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Short Sighted Seller - Bank wants $10K Cash Contribution to release $500K deficiency!

Posted by Liane Jamason on October 4, 2011 at 7:45am in Short Sale Discussions
I have a BOA 1st and 2nd short sale.  2nd released deficiency completely, and the 1st will release with a $10K cash contribution from the Seller.  Seller is freaking out and says they don't have $10K but the bank can see they have 2 credit cards with high limits.  To me when you have $500K in debt, that seems like a pretty good deal, no?  How to convince a Seller not to be so short sighted and take their deal?  I rarely see BOA agree to release - do you guys?

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Tags: america, bank, cash, contribution, deficiency, of, sale, short
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Replies

  • Richard October 5, 2011 at 6:23am

    Liane,

     

    Great effort!  You've done your job.  If the seller can't see that's a sweet deal then, probably nothing else will.  It's sad you've put in a great effort for an unappreciative seller.  They probably used the house as a cash ATM.  Like Rodney Dangerfield say " I get no respect ".  Let them fry!  There are other people out there more deserving.

  • cesar llanes October 5, 2011 at 5:28am
    I got this same experience with Chase because they saw sellers' bank account lots of cash. I suggest you discuss among your seller, buyer, both agents and even BOA to contribute on this cash contribution.
  • Cody Lampariello October 5, 2011 at 3:16am

    Thats tough my experience wth BoA is that you can pretty much always get a full satisfaction it just depends on how much it costs. Many times if you just counter at zero to their request they will accept and move forward but if not you just have to fight them as low as you can.

    Without knowing how much back and forth there has been regading the cash contribution its hard to determine what my next step would be. See if you can get your seller to commit to a lesser amount and then push back and forth with BoA until you meet somewhere in the middle.

    People are crazy though, I had a client short selling three properties with about 2 million in his non-qualified retirement account. He got upset because he needed to pay 10K for full satisfaction. I was a little dumbfounded, he finally did when I told him either do it or I'm not working on your files anymore.

  • Smitty October 4, 2011 at 11:39am

    We just paid $25,000 contribution for a full deficiency release on a 1 and 1/4 million dollar property.  It was a contribution from the buyer and myself.  The seller was a subborn A@$.  Anyways, I had told the seller up front that he may likely have to contribute.  We went back and forth when we got the approval and he wasn't contributing, NOR letting it close with the deficiency language,  I was getting a good commission check so between the buyer and I we came up with the funds.

    I was PISSED.  Because after it closed I found out the buyer bought an investment property dead in the middle of my negotiations, but somehow cried poor. 

     

    Somedays it's not worth it.

     

    You really have to lay it on the line.  If they don't sign it, then tell them the alternative is foreclosure and that's it.  Can the buyer contribute?  Maybe the buyer is willing to come up $5000 and the seller can do $5000

     

    • Liane Jamason > Smitty October 4, 2011 at 11:51am
      I think you mean the Seller bought an investment property?  Wow.  I'm surprised they let you contribute.  Yeah on this one the negotiator said "I can see they have 2 credit cards with high limits and low balances, they can just put it on there".  Oh yeah - let's go ahead and put them into more debt and get them back into the same situation all over again!  *shaking head*
      • Smitty > Liane Jamason October 5, 2011 at 3:39am

        LOL...yes the SELLER did that.  Can  you tell it's still fresh for me?  Anyways, Did BOA specifically ASK for credit card statements?  That's the first I've heard of that. 

         

        It's still too close of a number for me.  I can't believe they aren't willing to fork over the $10,000.  Beg borrow (not steal) to get it, IMO.  It'll be one source of stress gone for them.

        • Liane Jamason > Smitty October 5, 2011 at 3:43am
          They didn't ask for credit card statements, they just pulled their credit and can see balances and limits there.  I have another Seller about to do a short sale that I told about this and she said sheesh maybe I should have my limits lowered!  It's a thought...  Yes I agree, get that $10K, that's a deal.
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