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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I understand your prospective.
A BPO went out before Christmas and at the end of January the lender stated a price.
It doesnt take 40 days to get a BPO done. We countered and they asked for 6 comps 3 solds 3 listings we complied and thats been 10 days and counting.
The nonsense will perpetuate until you stop it.
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Any SA agent worth their salt will have all of that information in hand when they list the property. This is why I was able to get the valuation down on the same day that I received the counter. We push and push until we get to the end...There is nothing easy about Short Sales as I am sure anyone here can attest to.....What you see as lazy, do nothing people are actually out there fighting everyday to get the best deal possible and to get the coveted approval letter..... yes, as has been said, there are those agents who have not got a clue and will submit an offer to a bank and then wait until the bank is good and ready to answer it but most of us are quite the opposite.
I also want to tell you that the counter that you received has nothing at all to do with financials of the buyer at all! Like I said before there is something going on right now and it is very political and it is very bad and we believe it to be illegal. When you see news reports of the market going up and how the new home markets are rising...it is all a false market and has been manipulated by the government. these sort of frustrations need to be taken up with them, not on us who are out here in the trenches fighting all of this.
There is little if any "investor deals" in short sales any more. The idea that the bank just wants to get rid of these properties is not true any more. They have many alternatives these days. If the bank( in this case Fannie and Freddie) gives an inflated value to a property and because of that, they end up foreclosing on said property, they simply can sell that property through their own program called homepath which does not require an appraisal of the property. They manipulate the market in that way. We are fighting that right now and are trying to get it to stop.
Hope that helps you start to understand what is happening.
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What I see as lazy do nothing people are lazy do nothing people.
When my BA tells me the same that pretty much validates my opinion.
I understand whats up and your comments.
All the more reason for you all to get together and stop the nonsense. Might not be easy but you have to try.
Youre a captive audience they know you need them. When you can show them you dont then youll get their attention.
Wheres the better deal a public sale or with a realtor?
What guarantees do you get with a public sale?
Say no to them unless its on your terms as a group. Get them to give you something.
Thats all they understand.
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No hard feelings for me. Im just trying to vocalize the frustrations of the buyer.
Im a cash buyer and dont think I have sale problems on my place but imagine the stress if five people are lined up to buy and none of them have a closing date and then if one backs out what happens?
Ill be happy to help you in any way I can.
Im down to the wire on mine been going on too long so all I can do is wait.
But theres a tremendous punchline Ill tell you about later that will have you laughing.
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Permalink Reply by Denise Orrico on
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Let's keep a positive attitude and hopefully it will all work out in the end- If it doesn't, you can tell your story to Dateline or 60 minutes!!! :-)
Unfortunately, we are all in this together! (Although it may be a fortunate thing in the end as strength comes in numbers!!!)
Definitely need a good laugh...:-)
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The transaction is between the buyer and seller of the property so the seller accepts what offer they think will close....the bank does not get any more than that one contract.....as far as I know, the banks do not even accept more than one offer at a time any more....I certainly would never give them more than one...the best one...
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All depends on the agent the lender and the contract
Im sure some of these lenders view it as a collect the bids and auction
My SS contract says no backups and the property isnt listed.
So the bank gets a contract waits and calls the SA and says get me some more offers the SA says okay. If its in the contract its legal
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Permalink Reply by Tony Morales on
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see my response to Mike Rizzo
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Permalink Reply by Patrick Willard on
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I see nothing wrong with this. As primarily an REO broker for the past 12 years every client has always wanted proof of funds, especially if there is a larger down payment. I expect an approval letter and/or proof of funds on any offer on any listing, REO, short sale or a non distressed sale. How can I expect any seller to accept an offer if they don't know if the buyer can perform. I also expect earnest money at the time of offer acceptance by the seller. On a recent short sale the buyer's agent didn't want to deliver earnest money until we had lender approval. Her reasoning was "we don't have a contract until the lender approves". WRONG. We have an accepted contract with a short sale contingency. I would expect earnest money with any contingent offer. What if a seller accepted an offer contingent on the buyer selling their home. Without earnest money what's to keep the buyer from still looking while they wait for their home to sell or for short sale approval. Why should the seller take their home off the market and possibly miss another buyer without proof the buyer can actually complete the sale.
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Lets not be confused
"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 have no way to enforce any compliance by the lender if the buyer wants the house.
if a seller accepted an offer contingent on the buyer selling their home. Without earnest money what's to keep the buyer from still looking while they wait for their home to sell or for short sale approval. Why should the seller take their home off the market and possibly miss another buyer without proof the buyer can actually complete the sale.
So what if the buyer keeps looking? The seller is bound by what the contract calls for. If the contract calls for the house to be "delisted" and the seller wants to sell the huse thats what they do. If the contract calls for no back ups thats the way it is.
Allowing these lenders free reign is ludicrous and you guys allow it to happen
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Bill, yes you heard me correctly. The banks aren't so short sighted, or inexperienced enough, to think that just because someone has $200k they will spend more for this $150k house than it's worth.
And a Contract is the obligation, Not he Ability, to complete a contract. I frequently get contracts from wanna be flippers providing "POF" from some "lender" off the internet (they pid $199 for the "POF Letter").
You're right, if the Terms of the contract don't include my ability to interview the loan officer who generated the "pre approval" along with evidence of the required cash to close...shuffle off (terms not accepted).
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Wayne please.
Tell me why you should have any reason to disclose the buyers net worth for any reason?
A contract is a promise to perform. The contract specifies the penalty for nonperformance.
Lets not make excuses the problems with buyers are not in the POF they are with the performance of the agents and the lender.
Improve the performance and you wont lose buyers.
What financially limited buyers can tie up thousands for months on ifs and maybes while they can go elsewhere?
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