HSBC short sale department dangerously denying short sale approvals!

I have a short sale with HSBC, both 1st and 2nd. Offer was sent in at a fair price. Their short sale dept. in Tampa comes back and denies. Their BPO was SOOOOOOOO far off and too high

for this home to even appraise at that price.  Buyer came in with 2nd offer almost $50,000 higher than 1st. Just got word the 2nd offer was turned down. Their BPO is at $370K,

2nd offer was at $297K.... BPO agent was a "conflict of interest". He was from a huge REO company over 40 miles away, and HE didn't even show up for BPO. He sent his assistant who does 50 BPOs a day and got lost twice.  This is a joke. Buyer has walked. Have a final offer

from another buyer at a price around $319-$324. Prices have gone down in this area due to the many short sales and REOS. This home also has about $20,000 of "Issues".  And is 3 doors away from the 405 freeway ramp.(u cannot change this)  I am going to go to supervisors and heads of HSBC. I have heard from numerous agents that HSBC does this to go into foreclosure purposely. Can anyone help? We just received word that HSBC is in trouble and being investigated by the FEDS for unlawful practices and their foreclosures are on a moratorium right now until investigation is over. I have complaints from about 30 other agents all over the country who have had serious problems with HSBC's short sale departments and good offers being declined. I will be speaking with the investors on this.  I will submit this final offer that CANNOT go a dime higher due to prices coming down LOWER. Do you have any superiors, or higher ups to contact? Their short sale dept is in Tampa Fl, their headquarters are in Brandon Fl,not far away. President is Irene Dorner, who I will contact immediately among others.

My sellers have medical  problems. Wife has serious fibromyalgia and loss of income among others.  I was also informed they outsource to people in INDIA for BPO valuations. R they insane?

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Do a value dispute to rebut their bpo.  In other words, do your own bpo, supply comps, crime stats, anything to justify your price, then send to the head of loss mit as well as to the negotiator and their supervisors.

Thanks Joe! I am doing this tomorrow. AGAIN. I was asked by their negotiator when the 1st offer was turned down to send in a CMA from me. Which I did with supporting evidence, repairs invoice, etc  "disputing their BPO".

So I guess this time, I will REDO and call it a "Value Dispute" BPO..with all the repairs, stats, etc and go over this person's head and make sure it gets to ALL supervisors, head of loss mitigation dept. etc.. Believe me, this worked for INDY MAC which made me do the same thing.

Don't call it a BPO.  Call it a "Dispute of Valuation".  Otherwise, you start putting BPO in there and they may just think you're "making up numbers" (you know....using REAL numbers...LOL).

 

I would emphatically state that the BPO agent never showed at the property, so how is that BPO valid?  I would also remind them that there are issues with the property.

 

The problem you are going to have, however, is that every time you submitted a new contract, it was for a higher amount.  This is going to look like you are seriously low-balling the lender and they will not take the file as seriously as if you submitted an air-tight contract supported with hard to dispute comps.  Yes, you can justify anything...but if you have each new buyer offering more money, that is going to tell the lender that the property is worth more and they'll probably get more if they hold out.  Make sense?

Makes sense.  Doing a Value Dispute. Waiting to see what happens.

What has work for me here in Las Vegas is to submit valid comp ( sales & Listing) I had several problems with them, and it seem to work, Good Luck, If you have any questios Please call frank 702-540-9803

I had the same issue with HSBC.  Turned in an agreement of sale and they denied it due to the BPO value.  I asked what the value was and she told me $36,000.  I told her that was way off and then explained the repairs that was needed and the recent sales in the neighborhood.    After I got off the phone with them I went out, measured the home, took photo's of each room, and all the areas that needed repair.  I then came back and drafted up a Dispute to their BPO value.

After faxing it over, I called them to make sure they recieved it and had a chance to review it.  They denied my request and said that the comps that I used weren't valued.  One of the comps was the adjoining row home to the subject. 

 

This went on for about 6 months.  The buyer's original offer was $15,000 and then he increased his offer to full list price of $20,000.  Another 3 months went by and I got a letter from the City that the home was going to tax sale in a month.  I called HSBC and informed them of this and that they were going to lose the property for $342 of taxes.  A week later I recieved an email that they would except the offer for $15,000, which was the original offer and not the increased offer.

 

A year went by from the time the home was listed for sale to the day we closed and 9 months were wasted due to HSBC.

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