You have GOT to be kidding me- what BofA wants from short sale buyers now

So according to my negotiator at Service Link, BofA has a brand new guideline: All short sale buyers must provide proof of funds for Earnest Money & Down Payment at the time we submit the offer. (in Oregon EM is not deposited until we have ss approval).

 

I am beginning to think short sales will soon be a thing of the past..between Fannie Mae's absurdly bloated valuations and BofA roadblocks get me some Xanax.  UGH

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Personally I wouldn't have my seller accept a deal if the buyer could not provide deposit and proof of funds. The lenders are tired of buyers not committing to the deal.

I agree with this requirement from BofA.

The lenders are tired of buyers not committing to the deal.

The buyers are tired of the nonsense.

this makes a lot of sense to me,  My team only takes an offer with a minimum of $5K escrow deposit.  and of course proof of funds. there is no reason to work in a short sale negotiations without a commited buyer. very simple.

Wally dont you consider a valid contract a committed buyer?

Do you give your BA a 3rd party authorization?

How do you negotiate a short sale Im curious?

I no longer consider a valid contract a committed buyer these days since they have a way of backing out all of the time when they get tired of waiting for the approval....we also only take offers with an earnest money deposit put into escrow and POF in hand.....it is so easy to forget that these transactions are actually regular transactions except that the seller needs approval from the bank to sell for less than is owed... therefore, earnest money and POF's and lender approval letter should always be in place....

Well then Judi its still a valid contract. Why do they get tired of waiting for an approval? Thats the real issue. Theyre not backing out for no reason. Theyre tired of the nonsense. And without adequate and accurate communication to the buyer and BA thats what it is. Nonsense.

Too much time lapses and thats because someone isnt doing their job. Thats what a buyer feels and sees.

 

I do agree with that Bill... I do not practice my business that way however.....I am very forthcoming to all involved with everything that is going on in the transaction. I send out emails or phone calls each week with updates, sometimes more often if something happens.. I do my best to get all of the timing that the bank sets to get these completed and I give that information to all parties so they know what to expect.....I have these times posted on my office wall and when I see a time getting close I am on the phone trying to make sure that it happens....if not...I escalate the file to a manager right away.....believe me when I tell you that any of us who have been doing this for a while are on it everyday.....we have a duty to our sellers and to the transaction to get it closed....as someone else stated here, foreclosure proceedings are not halted until that approval is given by the bank so we totally understand that time is of the essence in these......I think, from reading through your posts here, that your frustration is really with not getting the proper information from the selling agents and this is a problem....when I have a buyer involved in one of these, I am on the phone with the selling agent at least once a week to get an update...I never wait for them to call or email me....trust me when I tell you that these SS are 1000's times easier these days than they were just a few short years ago....we used to have issues starting with the banks losing file after file when we would submit for short sale and then once in the middle of the negotiations, they would convientently lose a piece of paper or two and would reject the file......these transactions have been super crazy to do in the past and are getting better even though we still have many issues to deal with.....if you find a good, seasoned SS agent, you find a good thing because we have been through it all and know how to get these done...

Im speaking from a buyers position.

If you made what you describe a standard of practice and held all accountable youd have far less trouble.

As a cash buyer there is no excuse whatsoever for the time it takes and there are no excuses whatsoever between a title company, the sellers agent and mine. None.

I have been involved in several short sale and the communocation with the SA in each one was pathetic for no reason.

 

I am sorry to hear that but your agent is the one that needs to be working on your behalf and should not be waiting for a selling agents to give information but should be going after it for you.....these do take time, sometimes more time than others. It can be for all sorts of reasons.... you have the right to know what those reasons are and your agent is the one who needs to get that information for you. That is what they are getting paid for..I do not think that what I do is uncommon among those who do short sales a lot. We all have found that information is very important and we all dig until we get it and then we get things done...

My agent doesnt have 3rd party authorization. Hes essentially powerless.

. It can be for all sorts of reasons.... you have the right to know what those reasons are and your agent is the one who needs to get that information for you.

Good luck you have a SA and a title company. Negotiating? Please.

Doing nothing but waiting. Thats the way it is.

The BPO went out before Christmas and we were notified the end of January of the price they wanted almost 25K above our offer and 20 above list.

Sing me a sad song Buck. My agent knows I know whats up and I frequently remind him of how much screaming I save him daily.

And you people put up with their nonsense.

 

I can totally relate to the crazy counter offer. We are all seeing this right now. We are fighting these valuations as hard as we can and we, as a group, have already put forth a petition to fight this issue on a national level. I have contested 2 values so far this year and have had the banks back off on crazy values. I had one that had a value of $148,000, offer at $150,000 and bank countered at $185,000. I contested the value and by the end of that day the bank came down to $153,000. It takes a lot of work to get these done and every time a new monkey wrench is thrown at us, we have to fight back with the negotiator. This is what we do as SA doing a Short Sale.

As I said I feel for the seller. The SA got them an offer and may save a foreclosure and some incentives I dont know. I dont blame anyone he needed an offer. The place needs work and he estmated how much and thats 20 is the difference in his valuation and the bank. Its no big deal.

I know what you do. Whats right is whats right and good for you.

Its not fair or right to unleash this nonsense on innocent home buyers who can only afford a SS. There are no rules in the game other than the contract and if you want the house you have to humor them. Its ludicrous. Every major industry has rules and timelines but you guys have to fly by the seat of your pants. I know its a feeling of accomplishment when you when but you put buyers through hell for what? Make some rules even if theyre only local.

 

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