I have had an offer in on a short sale since Nov. 17th. The listing price was $650,000 and our offer was for full price. The comps in the area show that the price is right on...if not even a little over market. We heard on Feb. 14th that there was a verbal approval from B of A. but we have not seen anything in writing. My realtor is not very experienced with short sales and my questions are these....We know the sellers owe back HOA dues of at least $5000 that she said she would not pay for in the contract. We did not specify if we would pay for it but since our offer is so strong can we ask B of A to cover it even though we did not do so in our original offer? DO we have a right to see the BPO or does B of A have no obligation to show it to us? Is it normally to have a verbal approval but then to see nothing in writing for 2 weeks? I feel like our agent sort of steered us to make a high offer when we probably could have gotten the property for less. IF the B of A price opinion came in lower than our offer would they just be happy and accept our offer? If they do come back and accept do we then have any bargaining power as far as closing costs and the HOA dues or did we blow it by not asking for it in our original offer. I believe the seller is asking for HAFA assistance... does that usually make these things take longer?....At this point I almost wish the house would go to auction and we could just lowball it and pay cash for it!! Any advice you all have would be most appreciated!!!
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LOL. What Wendy said, and BTW, the property going to auction would mean that most likely, you would pay a higher price for it. The staring bid is usually the lenders credit bid, and if it isn't, then the amateurs who love auctions would quickly outbid you. Short sales are worth being patient if all you are after is price.
Joseph, great point. Too many times people think that it is simple to just "buy it at auction" In my area, rarely does a property sell a the county clerks auction with the exception of the homes that the bank does not want back, the homes that are more of a liability than an asset. Then the amatuers buy them for $100 and find out that there are liens and title issues :)
. The listing price was $650,000 and our offer was for full price. List price has nothing to do with what BOFA feels property is worth. The comps in the area show that the price is right on...if not even a little over market. We heard on Feb. 14th that there was a verbal approval from B of A. but we have not seen anything in writing. That's odd, unless the negotiator at BOFA said a letter was going to be issued, and just hadn't logistically completed the document. My realtor is not very experienced with short sales and my questions are these....We know the sellers owe back HOA dues of at least $5000 that she said she would not pay for in the contract. We did not specify if we would pay for it but since our offer is so strong can we ask B of A to cover it even though we did not do so in our original offer? The HOA dues would have (or should have) been included in the preliminary settlement (HUD) figures given to BOFA.DO we have a right to see the BPO or does B of A have no obligation to show it to us? You don't have a "right" to see the BPO. Is it normally to have a verbal approval but then to see nothing in writing for 2 weeks? No, it is not normal. I feel like our agent sort of steered us to make a high offer when we probably could have gotten the property for less. Just because an initial offer (or any offer) was accepted, it does not mean you overpaid. A good listing agent will recommend a price that may likely be accepted by the short sale lender. IF the B of A price opinion came in lower than our offer would they just be happy and accept our offer? There are other variables, closing costs, seller qualifications, etc. If they do come back and accept do we then have any bargaining power as far as closing costs and the HOA dues or did we blow it by not asking for it in our original offer. If there is an approval issued, it should address the closing costs and HOA already. I believe the seller is asking for HAFA assistance... does that usually make these things take longer?....Yes. At this point I almost wish the house would go to auction and we could just lowball it and pay cash for it!! Any advice you all have would be most appreciated!!! Have your agent check in with the listing agent for another update, and chill out :)
Thanks for your quick response....Believe me we have been chill and have only started getting impatient when we were told we had the verbal approval and that we should get our loan in order asap....which we have. If the Bof A approval says they will not pay for the HOA can we counter them and ask for that at that point???
Kristen - This negotiating should already be going on behind the scenes. If BOFA doesn't agree to pay all of it, some associations agree to accept less in light of getting a new paying homeowner. Ask your agent to ask if it's been addressed, and what the status is.