I have a co-op BOA short sale listing. We've had a few price reductions since it was listed in Feb, but it's still a bit high. Even cutting my commission, if I lower it any more, they won't make their bottom line and they said they won't accept less. They have contacted me via equator, to disucss with the seller using their partner auction company (auction.com) and sent me the sample contract. I discussed the contract with the auction company and how it's supposed to work with the listing agent. My commission is protected, there is a 5% buyer premium, the contract is for 120 days and they can hold as many auctions as they want there. All offers need to be submitted via their website at auction.com. Any unrepresented buyer will be referred to me and all they want me to do is hold a few open houses. My seller and I signed the contract. Nothing has started yet, but I was given a contact at the auction company and have been informed for the life of the contract, I will not have access to the property on equator. My question is, has anyone else had any experience with this or any feedback? It seems like a good deal, but you know what they say - if it sounds too good to be true, it probably is.
BOA pulled it from auction.com w/o telling either the seller or me and they did it the day bidding was to start. There were 4 bidders that I knew of that were going to bid - one was going to offer the full listing price. On 8/23 (the day after the bidding was to start), it was not listed on auction.com nor was it appearing in equator. auction.com said it was bank owned and the seller pulled it. After some "debate", they were going to have management call me. Never did. Tried to call the BOA negotiator - voice mailbox full. Sent her an email and several hours later, I get an equator email telling me I had a task. That task was to upload the docs again. It is now back in equator. Auction.com sent me an email saying BOA was reviewing the "valuation". I called all the Realtors that had people that were going to offer/bid and just told them to make an offer as a regular short sale. Since I can't seem to get an answer from anyone, I'm assuming it's back to the old way via equator. What a disaster! One of the Realtors said her buyers were fed up with this and are moving on to another home.
Wow. Again, thanks for sharing. I love these forums. Great to learn from each other.
Sharon, that is typical. When you say the "full listing" price are you speaking of the full auction starting price? or what it was listed for in MLS? If you have a task in Equator, it is back the "normal" way. They won't notify you when they pull it. They have to go through paperwork to get it released from Auction.com so when you don't see it on there, it is in limbo land. They won't notify the seller because all the work is done through you. Once they have all the paperwork completed the property is released from auction.com, you will get a notification from equator to submit your paperwork again. Auction.com should have notified the realtors that it was no longer on auction.com and to contact you, but you did a good thing. I looked it up. What was on there was just a starting price. There is a form you can request to dispute the value, but you have to ask for it. I'm not sure if it is on our site or not. Here is a sample of what is necessary
Thanks, Sharon. BTW, it was the full MLS list price - cash offer. They were going to write it up prior to the auction but then when it was entered into auction.com, they were going to do it there. What really bothers me is that the contract was between the seller and I and auction.com so how can BOA cancel it? They may have had a separate contract but legally, I'm not sure what happens with the one I signed. Their "office of the president", whatever that means, has been in contact with the seller each step of the way. My seller is very vocal and she called them, again, to give them a piece of her mind on how all of this has been handled.
Thanks for keeping us informed - hate to say it is what I expected - another whiz-bang disaster. What did BofA give as a reason for pulling it? BofA is a huge sluggish company and fraught with incompetent actions because of this, at times. So, I'm wondering if this was just a "fast one" and they are stonewalling you or, as often happens, their QC people didn't do such a hot job on their software and the negotiator didn't hit a button in time (with the BofA fail-safe of killing the deal as opposed to escalating to someone to oversee/fix a potential problem). Or, is this the typical "we are BofA and we don't have to care about anything, especially you" type of thing where they started out on a project and just killed it w/o thought or care of any consequence to anyone?
Auction.com is just trouble all the way around, forever trying to muscle into our pockets, first through REO's, now with short sales.
I have looked at their auctions for a while, as a potential investor, usually their reserves are too high. Make any clients aware, new language in their auction says "any liens/encumbrances not wiped out by the foreclosure-Reamain with the property" In Florida that means real estate taxes, code violation fines, open permits, etc.
Wayne, the reserve was set by BOA and a "secret" from me.
Joe, I think this is more a case of BOA not caring about the seller or me. I got a better response from the auction company than BOA. Since I didn't get to go through the entire process, I'd be willing to try it again if BOA just lets the company "do their thing" and see if it works out. I've done BOA short sales before and this one is the most unresponsive one I've dealt with. Even though this is a co-op short sale, I really don't think they want it sold - at least that's their attitude.
Sharon, yes their reserves are not revealed. I know other bidders who were the high bid, only to find out the bank wanted another $20-30k above their bid, sometimes an hour later, sometimes two weeks later.
It's kinda a mute point now, anyway. BOA pulled it from the auction on the day bidding began and a week later told me the guidelines changed and it's no longer quailfied to go auction. Lost the 4 bidders but got an offer for full price. Bottom line was $1k higher than they told me they needed and then they came back and countered $20k higher. Lost that buyer and gave the counter to my back up offer. Waiting to hear on that, but I doubt they will go that high. I don't believe it will appraise for that much. I have a feeling this will go nowhere except to sheriff sale and my seller will lose her $3k relocation which she was depending on when she signed her new lease.
Auction.com, REDC Group and B of A have partnered up to sell tons of properties on auction.com's website and thru live auctions. The listing agent will get a lousy 2%, and the buyer's agent, if the buyer uses one, will get 1%...
The buyer's premium is added on TOP of the winning bid price for a total puchase price. Where do you think the 5% buyer's premium is going? Not in any realtor's pocket..but split between B of A and auction.com/REDC group.
This is nothing but them holding auctions to sell these non performing assets at ridiculously high prices.
Kudos to them... they found a winning formula for now.....