I have an FHA short sale listed. Bank of America came back and told me to put it on the market for $16,000.00 and that they must walk away with $14,080.00. We are currently in phase 2...
The problem is that the numbers do not work...
Sale price 16,000.00
Seller incentive is 1,000.00
Title Company fees are 495.00
Commission is 6%= 960.00
Totaling this is less than the bank requirement...
Any advice?
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I have one even worse. They want to set the price at $150,000 and get $165,000 in proceeds. Talk about numbers not working.
Thanks Bryant! I do have the buyer paying a minimum commission for negotiating the short sale. I have been a silent participant on here for a while and used it as a learning tool. I love what you have built!!!
Hi Shannon. FYI yoiu will get more responses to your questions if you use the forum instead of the blog. The blog is for sharing info. The forum is for questions to the members.
The $14,080 figure is 88% of the appraised value. They need to NET this for the 1st 30 days. Then it drops to 86% and then after 60 days it drops to 84%.
The problem is that the purchase price is so low the $1,000 incentive is throwing your numbers off. I would just contact the negotiator and ask what your options are. Personally I would ask for a $3,000 minimum commission as well.
FHA can and will issue variances to their guidelines if they make sense.