I am the buyer on a short sale in Flordia, we have been moving through this process for a while now and have made it to the investor approval stage. The seller finally got all his paperwork together (which took forever) we submitted to BofA on 1st of March, BofA has moved pretty quickly as expected because they are the only lender and no FHA, HAFA, HELOC, MI or any of that stuff. They are servicing the loan for SLS. Our orginal offer was a little low as we were expecting a counter however BofA's counter came in and it only adjusted some of the closing cost, no big deal, so we accepted. Now it is off to "investor approval". My question is did BofA get input from the investor (SLS) before they countered? How likely is it that SLS will approve the sale? Does the investor ever come back with off the wall requests or counters? I feel we are close to the end but I can't help but worry that the investor could decline the sale or counter with something crazy.
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I have done some more research and found SLS's guidelines for a short sale. They state they will take 71% on a 1st and 2-19% on 2nd. What is the 71% of, the BPO?
Interesting Rick, where did you find this info?
As you know a buyer has a lot of time to waste during a short sale so I kept myself occupied with research. I started with the property appraiser website and veiwed the sellers closing papers which listed American Express Mortgage as the mortgage holder. I researched them to find out they went out of business and must have sold the loan. I then went to the MERS website (recently made public) and did a search on the address of the property. I received 4 results based on the street number and name. One of those matched the date on the original closing papers so I have to assume that is the right one. That is how I found out who the investor was. I then researched them and found the following site, listed below, which gave me some specifics. I realize much of this could be out of date or incorrect but at least I have some idea how these guys work. I also found out from reviews that SLS is easier to work with as a first rather than a second. I may be way off base but everything seems to have added up.
http://seattleshortsales.com/lender/sls
This is what SLS took on this particular transaction. I'd use it as a Guide, not a Model for future transactions.
If a property value comes in at $200,000 X 71% their minimum net would need to be $142,000 (BPO = Broker Price Opinion)
BOA has a set of guidelines they go by and if they meet the guidelines that SLS set, then they send it off to them for approval. After that, it's anyone's guess. The investor could deny, counter, etc. That's the black hole. No one really knows the entirety of the investor guidelines or what the investor will or won't do when they get the file.
It's sounds promising for you on the surface, but I never believe a thing until I see it in writing.
Good luck.