BofA Counter Offer Worksheet - NEED HELP PLEASE!

Hello Everyone!

 

First, I want to say that it is a great idea having a Forum like this to support and help each other during the process of dealing with BofA...my experience with them has been very negative and they are always trying to find ways to be sneaky! 

 

It is for this reason that I urgently need your guys' help! I have submitted an offer for selling a condominium via shortsale (equator). Other properties in the same complex sold for $182K via a short sale, but I listed it at $185K. I was able to get an offer from a buyer for $191,500, so I was very confident it would be accepted. 

 

Initially I only filled out the areas with an asterisk and the bank has now submitted a counter offer filling out many other fields...I am unclear as to what they are asking for in some areas, and particularly concerned about a their request for $5K under the "Cash Contribution - 1st Lien" line and $10K under "Promissory Note Amount - 1st Lien"!! Does this mean that on top of the $191,500 offer the new buyer will pay, they are asking my client (the current owner) to pay an additional $10K???

 

Also, from looking at other people's sample worksheet, I do not see all the additional areas filled by the bank in the counter offer...are they trying to include all those additional closing costs to my client? How do I know which costs are to be covered by the bank deducted form the $191,500 offer vs my client costs? Is it reasonable what they are asking for???

 

I will greatly appreciate your input and advice as soon as you guys can as the offer expires in the next week. One more comment...my client initially had initially applied for a loan modification, for which he was rejected...based on this and other requirements, B of A had confirmed that my client would qualify for HAFA...my understanding was that the lender was not allowed to request the seller to have any out-of-pocket expenses...am I wrong?

 

I have attached a copy of the offer below for your quick reference!

 

Once again, thank you so much for your help!!

 

Regards,

Teofilo

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Replies to This Discussion

Permalink Reply by Carol Muir on August 1, 2010 at 8:07am
Hi Teofilo, They are asking for $5k to bring to closing and $10k in a Note. Talk to your seller and see what they want to do. Bank is probably taking a bath on this one. Based on your conversation with the Seller you can make a counter offer. A note is not a bad thing, after a while they can renegotiate with the Lender. See if you can get the $5k cash reduced or rolled into the Note or some commission on both side may have to help with cash. Try different combinations on the counter offer, reductions, combination, credits.

Hope this helps.
Permalink Reply by Dave Halpern on August 1, 2010 at 4:35pm
You may not have followed all the HAFA forms and procedures, otherwise they would not have required obligation on the shortage. Tell BOA that you will cancel this short sale closing and restart it as a HAFA. You'll probably lose the buyer, but there are new buyers out there. That will take them several months to reprocess which will cost BOA's investor thousands. You are not trying to make BOA lose, you are simply fulfilling your fiduciary responsibility to your client since they said he's HAFA eligible.

Pleased let us know here how it worked out. - Dave
Permalink Reply by Bryant Tutas on August 2, 2010 at 12:28am
Teofilo. BofA filled in the extra areas because you had neglected to place those charges in your offer. Instead of outright rejecting your offer because it was incomplete they jumped in and helped you. Entering these offers correctly is imperative. The very next thing you need to do is pull op the instruction manual in equator and read it.

It is also my understanding that HAFA short sales do not go through the equator system. HAFA has a complete set of forms that need to be submitted and sent to the lender prior top even sending them the offer. Go to the HAFA group on this site and get the info needed.

Is there someone in your office that handles short sales that can walk you through this transaction? Please seek advice from your broker.
Permalink Reply by Brenda L Wood on August 5, 2010 at 5:56am
Update to HAFA and Equator: There was a BOA webinar 7/28/2010 regarding procedures and FAQs with HAFA and Equator. While the procedures differ between a traditional short sale and a HAFA short, the managers that developed the procedures for HAFA/Equator stressed that it can still be done even if you have started traditional SS request.

Here is a link to that webinar for HAFA/Equator in its entirety (copy and paste) - http://video.webexlivestream.com/events/webx001/35414/

Here is a link to traditional short sale procedure in Equator: http://video.webexlivestream.com/events/webx001/35411/

I've also uploaded here the outline that was provided during the HAFA webinar.
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