Hello everyone. Mine will probably be a quite different blog from what you are used to seeing. I am a first time short sale buyer - not an agent, not a seller, and not an investor (per se), although this will be an investment property. I have purchased a property (completed foreclosure) via auction.com previously. Same seller (BoA). Start to finish we closed in less than 45 days with that transaction. I have read many of the comments on the various blogs, and, as a buyer (or even if I was a seller), I find the general "attitude" of most Agents to be less than desireable. Here's "my story" (the short version):
Purchased a short sale property through auction.com. Auction ended Janaury 12, 2013. Was listed as "Bank Approved Short Sale" which tells the Buyer "hey, they already looked at this" and I can close this thing in about 60 days (or less). Estimated closing date was 2/26/13. All documents say transaction will close within 45-60 days. Today was day 54, and I don't even have a bid confirmation, much less Lender's approval. It should be noted that my agent is also the listing agent - but from what I have found, the listing agent does most of the document and information input anyway (via Equator), so I am "at that agent's mercy" either way. To me, the additional commission should be an added incentive to get the deal closed as quickly as possible. "Dual agent" also reduces some back and forth and the good old "he said - she said" "excuse(s)".
January 17th agent tells me "I have provided everything they have asked for, and we are waiting on the bank". That sounds pretty good, but the reality is contract was due on January 14th, and we were 3 days late from the start. Not to mention the agent had not yet even asked me for my information (first 5 of ssn etc.). Agent called and obtained this information from me on or about 02/17/13. Numerous e-mails from me to my agent, reminding agent of dates, holidays (non-business days) etc., and requesting to know the transaction status etc. goes on through the date bid confirmation was to be provided (02/04/13 - 15 business days from end of auction). Same old same old - we are waiting on Bank - no new tasks in Equator blah blah blah. "Be Patient" and "it can take months for a short sale" is what I hear all the time.
Original closing date nears, and I, the Buyer, prepare an extension. That's right, I "had" to do it myself, or risk the closing date just passing by, and everything going down the drain. On 02/25/13 my agent re-does the extension, and we extend closing date to 04/11/13. As of today, the agents fee is not even right on the estimated HUD1. Now, if "you" cannot get any other number right on the HUD1, "you" should be able to get "your" fee amount right, right? Agent either cannot or will not provide the Equator status to me (one of the six), which tells me we have oodles of problems still. Agents response on phone tonight was "I will wait for someone to tell me it is wrong, and if not, it must be right" (or pretty close to that - regarding their commission/ fee) So for those of you who do not know, so you will know - the allowable commission is 6% of the BID PRICE - not the Total Purchase Price. We also "thought" last night it might be a flat fee - at more than double that 6%. It seems that "discrepancy" got fixed this afternoon. Like the Bank and/or Lenders are going to have more than 30% of the purchase price "ate up" in commissions/fees!
I found and have read the BoA Equator agent reference guide. It says all over the place - deadlines and accuracy are critical. My guess is that the Equator system serves as a check and balances for all the numbers (offer amount, commissions, fees and closing costs). Some or all of those are input via other agreement(s) (listing agreement etc.). If/when they do not match, the system kicks it out, and corrections need to be made. As a buyer, I do not have access to the Equator system, although I did register an account with them. I can look at properties for sale, like I want to do this again! I would also think it tracks the documents and dates. I had to resubmit my proof of funds, since it was more than 30 days.
So, my question to "you" superstars is: Why is this? Why does it seem that deadlines are treated as "purely mythical", and accuracy seems to be the least of an agent's concern? I have seen comments that pretty much flat out say these things. I have also had agent(s) tell me this is how they view short sale(s). Why do agents continue to tell buyers (and wholeheartedly believe and expect) a short sale will take months, when the bank says it will take 45-60 days? (Keep in mind in this case, I beleive the BPO was done prior to the auction, so a valuation dispute is not (currently anyway) in any way an issue). As far as I know, the Lender has not even seen this stuff yet. Perhaps BoA has not seen it either.
Thanks in advance for your insights and responses.
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