively obvious to most of us. When I first read this training doc, this nuance slipped past me, but I re-read it once I saw Melody's complaint. My suggestion is to look up this document and read it thoroughly, especially if you are an agent. Armed with this info, you can advise your buyers to be expecting and prepared for this to occur with a BoA short sale.

Here's hoping we make it thourgh this ordeal ourselves! I've learned a lot here, so thanks to all.

Permalink Reply by George Isaacs on August 20, 2010 at 10:56am

Most Lenders require the short sale agreement between them and the seller to include the stipulation that the home is being sold "as is" and they will not participate in any repairs or costs associated with repairs.

S.A. said:

Oh, it's like bait and switch!

I'm a buyer, too, and I am afraid of the same thing to happen to me! I've been very firm and clear to my agent that I would walk even if the countered price is $10. My lender (BoA) got appraisal which came in at $250k (exactly the $$ I offered); good thing my lender waived appraisal fee since the short sale bank is also BoA. With the money I didn't have to spend, I went ahead and ordered inspections, and it appears that I will have to pay quite a bit of repair costs: all electric, plumbing and hvac are improperly done DIY by the seller that need to be fixed, and the roof needs to be replaced. What's more, the house has termite damages, which was known to the seller prior to the listing. Before I put in my offer, the listing agent told me that she'd addressed the termite issue in the SS package and initiated negotiation with the lender to pay for the treatment and repairs (fingers crossed but in fact, BoA ordered and paid for the pest control inspection!)

Besides, I am getting estimates on necessary repairs tomorrow to avoid a heart attack at closing; I'm anxious to find out how much the total will become. If the estimate of repair comes in high and BoA (Seller's side) counters again for any extra $$ from me, I am so willing to walk.

At this time, according to both listing/my agents, bank has countered, but listing agent told my agent that there was nothing for me to do at the time. It appears that the listing agent countered back to BoA on behalf of seller (don't know what it was). We are currently waiting to hear back from BoA. I hope they won't close the file or counter to make me come up with extra $$!

My question - would the inspection report and repair estimates help to combat the counter offer, if that ever comes?

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