Replies to This Discussion

Permalink Reply by Kyle Souza on September 15, 2010 at 12:15pm

You should be able to submit the appraisal to have it reviewed for the value. If it is a "good appraisal" they should amend the terms of the approval to meet the appraised value.

Permalink Reply by Tom Olsewski on September 15, 2010 at 5:30pm

I agree with Kyle............... As a listing agent I have submitted a number of buyer lender appraisals that had come in lower and the short sale lender adjusted the price. Including Indymac/OWB.

Permalink Reply by Denise Forsyth on September 15, 2010 at 5:40pm

Yes that is exactly what we did we created an addendum lower price the appraised value and sent it along with the appraisal. The problem is the sellers are using a short sale negotiating company. After 3 weeks, the reply that was given was that we had to start over, I am not buying this, this happens everyday,. I am finding this really fishy, I called Indymac to ask them if this was normal but since I am not authorized they couldnt look up the file.. I am having the seller call and give a verbal authorization tomorrow. I do have the negotiators email, saw it on a stream of communication from the listing agent. According to the approvals from 1st and 2nd, of which I havent seen yet, we are still within our escrow period.

Tom Olsewski said:

I agree with Kyle............... As a listing agent I have submitted a number of buyer lender appraisals that had come in lower and the short sale lender adjusted the price. Including Indymac/OWB.

Permalink Reply by Kyle Souza on September 15, 2010 at 5:47pm

I would actually ask them to provide you written authorization for this transaction only (the seller I mean). It may take you more than a day to communicate with them and typically that is all that the servicer will provide for verbal authorization. Who is paying the negotiation company? Did the approval come directly from IMB or Service Link.

Permalink Reply by Denise Forsyth on September 15, 2010 at 6:08pm

That is a great question!!! I spoke to one of the negotiators at the 3rd part out fit and he said he had both approvals and was sending them to the Seller and the buyers lender as soon as he received something from the seller, which they did receive whatever it was, but the appraisal came in at that time and then we started on the price reduction so I dont think they ever sent the approvals. I believe its from Indy/OWB since that was who the emails were from on the communication log with these people. I have the buyers lender working on getting both approvals tomorrow from these people. The seller is paying the negotiation fee I believe.

Kyle Souza said:

I would actually ask them to provide you written authorization for this transaction only (the seller I mean). It may take you more than a day to communicate with them and typically that is all that the servicer will provide for verbal authorization. Who is paying the negotiation company? Did the approval come directly from IMB or Service Link.

Permalink Reply by Kyle Souza on September 15, 2010 at 6:24pm

What state are you in? In CA the seller can't pay any fees for assistance without approval from the state.

You mentioned 2 approvals, are there 2 different lenders? Only the 1st really matters but the 2nd will need to have the correct price on their approval to satisfy title or the attorney. Again, I would get written authorization (similar to a specific power of attorney). It is unlikely that you will get this resolved in 1 day and that is all you will be provided on verbal authorization only 24 hours. You need to get more answers and possibly escalate this up the ladder. It isn't making sense that you have to start over. Is IMB really going to hold out that long and take the chance that the proeprty will decline in value more? If the negotiation company has already been paid then not much motivation for them to work hard for your buyer, maybe they get paid for each approval? Not sure. Unless your buyer loves this house are they going to wait another 7 months. It shouldn't have taken that long in the 1st place. Who is the investor and or MI company? Maybe you need to talk to them also, how much more money do they want to lose?

Permalink Reply by Denise Forsyth on September 15, 2010 at 6:53pm

I am right with you on this. Its been difficult sitting on this side of the deal since I usually am the lister and negotiator, I have heard the craziest things with this deal and the 3rd party negotiators, I started calling them my self. They sound pretty convincing and I have chalked up a few things to it being Indymac, but when this happened today that they said we had to start over, I cant contain myself longer. I am going to talk to them tomorrow to find out what exactly they mean by start over, then I am getting involved heavily, and I am going to find the buyers another house. Oh and yes the second is Citi and they have extended to 10-10 and have ammended their approval, we have until 9-27 on the Indy approval.I think Iwill also have the buyers lender send the appraisal back for review to see if they can bring it up.

Kyle Souza said:

What state are you in? In CA the seller can't pay any fees for assistance without approval from the state.

You mentioned 2 approvals, are there 2 different lenders? Only the 1st really matters but the 2nd will need to have the correct price on their approval to satisfy title or the attorney. Again, I would get written authorization (similar to a specific power of attorney). It is unlikely that you will get this resolved in 1 day and that is all you will be provided on verbal authorization only 24 hours. You need to get more answers and possibly escalate this up the ladder. It isn't making sense that you have to start over. Is IMB really going to hold out that long and take the chance that the proeprty will decline in value more? If the negotiation company has already been paid then not much motivation for them to work hard for your buyer, maybe they get paid for each approval? Not sure. Unless your buyer loves this house are they going to wait another 7 months. It shouldn't have taken that long in the 1st place. Who is the investor and or MI company? Maybe you need to talk to them also, how much more money do they want to lose?

Permalink Reply by Jeff Payne on November 3, 2010 at 7:52am

Indy Mac will reconsider the offer if you send the appraisal in, the 3rd party doing the short sale must be an idiot. Indy Mac is easy to deal with once you get approval, they will assign buyers too. 3rd parties are just too many hands in the cookie jar that usually screw it up, in my opinion