You have GOT to be kidding me- what BofA wants from short sale buyers now
So according to my negotiator at Service Link, BofA has a brand new guideline: All short sale buyers must provide proof of funds for Earnest Money & Down Payment at the time we submit the offer. (in Oregon EM is not deposited until we have ss approval).
I am beginning to think short sales will soon be a thing of the past..between Fannie Mae's absurdly bloated valuations and BofA roadblocks get me some Xanax. UGH
Replies to This Discussion
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Permalink Reply by Patrick Willard on
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Bill, no one asked the buyer's net worth, just proof of funds. If you have $1M in various accounts and need to show funds for $30K down you can provide proof in one account without ever disclosing other accounts. I've worked with investors that didn't want to dislcose their total worth so their bank provided them with a letter stating they have sufficient funds on deposit.
My experience has shown most non performing buyers are ones that were never really qualified in the first place (which is why I want to see a loan approval letter) and yes this is on the lender or agent. I will never undersatnd why some will work with unqualified buyers but some do which is why we need to verify qualification and funds for all buyers.
Really a financially limited buyer or one that cannot wait should not be looking at short sales in the first place. Some people want to have their cake and eat it too. I cannot count the number of low down offers I have received on trashed REO listings where the buyer wanted all kinds of repairs, on an as is property. They all said they wanted the discounted price of the distressed property but they were not qualified, financially or menatlly, to buy a distessed property. Bill, I suggest you just stay away from short sales, or REO sales.
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Permalink Reply by Bill Sloss on
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Nooooooo there was a reference to bank statements with specificity.
I will never undersatnd why some will work with unqualified buyers but some do which is why we need to verify qualification and funds for all buyers.
Thats why there is a financing contingency that can be accepted or rejected. Its not rocket science
I cannot count the number of low down offers I have received on trashed REO listings where the buyer wanted all kinds of repairs, on an as is property. Thats called the benefit of the bargain. So instead of telling me what you think I should do I think you should stick to those multimillion dollar listings where youll obviously be much happier and have far fewer complaints and concerns about us normal folk who expect competence and performance huh? If you dont want to sell those trashed REO properties you just got some good free advice. Otherwise save your attitude until you find someone who cares.
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Bill, I love selling trashed REO properties, I just hate went idiots think they are entitled to a huge discount for the condition and then still have the seller pay thousands for repairs. I've sold dozens to great rehab investors (please don't call them flippers) that have turned trash into a great home for someone. Also I have never sold a million dollar home, yet alone a multi-million doolar one. Average price in my market is closer to $160K and since I mostly do REO and short sales my average is lower than that. I do sell a lot of them but I work very hard for all my clients.
As for attitude Bill you've obviously had a bad short sale experience that has caused such a bad attitude in you that you will slam any and every agent, broker or lender regardless of what they say or do. There are good and bad in every business but in my experience the over whelming majority of agents working short sales are hard working and caring people doing their best to help others make the best of a bad situation.
So say you are "normal folk" but in every responce it's obvious that you think everything should go your way all the time and if it doesn't your going to cry about it and lash out at everyone else. You cannot be so one sided, the buyer doesn't have to prove they can buy, they can keep looking, they can pull out and leave the seller hanging.
I usually enjoy a good debate but I'm going to stop following this discussion because it really isn't any fun having a battle of wits with an unarmed man.
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Your opinion is based on your ideations. You dont get good deals unless you propose good deals. Obviously a good deal for a buyer isnt as good a deal for you because you want to make money. Thats the business.
Im going to tell the truth and speak the truth. If you cant handle the truth and listen to what I have to say without trying to act the offended child when you have nothing to do with it knock yourself out. Maybe you can find work as a poster child for the pseudo offended and work your way up to TV and radio. Ill find you some sad music and a crying background.
So say you are "normal folk" but in every responce it's obvious that you think everything should go your way all the time. Theres a right way and a wrong way.
"we don't have a contract until the lender approves". WRONG"
You have a contract that means nothing without an approval. Lets not play semantics games.
You cannot be so one sided, the buyer doesn't have to prove they can buy, they can keep looking, they can pull out and leave the seller hanging. You cant be so stupid to say you read me say that or believe I do. What I said was anyone can breach if theyre willing to pay the freight.
As for attitude Bill you've obviously had a bad short sale experience that has caused such a bad attitude. My experience is based on right and wrong. Honest and dishonest. I know whats up. Poop in a dish with a silver spoon isnt ice cream.
Im happy to hear youre going to stop following this. Obviously you think youre a good man and usually Id say stand up youre mumbling but in your case Ill leave it at you think youre a good man and a good man gots to know his limitations.
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Permalink Reply by Robert Boerner on
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Quote from Bill:
"A contract is a promise to perform. The contract specifies the penalty for nonperformance."
What is the penalty to the buyer if they opt not to purchase the property after the seller waits a month for the lender's short sale approval?
Half the time, the buyer won't even tell the agent they have already entered into a contract (or a dozen) on another property. True the lenders are not very efficient. But, buyers using the shot-gun approach to home buying is clogging the system Statistically, it would be interesting to know how many time the initial buyer is the one who purchases a short sale listing. I bet it is a very low percentage.
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They lose escrow and are subject to the terms of breach in the contract.
True the lenders are not very efficient. But, buyers using the shot-gun approach to home buying is clogging the system
Why are they shotgunning?
No offense intended but its because realtors cant get the job done in a timely manner because lenders are not very efficient.
If I lost my milk money every day to a bully walking home on the same street Id change my route. You guys get more money.
If the contracts were handled in a timely manner and lets be serious there is no reason you cant get a "normal" contract done in 30 days. You get the offer order a BPO commuicate with the agents and move forward. The buyers agent cant even talk to the lender. Its a joke.
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Permalink Reply by Denise Orrico on
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Quote from Bill ..."Lets not make excuses the problems with buyers are not in the POF they are with the performance of the agents and the lender"....
Wow!!! I think you may get a few more posts like mine before the days end!...That’s a strong accusation Bill!
Can we throw one back at you?
Here goes…Obviously you have never negotiated a typical real estate short sale transaction before in your life-??? If you had, you would not be typing such ludicrous statements or ranting and raving on our forum- That was an ignorant comment! Your comprehension of short sales is limited! PERIOD!!!!
Without looking at your profile, I am assuming you are either a real estate investor flipping houses or holding and renting or an attorney who has litigation experience. Which is it?
Short Sale 101: A “typical” short sale that most realtors encounter on a daily basis includes a servicer, an investor, a junior lien holder (lender/servicer), a title or escrow company, a foreclosure attorney or non-judicial trustee, a seller, a buyer’s agent, a buyer, and the buyer’s mortgage company…If the buyer has cash, it is 100% imperative we share this with the seller’s servicer- PERIOD!!!!!
Why are you trying to recreate the wheel? ....At what point do you think we Realtors have full control over this transaction without submitting a full short sale packet to the lender for approval which includes buyer POF or a mortgage pre-approval letter??????? Bill, we do our very best to facilitate and negotiate the short sale so it gets to the closing table- If it does not close, we do not get paid! Think about it! At what point do you think we drag our feet so you as the buyer can suffer at our expense?....Are you trying to flatter yourself or are you just “pissed-off” that you missed out on a few recent deals because YOU wouldn’t show your Proof Of Funds” -?Remember, you can always “black out” your account info with a dark marker if you are that modest about your financial status going across the air waves!
Bill, you need to apply the “GET REAL” to yourself…”GET EDUCATED” while you are at it!!!!
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Poor baby are you upset?
Pretention and assumption is a bad combination. Without looking at your profile, I am assuming you are either a real estate investor flipping houses or holding and renting or an attorney who has litigation experience. Which is it? Why are you assuming anything?
At what point do you think we Realtors have full control over this transaction without submitting a full short sale packet to the lender for approval which includes buyer POF or a mortgage pre-approval letter??????? There is someone in this thread who has said a lender is not involved in the contract. Please. At what point? When you have a valid contract and POF. Period. Why does it take so long for approvals in simple SS?
I never said they did. Next. But you do have full and complete control over communication and cooperation with each other and most importantly communication with the buyer.
" Bill, we do our very best to facilitate and negotiate the short sale so it gets to the closing table" You might and if you do I commend you. But thats not the case. Dont trivialize your point by saying "we" because you most certainly dont speak for everyone nor is your statement an accurate representation of your entire profession
At what point do you think we drag our feet so you as the buyer can suffer at our expense?.... Poor communicationand poor perfomance
Are you trying to flatter yourself or are you just “pissed-off” that you missed out on a few recent deals because YOU wouldn’t show your Proof Of Funds”
Neither one and my you are very good at assumption.
Your histrionics are very nice but please tell me it takes 5 months to conclude a short sale with a 100% proven cash buyer with two cooperating agents doing their best.
Please tell me why it takes almost 45 days from when a BPO is ordered and done before the buyers agent gets any feedback?
Please tell me why an agent "allows" a note to be sold involved in a SS contract.
Feel free to rant and rave all you want but facts not diatribes thrill me
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Bill,
I am only assuming what I have experienced firsthand on the other side as a buyer’s agent- I get it! I have definitely experienced several "not so good" short sale transactions as a buyer's agent where the deal took waaaaaaaay too long in my opinion but I always prompted the listing agent to give updates AND I stayed on their backs until we got the deal done! I feel your frustration but pointing fingers at “us”, meaning experienced SS negotiators, does no good for what you want to accomplish- Besides, those “not so good short sale agents” are not on this forum!
The agents on this forum are great short sale negotiators that help one another and are willing to do what it takes to change the behaviors of the inept servicers and investors…The problematic issues we are facing now are primarily with the secondary money market of both GSEs (Freddie Mac and Fannie Mae)- Their grossly over-inflated BPO values are causing another hurdle with short sale approvals. Perhaps some of the difficulties you are experiencing w/ your short sale approvals in your local market may have something to do w/ the government's mandate of selling off non-performing notes to the GSEs to help free up money and enterprise- The over-inflated values we are seeing are about 20% above fair market value- It’s a MAJOR issue we are dealing with in our realtor community…Bill, if you want to help get these short sales approved, quit spending time complaining on this forum and get involved with something that will change your outcome- Please read and sign and share our petition at :-http://wh.gov/VY24
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Im not pointing fingers at anyone. Im telling the truth and its a truth you just confirmed.
Besides, those “not so good short sale agents” are not on this forum! But you deal with them and allow their nonsense to flourish. "Your" associations protect them when complaints are made. Brokers shield them. Please your drum is broken.
"You" excuse their poor performance and lack of communication. "You subsidize poor performance" "You" know who they are.
Im just giving you a buyers perspective.
The problematic issues we are facing now are primarily with the secondary money market of both GSEs (Freddie Mac and Fannie Mae)
And you should know why this is happening. Its mistake after mistake.
Make no mistake about it you have a tough job and youre not getting help.
But look its still America and I can spend my time in whatever manner I want whether you like it or not. This situation will change when "you" hold people accountable. Youre a powerful lobby Id suspect so get it done. There are no time limits on the nonsense other than the contract and youve given the lenders too much power. They do what they want and theres nothing you can do about it until you do something about it. I know what I have to put up with and you know what no one calls me to complain about deals. Can you say the same? No.Youre taking the beating not me. When things go south Ill find another house and another realtor. Im being admittedly pragmatic but whos fighting your battle for you?
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absolutely Denise!!!! We all need to sign that petition and get this nightmare stopped!!!
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I have an example for you Bill.... I have a short sale right now that was a BofA but was sold to another servicer///the new servicer requires 20 days to get the BPO/appraisal completed, another 15 to 20 days to approve or not approve after receipt of appraisal...I have absolutely no control over that timing.... I spent 3 days a week talking to the negotiator about when the appraisal was going to be done on the property and the 20th day, I escalated the file and got the appraisal completed within 2 days after that.....I can only do so much to move a file forward and most of us in this business have become very good at being a pain in the neck to the negotiators in order to move our files forward.....as far as the buyers agent being able to negotiate a deal with the sellers bank, it makes no sense and is really none of the buyers business to know the sellers circumstances.....if I were you, as a buyers agent( which you seem to be) I would insist that the listing agent stay in contact with you during the negotiation of the deal....I give weekly updates of my short sales to all parties and even more often if something happens on the file.....I am all for disclosure, disclosure, disclosure because all parties have the same objective in the transaction....to get it closed...
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