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 Denise Orrico on
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Judi and Bill,
I am having technical difficulty replying to the thread- ? I hope you get this post....It will not be in the location it should be-
Judi, I admire your passion and agree w/ you 100% on everything you posted-I just sent you a friend request...I hope we can chat again regarding the GSE issues...
Bill, I hope there are no hard feelings. Your frustration is warranted as we are seeing exactly what you described just about every week in our office since last Oct… Long gone are the days where we get it right on the first try- In addition to the over-inflated values, lenders are selling off their non-performing notes and we have to start all over again with the new servicer to get re-approved, often w/ different outcomes- It’s Crazy and so frustrating. We are moving backwards- It's pathetic on so many levels!
I am not sure if you are willing to go on camera Bill, but it might be your "Divine purpose" to fight with us against these unethical ways of doing business- There are a couple of seminars and symposiums coming up in March and April that will cover the issues you are facing. As agents, we are seeing this in all areas of the country. It’s just now coming to the surface and it will only be a matter of time before the media gets ahold of it.
NAR has been working with members of Congress and the various lenders to try to resolve this- It won't happen overnight but hopefully it will start a move in the right direction.
Like Judi, we have documented several of our problematic short sales which have tanked recently due to issues like yours-This has not happened for several years- The process was moving along rather smoothly until late 2012...I am hearing the same story from other brokerage firms across the country.
We also have a shortage of inventory which makes it a seller's market- Didn't think we would see that for a few years but it is happening, and it's driving up the values rather quickly. Currently, I have 5 buyers but no inventory-How sad is that?
I am hoping your short sale has a happy ending Bill- For what it's worth, I would really like to know how your transaction pans out...Keep the Faith and stay on the listing agent to fight the value if needed. I am hearing the BPO values are not the issues these days, it's the lenders that are minipulating the market by adding inflated value...They are also not releasing their REO inventory into the mainstream to control market supply and demand... Apparently it's working! ...Hang in there! Good luck!
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Permalink Reply by Tom Miller on
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I agree too. Too many buyers don't commit, and walk away because they are not patient, or their agents do not given them realistic expectations of the short sale.
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Permalink Reply by Smitty on
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I don't think this is new. We've always gotten this info I think since last summer even. I can remember doing a few sales last summer where that was requested.
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Permalink Reply by Paul Antonelli on
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Actually that's nothing new and not just from BOA. Some time ago most of the lenders went to no longer accepting a letter stating that a buyer has enough $$ to buy but requesting a copy of an actual bank statement in the buyer name. I have a property listed now and have received two offers so far. When I told the agents I need bank statements both buyer withdrew their offers. That only tells me they were not serious buyers, if they were they would do anything to secure their place to buy. Better off finding out at the start then half way in.
Paul Antonelli
That Short Sale Guy .com
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Paul with all due respect if you agreed to disclose a buyers finances to the seller and the lender you should be sanctioned.
"When I told the agents I need bank statements both buyer withdrew their offers. That only tells me they were not serious buyers, if they were they would do anything to secure their place to buy. Better off finding out at the start then half way in." It would tell me they have an agent who appears to be violating the Articles of Ethics not acting in my best interest.
Paul are you serious? How can you be so foolish to even say such a thing? No one has any right to see a bank statement. None. Especially the seller or someone in an adversarial position. You need to do some serious reflection.
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Bill, I have done over 400 files successfully and have a 100% success rate for the last 4 years. So I guess Im doing something right. Even though the lenders are not a party to the contract, if they tell me they wont entertain a short sale on a contract without the requested docs I will get them, because I have to do what's right to protect my seller and their financial future.
We will have to agree to disagree on this one.
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If youve sold 400 youve done 400 successfully doesnt make you right.
Lenders are not party to the contract????
Whats a third party contingency with the right of approval? Not party to the contract????
You must be joking
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Ok, where does the lender sign the contract?
Or any addendum?
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Dont have to sign it if they are granted the right under the contract.
Why is there a short sale addendum? Because it lists their rights and duties under the contract
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Permalink Reply by Ricardo E. Giacomán on
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Paul, I agree with you. Whenever we're working on Short Sales, most likely we'll have to do what the banks requires if we want to get the short sale through. These are Short Sales and now the banks have to be involved in making sure buyers have enough funds for the purchase and EMD. If it were a regular sale, Banks wouldn't be asking for these documents.
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And you guys jump through hoops and get little in return
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Permalink Reply by Robert Boerner on
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Showing proof of funds is standard practice in my area. It may not be revealed prior to contract acceptance but it is usually a condition of the contract within 7 days of acceptance. If a seller requests POF before reviewing offers, that's fine. The buyer is not required to provide it. But, the seller is not required to accept the buyers offer either.
(Account and social security numbers are always obscured.)
If I have a buyer client making an offer on a house they really want, I explain that we need to make the offer more attractive than the others the seller will receive. (Yes, our market is that active right now and multiple offers the norm.) The dollar amount of the offer is not the only measure here as the terms and supporting docs are key in getting an offer accepted. And if that means providing DU certs, credit scores, bank statements, or anything else, I will do it with my clients approval.
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