Is BofA's new Short Sale Cooperative program worth it? What are the pros and cons for my client/seller? Will they get their 2500 dollars? Suppose to mimic HAFA, does it? Will it save time?
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Valuation seems to be a problem lately. I now have 4 overpriced short sales due to high appraisals and valuations. Just had a co-op value to come back $23K more than current list price which I was about to lower after 45 days of not much activity. (oh and at that price it was not a short sale!!!) And seller already moved so not going to get the cash. Seller agreed only because it was looking like we had to lower into short sale range to get a buyer.
Chris - The big pro is simplicity - they don't have to provide financials. Note - the seller does not always get cash back. On Fannie Mae's, where the original loan was taken out for second home or investment property, they've stopped giving the seller a credit. I was told this two weeks ago. Of course, the policy changes frequently. Note #2 - It's not necessarily a quicker process, and there can be confusion between BOFA and the third party vendor, etc.
Approval in 10 days has not been the case, but so far, not unreasonable long either. BofA cannot ensure 10 day approval, as Investor/Insurer approval may be required.
My experience so far is positive on BofA co-op. I've completed perhaps three, and I have two in process. My major concern was the valuation, and the statement that the list price would be lowered if an offer was not received. But, so far, "appraised value" has not caused a property to become stuck at a price that is clearly above market value, and one was indeed lowered, as advertised.
So far, so good, basically, at least for these five properties.
Thanks, Michael: That was my main concern regarding their stipulation that an appraisal must be done first, then the listing. I've already produced a buyer, and I know my value is good. From what the NDS rep told me, I can simply put my buyer on the back burner, then have the appraisal done, when the value is determined, simply bring the buyer's offer back to the table and start over. Another one of their selling points was that this coop process would approve in 10 days instead of the 3-4 weeks. Did you find this to be the case?
Thanks.