Promissory Note Counter Offer
I have been working this short sale for 6 months. BofA countered and the original cash buyer walked. I advised the negotiator that I had a new offer at the investor ask of $185k and he closed the file violating BofA's policy of submitting a backup within 5 days. File was transferred to REDC and I was shut out of Equator. I wasn't able to submit the second offer until my seller advised REDC that she was not interested in a Deed in Lieu of Foreclosure. The new offer was submitted, REDC accepted the $185k purchase price and countered asking for a $29k promissory note payable monthly over 72 months.
It's a Fannie Mae loan and it looks like I have two options. Counter the note and/or file a complaint with Fannie. Has anyone had a similar experience? Of course, I only have a couple of days to figure out my strategy and I am open to advice, suggestions, etc. #help
Replies to This Discussion
-
Permalink Reply by Kristy Hamilton on
-
If the Seller cannot afford the repayment option, tell them he cannot. $0 note. - another option.
We have had several files "hard-declined", rather than "soft-declined" and haven't yet found the common factors as to why some negotiators chose one over the other. My first thought is that they are doing this because they can and because they are either sick of the file or me - hoping that is just my insecurity kickin' in. : )
Your Seller can call into BOA to decline the file from the Deed in Lieu, then you should be able to re-initiate in Equator for the short sale.
-
Permalink Reply by Karen Warren on
-
The toughest part about all this is that we do not know their intention. In this case, I believe (not confirmed) that it's the MIP peeps. I would hate to think that it's a new ploy to inflate pricing without showing their dirty deck of cards. I do believe that the BofA negotiator was sick of the file and threw me under the REDC bus. Once, declined in NV, BofA files go to REDC automatically. REDC was a big auctioneer back when all of this started. That biz dried up so I am sceptical of it true motivation. Don't know about you, but I've been doing RE for 14 years and I'm getting tired... :-)
-
-
Good question. Fannie doesn't care that BofA violated it's own policy allowing 5 days to submit a backup, for sure. I've had a brutal day and spent the time that I could thinking about the best strategy. My seller is a 70 year old school teacher retiring June 6th. No assets and no money other than the SS benefit she gets from her deceased husband. No real retirement because she hasn't taught that long. I've decided to bag complaining to the deaf ears at Fannie and will call Harry Reid's office on Monday. Sounds like a story that Harry might get involved in, and I know that he has run interference on occasion. Thanks for the input.
-
-
Hi Karen,
Have you considered sending an e-mail to the CEO and the Executive Office of the President? Take it to Twitter at Bank of America, that helps sometimes.
Hope it all works out for you. Had to see a situation like this, particularly, when it involves Vets, Teachers, The Elderly.
Good Luck.
-
-
That's pretty much what I've decided to do. Read some stuff here from back when and going to offer $500 because that's about all she can afford.
-
-
I'm sort of snickering but not getting cocky. Received a message today from the negotiator via Equator which said "I left you a voicemail about the counter from the investor. They need to have a response back by MOnday so I can advise them, thanks"
Not trying to read much into it, but I take it as a sign of weakness. My best negotiating advise has always been the last one to speak loses.
BTW, I never received a voicemail and documented it in Equator.
-
Permalink Reply by Smitty on
-
You can always counter a prom note or cash contribution. Fannie asked my seller for $3000 cash and we offered $500 and they took it. Last week, I had them ask for $22000 cash or $60000 prom note (my seller has a bit of $$ not a ton, but enough for them to sniff it out) so we countered with $10,000 cash and they accepted.
Honestly it's all about trying to come to a middle ground.
-
-
I had a WF deal close a couple of months ago. The negotiator was smart. He countered my buyer for the exact amount of the 3 months of arrearages so the buyer agreed to pay it (buyer also had money). Negotiator was fair, though. He countered and basically told me where the buyer needed to be at to make the deal stick. Buyer countered on the money. The negotiator promised a quick response, and he wasn't kidding. Had it less than 3 hours. This is the stuff we dream of. Unfortunately, my client doesn't have the resources of either of our clients. I'm lucky because she is a sweeheart and just wants me to receive the commission that I've earned. Doesn't get better than that.
-
-
I am in the same situation with Nation Star, late last year before the end of the debt forgiveness program and after many months in SS dept they said that because the owner was not cooperative and the property was vacant (to which they already started to secure the property and have lawn service etc.) they were either going to foreclose or do a deed in Lieu (NOTE: The owner had moved most of their possessions out of the home however they were there every day checking on the property and cleaning it up and also still had their regular lawn service under contract!)
They sent the Seller information on the Deed in Lieu however when the seller called them they kept putting her off, Once the extension of the program was anounced at the end of the year all of a sudden they were back on track to SS however they countered well above market and wanted the seller to sign a note (which combined and not including the banks junk fess was higher than they owed!) We countered at their price less the note, 2 wks later they sent a SS aproval ltr, 2 weeks later the buyers appraisal came in at about 10% less (where I estimated the market price) They finally told me to speak with Fannie Mae directly to which I submitted the up dated contract and appraisal and it is now in review with them. They don't make it easy, However if enough of us hang in there maybe they will get tired of paying games and start playing nice!
DON'T GIVE UP !!!!
-
-
I don't know about Nation Star but if BofA hard denies a short sale, the file goes to REDC automatically. Like I said originally, BofA has a policy which allows for the submission of a back up offer within 5 days of the denial. The negotiator shut me out. I complained and, of course, it fell on deaf ears. This was before Fannie opened up it's so-called 'complaint department.'
-
Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
-
Obviously you're not in CA as any Cash or Promissory Note as a condition of short sale approval is illegal in CA. Although, Nationstar told me the other day they would be looking for a Promissory Note on one of my files. I let the rep tell me the whole story and then I told her two things; 1) It is illegal in CA to request / require a Promissory Note and 2) I reminded her the call was being recorded (by me).
She suddenly hung up.
-
-
I didn't know that about Cali. I'm in Las Vegas and the NV anti-deficiency statute that exists is limited to foreclosures.
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons