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 Bill Sloss on
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And the price fix is based on what if not money.? And the way to evaluate money if youre the government is look at financials.
I dont know why youre telling me about EMD and escrow.
there is no recourse for the seller after they have taken the property off the market in good faith toward the buyer's willingness
Of course there is if they breach the contract, again depending what the contract says
My point ONCE AGAIN was someone said bank statements.
They are impractical and not needed. Submitting a bank statement like Mike said is ludicrous.
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we submit bank statements all the time. It has the account # and personal info blacked out. no biggie unless you have something to hide... a letter from the bank is the same thing. if the buyer works in good faith and the seller works in good faith, there is no issue at all. There is only a problem if there is a problem, right. Sounds to me like you have been working with a few bad agents. Maybe you need to look for better representation. When purchasing short sale properties there is a list of what documents you need to present. It is simple and straight forward. You need to interview your agent and make sure that they know what they are doing when working on your behalf in the purchase of short sale properties. That will cut down on the frustration that you have experienced.
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With all due respect you shouldnt submit anything more than what is asked.
No one should know how much you have or where it is. Id suggest keeping the only one in the loop as the BA. The BA verifies the funds and tells the SA who tells the lender unless you come up wth a notarized affidavit for inclusion from the BA.
Confidential is confidential. I dont want someone at lender or a title company knowing where my money is.
The best agent in the world cant make them move any faster and no one wants to piss them off as there is no accountability or standards of practice.
The Real Estate profession should have set up standards of practice on SS a long time ago and havent as far as I know or there are a lot of people not following them.
Im speaking for buyers from their prospective. I handle my own frustrations. I know whats up.
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Permalink Reply by Paul Antonelli on
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Bill here's an example;
You are not an Agent, keep that in mind.
You employ a Realtor to sell your home, that you still live in. You instruct them that you only want Approved buyers to view the property.
Monday afternoon ; your agent gives you 2 contracts. One for full price, with a letter that looks like it was done on Word that says this buyer is pre-qualified to buy your home.
Second offer is for $8K less but the buyer is putting down 50% doing conventional loan, and attaches a copy of his bank statement to show he has well enough for the down payment..
Which one are you taking?
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Im not stupid keep that in mind
What does the MLS say about posting a listing? So if the seller wants to use MLS thats the way that is
If I want to keep my license and keep my E&O carrier happy I verify the facts and take the best offer.
Is there any hurry?
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Permalink Reply by Robert Boerner on
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Not being difficult but just sharing my $0.02.
If the seller is not facing a taxation issue for the debt forgiveness and there is no lender recourse, the seller will realize the same benefit if they sell for $100,000 or $110,000. A short-sale seller should select the offer which has the highest change of closing. Its not the price that matters in a short sale. Its getting to the finish line that matters.
Once that offer is accepted by the seller, the executed contract is sent to the lender with proof of funds. We aren't letting the lender select which offer the seller signs yet, are we?
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Exactly. Well said.
We aren't letting the lender select which offer the seller signs yet, are we?
Only if you give them a choice
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Permalink Reply by Jim McCormack on
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I agree with you on this point 100%.
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You guys take a beating for little reason. Set some standards. I know its easy for me to say but man you guys get hammered and it doesnt look or sound like you get much help or help each other out. Its not a conventional transaction both agents are working for the same thing. The seller has a very limited interest whats to protect? Get them sped up and you wont have buyers walking and all the shotgunning offers.
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Permalink Reply by Denise Orrico on
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Bill, I think we need to realize that we are on the same page in many ways…
Yes, there is a huge problem with consistency when it comes to short sale negotiations both internally (lenders) and externally (listing agents).
Regarding standard: Most of us are licensed REALTORS® (members of the National Association of REALTORS®)—We have to follow several ethical behaviors and our laws of government.- One such ethical behavior is that we believe in the practice of “equal opportunity” to compete for market share regarding listings, negotiations, purchases, sales, and competition involving any aspect of a real estate transaction- This includes short sales. We would be in total violation of Anti-trust laws if we didn’t practice this theory.
As Realtors®, our members follow this code to assist in understanding the difference between right and wrong and applying that understanding to our decisions when we conduct business. Our codes and licensing laws help facilitate a level of professionalism within our ‘real estate’ field both w/ fellow brokers and the public. The code is there to teach us the right ways of doing business so we do not violate the laws within our professional standards.
We do have standards that we follow and do have continued education that is required for licensing and to protect those involved in the transactions- Do we presently have some rotten fruit still hanging from the tree, causing others to ferment and smell bad-? Of course, but that is in any field, not just real estate in particular.
As the short sale listing agent, we are here to protect the seller from entering into a real estate transaction that will cause more financial harm than good. We do not want the buyer's agent involved in negotiating the terms of the short sale or their mortgage debt settlement because the buyer and the buyer's agent only has fiduciary responsibility to the buyer, not the seller- Yes, we want the deal to close but in the event the offer is on the “low end” of market value and the seller’s lender is not going to forgive all the deficiency, we need to do what is best for our seller. This will mean trying to get a higher offer either by countering the original offer or by choosing a different buyer.
Again, coming from the listing side of things, and being an almost exclusive short sale brokerage firm, I never allow the buyer’s side to be placed on the 3rd party authorization form. It’s against our office policy and our licensing law. Confidentiality remains confidential at all times unless the seller gives permission for the buyer’s side to know his/her business- On the flip side, if I have a buyer, I won’t hesitate to ask the listing agent if he or she has the short sale confidence to get the deal closed. I can tell if the agent is experienced or not. Sometimes they have an attorney negotiating for them so I ask if I can contact the attorney once negotiations begin in the event I cannot reach the agent for an update. I have found that most attorneys who negotiate short sales are quite friendly and will more than likely update you without hesitation to keep the deal together. Afterall, they want to get paid too!
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event the offer is on the “low end” of market value and the seller’s lender is not going to forgive all the deficiency, we need to do what is best for our seller. This will mean trying to get a higher offer either by countering the original offer or by choosing a different buyer.
Should be a question the SA has answered from the lender before the LP is set. Sorry if its an issue thats the time. Im sure you know of SS coming back much higher than the offer. Lets not kid ourselves you need a buyer and to get a buyer you need an attractive price. Thats the game The best interest of the seller is to get the house sold. If there is debt forgiveness even less reason to care if the bank just wants out. Its a gamble on everyones part.
I never allow the buyer’s side to be placed on the 3rd party authorization form. It’s against our office policy and our licensing law. Confidentiality. Thats ludicrous an authorization allows specific information to be obtained. For example checking a status.
Who cares who calls? Nothing there is confidential. Why waste time going back and forth if one call can get an answer? Makes no sense.
So whats the difference if you call or the BA calls?
Sometimes they have an attorney negotiating for them so I ask if I can contact the attorney once negotiations begin in the event I cannot reach the agent for an update. I have found that most attorneys
Thats a breach of confidentiality and your ethics by your own description the agent can not waive a clients confidentiality without a 3rd party authorization. Sorry.
So make it easy. Make a simple 3rd party authorization for the BA and if they have a status inquiry let them call. Theyre not negotiating anything and lets be serious any negotiation anyway relates to valuation and thats the lenders decision not the sellers or the SA.
If seller’s lender is not going to forgive all the deficiency, we need to do what is best for our seller. If my memory serves me correctly thats a disclosure issue depending on what SS addendum you use. The buyer has a right to know whether it might affect the SS up front.
The issue is easy. Does the lender want the house? Yes or No?
Is there forgiveness? Yes or No?
Does the lender have a problem with the LP? Yes or No?
Does the property have issues and does the lender know?
Thats all known before I sign the offer or should be.
Lets be serious you know the market. You should know whats at the courthouse on file.
If you have 250 on paper the house probably isnt going for 60. So what will the bank take? Ballpark? Dont know dont list it until they know.
Why make your job harder?
If the debts forgiven the house has problems act like adults and get to work. Two minds working together are better than one. The squeaky wheel gets the grease. The quicker you can move the file the happier they are. Give them a reason to work quicker. Reputation. My reputation gets me what I want.Why? Because Im proven over time and when I ask I have a need. I easy to work with because there is no BS.
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I was merely giving you the opinion from a listing agent's point of view on why you are probably not getting the communication you desire as a buyer. I apologize if your experience has been less than pleasant with listing agents who do not communicate where they are at in the short sale process. We update weekly to all parties to the transaction via email…If you are dealing with a technically- savvy listing agent, you may get lucky with them using a web-based portal you can log onto to obtain such status. There are several out there like the Short Sale Commander, Real Access Pro, RES.NET, just to name a few-
Also, currently the 3rd party authorization form is not limited to “status updates” … The banks do not have time to have a separate 3PA form to update buyers- Perhaps a small community bank would consider it but not one of the top 5 federally Insured banking institutions or credit unions we typically work with …Furthermore, when an agent calls into the loss mitigation dept to get a status update, the bank rep typically asks for the seller’s social security #(s) and personal information to make sure you are indeed the person listed on the 3rd party authorization… Banks using the Equator portal will send secure updates and tasks to the listing agent directly. Communication is definitely available- Being argumentative and condescending to the listing agent would be one reason they would not communicate effectively-… Just saying!
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