Hello! I'm having trouble getting an answer to my question. Basically, I am the buyer of a B of A short sale - 1 loan, don't know about MI. We received the counter offer worksheet and accepted about 2 weeks ago. The listing agent said to go ahead and proceed with my financing and appraisal, but I said I wanted to wait until I got written approval. Well, now he is telling us that the negotiator has had to put our file on hold until I get my appraisal because if we let the "clock" keep ticking while I get my financing in order, too many days will have gone by and the Equator system will automatically close out the file. I can't find any information about this and I'm beginning to suspect that the LA is just saying this to force me to proceed with the appraisal so I am ready if/when we do get approval. I want this over with as quickly as possible, just like he does. But I'm nervous about spending my money when we don't really have anything in writing. My loan officer will accept the agreement with the sellers, so I COULD go ahead and proceed with the appraisal. I just haven't heard of this in all my research. Can anyone just tell me if Equator does indeed have time frames on how long a file can be open? I don't think I'm getting the whole truth here.
The only time a file would be put on hold pending an appraisal would be due to a value dispute in which the lender would ask the buyer to obtain a 3rd party certified appraisal and submit for consideration of a lower contract price. This would mean that until that appraisal is received by the lender, the file is on hold. Was a counter offer made? Is it possible that the lender/investor came back with a counter offer that is too high and the selling agent started the dispute process? Although rare, there have been times that the lender counter offers, the buyers accept and then the investor comes back wanting more...prompting the need for a value dispute/appraisal.
You may want to have the listing agent and selling agent sit down at the table with you and lay it all on the line. There may just be a miscommunication somewhere (I know you heard what you think I was saying, but I'm not sure what you heard is exactly what I meant type of deal).
Just remember that you are all on the same team. It's not an "us vs. them" situation. You all need to know what is really going on in order to make the necessary decisions. Good luck!
Sounds like you need someone to represent you in this transaction. No appraisal till you see the approval letter.
I am ABSOLUTELY SHOCKED..
that after doing short sales, Angela would still be so trusting of humans in general, much less real estate agents. :)
And as a few people pointed out, Bank of America will not speak to Jennifer without the Authorization. Somehow Jennifer's role as a principal momentarily blind me of that fact.
So that leaves my last thought:
if your agent can't get some real evidence of her statements as the others have mentioned (Equator messages), and the other agent is being uncooperative, your agent can always put the problem to the Listing Agent's broker.
Everyone is accountable to a boss somewhere. Good Luck!
And, you know...she mentioned that her agent had never done a short sale before...so sometimes people who are experienced with it use terms/verbiage/etc. that inexperienced people will not understand (LOX, POF, DTI, LTV, etc, etc, etc) and so even though they are relaying accurate info, the info is not being interpreted correctly (or relayed by the inexperienced correctly).
I was reminded of this when dealing with a new agent last week. I just rattled off information in an email using my abbreviations, etc. that I've learned over the years as working for attorneys and in the lending business...and the agent didn't understand much of it because this was only her 3rd short sale, but the first where she is a seller agent.
If the buyer agent is inexperienced, it is also very, very possible that the lender countered, the seller's agent stated, "I think if you counter to x dollars, the lender may accept it" and the buyer agent took that as an acceptance of a counter and now it turns out that the lender will not go 1) less than that or 2) came back with a higher counter and now the buyer needs an appraisal to justify their offer.
If I cannot trust the very people I work with...then it is a sad world. :)
I'd always suggest verifying that there are no miscommunications...and if there are not, then getting to the bottom of the issue and seeing what happened there.
Sounds like we have several Buyer agents here. Most of you are in california. I am in Texas and when we close its not done at the bank but at the Title company. Bottom line for Jennifer is this. ONE she needs to be represented by an experienced SS agent.
Two: I am surprised that the listing agent and seller would accept an offer without a preapproval from a Buyer and earnest money.If I understand, the listing agent is asking her to do is to step up to the plate and be good to go once they receive final approval. Its only fair as Jennifer as the Buyer has the property tied up as the seller can not accept any other offers and I am assuming there is a signed and executed contract with earnest money in Title or where ever California laws require earnest money to be held. It took me a while to learn but in my state the buyer can walk right up to the day of closing and I personally do not want to carry someone for 30-60 days only to be told by the buyer that "we changed our minds" after I have worked to get approval. Seems to me the cost that jennifer wants to delay is just another part of buying a home. Thats my two cents worth.
I'm not sure where you go that info from, Larry. She stated her financing is ready to go pending appraisal and SS approval...
Bottom line, get to the bottom of it. Get the seller's agent and buyer's agent together and find out what is really going on. It's, hopefully, just a miscommunication/misunderstanding that can easily be resolved. But, since none of us are involved in this contract or situation, we cannot give real advice.
And, I do agree that you really need to have an experienced Short Sale agent. When your new guy realized you were putting an offer on a short sale property, he should have referred you out to an experienced SS agent...or at least had one working with him.
Agree Angela...after I posted I read some more and saw that she did have an agent and that she was prequalifed,approved and looks like she had done everything except have her lender do the appraisal for the final underwriting approval on her loan and the listing agent wanted her lender to do their appraisal before the final release and acceptance so if for some reason it did not appraise He could introduce that info into negotiations.
From my experience ,especially with BOA once I get an approval I don't want to have to go back to get a revision.
In my state we have a short sale addendum that is added to the contract that essentially gives the buyer, if they purchased an option period, another 10 days to walk away AFTER YOU RECEIVE THE APPROVAL/release LETTER FROM THE SERVICER. I guess what I am saying is I want to know the Buyer is committed to actually purchasing the property and to prove that to me by doing their due diligence. I ask the Buyer Agent to place the earnest money with the Title company along with a signed and excecuted contract just like any other RE contract so we have consideration. I then ask them to do their inspections of the property which will usually cost them 250-300 dollars so if they find something they can't live with then they can walk then rather than waiting 30-60 days for approval. I also use it as a thrid party tool to show the servicer I/we are not trying to low ball if there are things wrong with the property.
So now that I have answered a question that was not asked I will go over to time out and be quite. Thanks for your feed back...Larry .
Two sides to this story. First, there is no way B of A is making ANY buyer obtain an appraisal before moving forward. B of A will just set a closing date ONCE they send the listing agent the approval letter. The closing date WILL be on the letter.
I know you're trepidation about getting an appraisal WITHOUT an approval letter. I do see your side and also the listing agents side. She/He is trying to make sure that you do your appraisal, it comes back ok, and the loan proceeds forward. Basically, this is NOT a bad idea for all involved. If YOU are serious about buying this property, frankly, why not? Given how long short sales take, she/he is trying to speed up the process for all involved. This could be a good thing for you. I think the best way to address this, is to ask for a refund of the appraisal cost if short sales does NOT get approved. If you are serious about this property, I would go ahead and get the appraisal, make sure it comes back and there are NO problems NOW rather than wait til later. This way you are that much farther ahead, so that when the approval DOES come in, then you are basically ready to close. This is a good thing and will shave off time for you in getting into the property. Listing agents are watching the ticking clock for all involved. It's very stressful to finally get an approval and then start waiting for the buyer to comply with all things needed to finance their loan and get approval from their lender. Only to have the lender not be able to comply to the timelines and then force the listing agent to ask for an extension and HOPE it is given. So NO...equator and B of A do NOT force u to get an appraisal to move forward. I see how the listing agent wants u to get all your loan requirements out of the way, but she/he could have explained this to you in a better light and why it is a good idea to get everything out of the way, so that WHEN the approval letter comes, u are that much closer to closing and getting what you want. With that said...if you truly want the property, ask for a rebate of appraisal cost if it does not get approval. Remember, the listing agent isn't doing this for their health..they are trying to get an approval for ALL INVOLVED...THEM in getting paid, but also getting an APPROVAL for YOU to get what YOU want and that is to finally OWN the house.