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Deed In Lieu Approved by BOA after seller signs contract for SS

Posted by Brenda Mull on March 24, 2011 at 12:37pm in Short Sale Discussions

Just curious, I have a listing where an offer was presented and signed yesterday by the seller and returned back to buyer/ & buyers agent.  Today, I get a call from seller that BOA has approved a deed in lieu on the property and the property needs to be vacated within two weeks.  Buyer wants to buy the property.  I do not want to jeopardize the dil, can I still contact BoA to see if they have interest in the offer on the table.  Technically, the seller is withdrawing the signed offer (contingent on ss approval)  AND technically they are nicely withdrawing the listing effective immediately so they can do their dil.  I have entered seller info/authorizatio in Equator but not the offer.  Should I cancel equator at sellers request.  Can I contact the bank to negotiate offer AFTER the deed in lieu is complete or walk away, Add it up to another part of dealing with short sales sometimes you dont get to work the deal.

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Replies

  • Rain Silverhawk April 15, 2011 at 3:31pm
    Hi This could be a hard one with BofA, but I am currently going through a similar one.  The deed in lieu arrived 2 days after the offer was received.  I was able to work with the negotiator to become the listing agent get my commission approval and with the bank honoring the short sale that was on the table.  We had to redo the listing contracts, the offer was redone so that it bore the bank signatures and this this changed from a short sale to an reo in every aspect.  Once the bank approves the DIL it is hard to get them to go back to a short sale.  Your best bet is to try and wrangle negotiations with the bank as the listing agent.  The title company did have to wait for the DIL to be recorded and does have to wait for the full re-conveyance to come through which extended our close of escrow but everything else went relatively smoothly.
  • Elaine Cooper March 27, 2011 at 6:52am

    I had something similar to this happen to me.   The seller's BK attorney advised the seller not to do a SS.  I had spent a lot of time with a gentlemen at Wells Fargo helping him as their had been a error in recording the liens on the property.  When it went back to bank this gentlemen referred me to the gal handling the sale for the bank - it was a SBA loan and handled out of Reno, NV and the gal had not contact  in California to sell the house.  So I stayed in touch with the two of them and then I got the listing as a REO.    I thought it was my foot in the door....but proved difficult as it was a one off....SBA loan and typically they don't turn into REO's......But at least I got paid for all my hardwork.

    Good luck with it.  One thing you might want to tell your seller is that a DIL can hurt the credit as much or as long as a foreclosure does.  And that a short sale in most scenario's doesn't last as long on the credit report.

  • Bryant Tutas March 25, 2011 at 6:57am
    Hi Brenda you can contact the lender after the DIL has been completed. But you are right not to do anything to interfere with this process as this time.
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