Pre offer Short Sale approval

I am starting the process of a short sale with BofA utilizing the new pre offer approval process.  The home is not the sellers primary residence (she is a college student in another area of Florida).  BofA stated that she will have to do a Co-op short sale and referred me to REDC to start the process.

This is already taken up 2 weeks since our first contact with BofA.  REDC had the BPO completed but failed to share the information with me, then asked me to do the listing agreement anyway.  My understanding is that the BofA is to give us the listing price or did I miss something?  

Has anyone had much luck in getting sellers anything above the $2500 with this new program?

Has anyone seen this to be a quicker or streamlined process?  I am not seeing the benefit yet.

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Replies to This Discussion

Permalink Reply by Elvira Quiray on September 18, 2012 at 4:24am

I also got a call from Dignified Transitions Solutions affiliated with Bank of America. It is also a cooperative short sale, they say.  The $2500 incentive was also mentioned. I wonder if this will make the process shorter too. Will post updates.

Permalink Reply by Thomas Zdanowicz on September 18, 2012 at 4:47am

I had success with DTS getting higher than $2,500.  But just once out of 5 sales.  As for listing price, I would wait on the listing.  Once you get the price I think you will be surprised at how competitive it is.  Although I usually am at the appointment with the appraisal pointing out all the bad things about the home so not sure if it is because of them or me with regards to the competitive valuation.  

In my opinion it is definitely quicker and more streamlined.

Permalink Reply by Elvira Quiray on September 18, 2012 at 5:00am

Thanks, Thomas. Good to know of a positive experience. I have two properties I will be working out with DTS. One is already listed, one is not yet listed, so I will wait for their valuation.

Permalink Reply by Donna Graham on September 18, 2012 at 5:40am

I received a HAFA approval in 30 days with pre-offer approval process.  I was surprised how smoothly everything went and the  approved list price was very competitive.

Permalink Reply by Kevin - Greenville, SC on September 18, 2012 at 6:05am

Yes.  I've received several Bank of America Cooperative and HIN Incentives for my Clients both well above $2500.

Permalink Reply by Elvira Quiray on September 18, 2012 at 6:48am

What are the requirements to get more that $2500?

Permalink Reply by Thomas Zdanowicz on September 19, 2012 at 4:43am

I am not exactly sure of the requirements either Elvira.  But like Rebekah they did tell me it is based on the appraisal.  However, I happen to think that it is also based on the amount of time the homeowner has been delinquent.  I think the less they are delinquent the more money they can get.  That is just my assumption based on the one I had that did get extra money.  I would like to get everyone else's opinion on this. Rebekah, do you think there is any chance that may be it?

Permalink Reply by Rebekah Gamble on September 19, 2012 at 5:03am

The seller/borrower has been delinquent for probably over a year.  They have been going back and forth with lawsuit threats by attorneys, ect.  I was thinking BofA wanted to get it off the books and thought we struck gold with a written offer of between $5,000. and $30,000.  This is a let-down to just get $2,500 from the co-op and $2,500 from the HIN.  I responded to the counter offer in Equator with $15,000.00 for seller assistance.  We shall see how that goes over.  I plan on asking for the formulas when I next speak with the negotiator.  I am sure it is a big secret and probably has more to do with how badly they want it off the books.  Whatever I discover, I will be sure to share.

Permalink Reply by Thomas Zdanowicz on September 19, 2012 at 5:17am

Yeah I asked the same thing.  They said it was "proprietary information" haha.  Love that, like its a secret family recipe

Permalink Reply by joe beauchamp on September 19, 2012 at 5:44am

Maybe this point of view can help. They do not want anything off of their books. Every month, the investor pays them a maintenance fee. If they foreclose, they get to charge lots of extra fees then get the property back as REO where they get more monthly maintenance fees plus. Unfortunately, the major investors are fed bailouts that don't care about the "now" investor the taxpayer or anything but getting more bailout money from the fed. A sad system with the tail wagging the dog. BofA doesn't want your property off of their books. So, they won't react to how you are saving "them" money by doing this short sale - you aren't.

Permalink Reply by Thomas Zdanowicz on September 19, 2012 at 5:53am

 Great insight Joe.  I am still not sure why they are pushing these co-op short sales and giving aprovals in less than a month?

Permalink Reply by Rebekah Gamble on September 19, 2012 at 12:03am

Hello, Kevin.  My seller has also been approved for Streamline Co-op with BofA.  We received a letter to expect $5,000 - $30,000 for completing the sale.  We have listed at the pre approved price and have a full price cash offer of $317,000. (that's over the suggested price by BofA).  The counter from BofA is that she gets $2,500 relo and $2,500 HIN.  The only direction we have is that the amount offered to seller/borrower is based on appraised value.  How can I negotiate for more without knowing the formulas?  How were you able to get well above $2,500?

I would like know more before I present this "counter" to my borrower.  Thank you!  I am in CA.

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