Replies to This Discussion

Permalink Reply by Jim Schneider on November 7, 2010 at 1:57pm

If you've had a bad bpo, list it here and we'll get you advice on how to fix it (or at least make sure it doesn't happen again).

Please include, your estimated repaired value (what it would be worth if it didn't need repairs), any needed repairs, the value the bank had, and why you think they're wrong.

Permalink Reply by Jim Schneider on November 12, 2010 at 5:31pm

Smitty posted a bpo issue that I wanted to address and make sure it didn't just get burried in the general discussion board.

Smitty said "I'm short saling a condo that is not part of an association and doesn't have fees. I've been told by most buyers that they cannot get financing because the other unit is not owner occupied, so a cash offer has to be put in.



My buyers put in a cash offer of $248,000, but the net was around $220,000. Lender came back today and said they want to net $261,000. The buyer will go up to $273,000 for an offer but that only nets the lender $253,000. So is it worth explaining to the lender that ONLY cash offers will work here? What can I do?



What strategies have you used to work down the net amount a little?

It's serviced by AHMSI."

Is there no condo fees because the association is bankrupt? I have seen some condos where the association basically dies for lack of funds. If that is the case, it should be possible to show this to the bank. If there can only be cash sales, show paired sales of cash sales vs. financed sales (if your mls has this information) for example, try to find a building in the area where there have been sales of the same type of unit where one was a cash sale and one was a finance sale.

It doesn't have to be a perfect comp for your sale, but it would help. Say the condo down the street had two sales of 6rm 2br 2bath condos, the financed sale was $265,000 the cash sale was $240,000, that means cash purchasors are expecting a 9.4% discount for cash. Obviously, try to find matched pairs of condos that give you a large enough discount to make your numbers.