Any one had the situation with a preapproved co-op BOA short sale where the investor is Fannie mae and the property is over priced and asset manager /negotiator says that Fannie Mae doesn't have a marketing provision to lower the price every 21 days if no offers have been received? Property on market 8 months, limited showings due to property not having any updates even though it is in great conditions. Property is over priced by 20-30k. I have attached a pdf with copies of the asset manager's most recent emails to me on the price. She actually had me lower the price to 245k about 6 weeks ago but still over priced and no offers.
Would greatly appreciate any insights I can get on this one.
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That is the biggest problem with pre-approved Short Sales. I would suggest listing the property at your est. value before even initiating the pre-approval. This way you can feel out the market and prove to the BPO Agent that the value should be lower. At this point I would try to get a new BPO done, or wait till the old one is expired.
There is a little more to this. we did have one buyer in april that offered 233k. after we had it negotiated and the asset manager said this number would work back in May. Then a 2nd BPO was done because the first one expired before we got the approval letter. The asset manager then came back that the investor wanted 250k again. She said to get the buyer to come up to the 250k and then we can renegotiate when the appraisal comes in lower. Buyer refused to play their game and walked. Very difficult to get someone to offer a price that cannot be substantiated with comps. I have also been told that Fannie and Freddie are not participating in the Valuation Dispute process that BOA has now. This weekend We did receive another offer at market value which the sellers have signed and if they counter it again, then I will go to the Help Desk directly. If I cant get anywhere with them either, I may have to discuss with the seller the option that Wendy reminded me of which is to decline the co-op short sale and go with a traditional.
thanks!!
A) Ask them how logically a value could increase in a declining market.
B) Provide your own BPO
C) Ask when the BPO will expire (and make sure you give the BPO Agent personal VIP access to the property .. get it?)
I did all three things you are stating here. The first BPO the agent was very familiar with the area, took my comps and said my pricing was within market value. The 2nd BPO was done my an agent I know well and I have never had a short sale fall apart where he has done the BPO. The 2nd BPO will expire around the end of September. I am stuck with negotiator that is thinking like a seller in a seller's market.
Here is one option for you, Irene. Does the seller *have* to stay in the coop program because he wants a cash credit at closing? If it's more important for him to just move on with his life, have him opt out of the Bank of America coop program. Then you, the market expert, control the price, get a reasonable offer, and pursue traditional short sale. That will happen much more quickly than your 8 month saga.
Wendy, at this point his biggest concern is waiver of deficiency. Would Fannie Mae waive the deficiency if he goes thru a traditional short sale? Thanks!!
Wendy,
thank you so much for your help!