I have a short sale in Equator. Process has gone smoothly so far. BoA has countered the initial offer. Kept everything excepted added cash contribution of $1,000.00 and promissory note of $17,500.00.
Any advice on removing/lowering cash contribution and/or promissory note amount?
Also, what are the typically the terms of the BoA promissory notes?
Thanks in advance,
Josh
Tags:
Tell them no. I usually find they will accept that as a final.
Are your sellers able to contribute? Do they have cash or assets? Most of my sellers do not, and of course they've produced financial documents that support this. Therefore I have them write a letter that says they do not currently have cash to bring to the table. They do not feel their financial situation is stable enough to promise to pay back money, and they don't see any improvement in the near future. Upload the letter into Equator.
I then counter the cash and promissory at '$0" each. I have never had my counter turned down.
Try this. Good luck!
Rarely has the BOA negotiator looked at the docs in any detail. When I get these demands, I'll go back to the bank statements, the financial statement, the hardship - rarely to the seller, and look them over. For one thing, BOA forms do not ask for liabilities, just assets. I sometimes have to beat the sellers "sensible" since most look at finances and one more painful piece of paper to jot down "something" and walk away. I don't like seeing things like $5K income and $3K expenses/mo. I don't know that I've ever had the numbers turn out like that after I point out (and sometimes it takes a mallet) that accuracy counts. I also get plenty where they've added the house payments that they aren't making as expenses..
Anyway, I look at the hardship to refresh the situation for this file (sick? other issues?), look at the financial statement (and I will have added the liabilities on top of whatever form I have for BOA) and then look for unusual things in bank statements. If I find something strange, as I have from time to time, I'll talk to the seller where I'll find that he sold all of his tools to help pay debts or his son lent him the money to help out, etc. All good info.
Then I get the negotiator on the phone - can be a super problem at BOA, if you have an average or worse negotiator. And I usually mention a point or two and then ask what I missed that suggests he has cash to bring to the table and is able to make future payments. Very frequently, this is where they fold. They know that they are shooting in the dark, I've mentioned some things which means I have a pocketful of other arrows for them and they know that I know the docs inside and out and they can barely find them.
Once, I had a response about something on a credit report (not from a BOA negotiator but a WF one). So, it is worth listening and not being pushy. I may point out a couple more things or wait until I find out the story behind what he found. (This one was a "new car" and the negotiator was for 2nd lien. The negotiator pointed out that the car payment was more then what is owed to his bank - good point. However, the car was not new, the old one was dead and this was a used one for transportation to get to work. Yep, the info finished him off - but I was impressed at his work.)
The MI companies can be a real pain and look at things in more detail, but the BOA negotiators are told to go fishing - and it is almost always very obvious.
Anyway, if you go over the details, keep them straight in your head, that is usually enough right there to have the BOA negotiator wander away muttering - and you just take those things off of your counter - possible with some message, if appropriate - like seller's son has increased medical needs, no extra money now, certainly unable to pay an extra note - or whatever seems fitting. Sometimes it is good to remind the negotiator when he looks at your counter that you are the one who didn't roll over when he pushed for $$. Otherwise, as "meticulous" as they are, they may forget and throw it back in.. (yes, tongue in cheek)..
Rarely has the BOA negotiator looked at the docs in any detail. When I get these demands, I'll go back to the bank statements, the financial statement, the hardship - rarely to the seller, and look them over. For one thing, BOA forms do not ask for liabilities, just assets. I sometimes have to beat the sellers "sensible" since most look at finances and one more painful piece of paper to jot down "something" and walk away. I don't like seeing things like $5K income and $3K expenses/mo. I don't know that I've ever had the numbers turn out like that after I point out (and sometimes it takes a mallet) that accuracy counts. I also get plenty where they've added the house payments that they aren't making as expenses..
Anyway, I look at the hardship to refresh the situation for this file (sick? other issues?), look at the financial statement (and I will have added the liabilities on top of whatever form I have for BOA) and then look for unusual things in bank statements. If I find something strange, as I have from time to time, I'll talk to the seller where I'll find that he sold all of his tools to help pay debts or his son lent him the money to help out, etc. All good info.
Then I get the negotiator on the phone - can be a super problem at BOA, if you have an average or worse negotiator. And I usually mention a point or two and then ask what I missed that suggests he has cash to bring to the table and is able to make future payments. Very frequently, this is where they fold. They know that they are shooting in the dark, I've mentioned some things which means I have a pocketful of other arrows for them and they know that I know the docs inside and out and they can barely find them.
Once, I had a response about something on a credit report (not from a BOA negotiator but a WF one). So, it is worth listening and not being pushy. I may point out a couple more things or wait until I find out the story behind what he found. (This one was a "new car" and the negotiator was for 2nd lien. The negotiator pointed out that the car payment was more then what is owed to his bank - good point. However, the car was not new, the old one was dead and this was a used one for transportation to get to work. Yep, the info finished him off - but I was impressed at his work.)
The MI companies can be a real pain and look at things in more detail, but the BOA negotiators are told to go fishing - and it is almost always very obvious.
Anyway, if you go over the details, keep them straight in your head, that is usually enough right there to have the BOA negotiator wander away muttering - and you just take those things off of your counter - possible with some message, if appropriate - like seller's son has increased medical needs, no extra money now, certainly unable to pay an extra note - or whatever seems fitting. Sometimes it is good to remind the negotiator when he looks at your counter that you are the one who didn't roll over when he pushed for $$. Otherwise, as "meticulous" as they are, they may forget and throw it back in.. (yes, tongue in cheek)..
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