Replies to This Discussion

Permalink Reply by Jorge Guillen on August 9, 2011 at 12:58pm

Do not get discourage, it happens most of the time, they try to get as much as possible initially and it is obvious that a higher price will cause no traffic; about considering a lower offer, as long as the offer is within the market value range it will be fine.

Good Luck,

Jorge

Permalink Reply by Linda J Reibenstein on August 9, 2011 at 2:57pm

I agree!  Don't get too upset.  Just keep telling them the traffic has slowed down.  They usually lower the price and a bit.  If you get an offer, just submit it.  They will counter if it is too low.  Which Hafa are you with Loan resolution or AMS? 

Permalink Reply by Steven Pawera on August 9, 2011 at 5:29pm

They say you always remember your first time :)

 

Price reductions aren't addressed in the supplemental directives.  How did you wind up with an overpriced approval price?  I would go back and refute the price the same way you do in any short sale.  With lots of information.   And if they are unreceptive, send them a QWR.   It's not good when a servicer ignores credible information simply because..  the longer they can ignore a short sale, the longer their servicing income continues.

Good luck!

Permalink Reply by Joe Beauchamp on August 10, 2011 at 5:28pm

I suspect this is HAFA and not BOA (where I do HAFA and other short sales, mainly) - I received very specific guidelines to dispute the number.  You need a CMA of at least 3 properties closed prior to the BPO and no older that 120 days prior to that. You also need an offer or a separate BPO paid for by you.  I love this part, you also need to include the listing amount supplied by the bank that you are disputing or it will be rejected.

A negotiator at AMS added that the top CMA must be 20% higher than the lowest, too.

 

OK, if you aren't laughing at the thought of meeting that CMA criteria in most markets today (I'm lucky to find 1 or 2), then wait for this.  They will not consider your dispute unless it is at least 20% lower than their number.

Although I was unable to find anything more than the bank will say "hi" to you every 3 wks until your 120 days are shot and they kick it out, every 3 wks, you can tell them that you are getting no offers, etc. and they are supposed to lower the number for you to list.

 

I learned on 1 file on a subsequent call in, after all this, that the negotiator miscalculated the number.  This particular AMS rep always recalculates - made a monster HUGE difference!  In fact, (and in typical BOA irony), this file had a BETTER offer than that when LRC HAFA wanted way more.  The buyer walked, it went to AMS and now AMS wants it listed for a few thousand less than LRC had already turned down.  You have to just love BOA long range "thinking".  [But, remember, BOA is paid to manage accounts - the longer the account is there, the more they make.]

I learned one other thing, since I am not that used to short sales w/o offers - that the number you get, at least from BOA's HAFA is more or less the BPO.  Good to know, since 90% of BPO ain't a bad short sale, etc.

 

So, yes, they will consider less - maybe after your buyer walks - depending upon their net needed, as usual, etc.  However, if you can, throw in everything which shows that your number is good and theirs is from the BPO agent who was paid $35 to drive by and throw out a semi-random number, it would not hurt.

Permalink Reply by Steven Pawera on August 11, 2011 at 12:58am

Joe,

 

When you wrote, "..since I am not that used to short sales w/o offers..', it reminded me,

why would anyone do HAFA WITHOUT an offer?  It's hard enough when you have an offer - which is the only way I know to determine real market value (if the listing agent is doing his/her job).

If you have to do HAFA, don't let them  get an interior BPO or appraisal before you have an offer.  And once you have the offer, follow the rules for ARASS.  BAC particularly still doesn't really give a damn about the HAFA guidelines, Treasury doesn't have the authority to punish them even if they wanted to, and HAFA still sucks.  Did I forget anything?  :)

The other points for everyone to store away:

• you can get a copy of the BPO (for $50).  Have someone else call the same BPO agent and order one.  You don't believe for a second he is going to do all that work again, do you?
• an appraisal (or even a desktop review signed by an appraiser) trumps a BPO.  Hopefully you qualified the buyer and his level of commitment to the process so he will be willing to pay an appraiser.  It's not like the seller is (in most cases) spending it on his mortgage payment any more.  :)

All the best,

-Steve

Permalink Reply by Bryan L Dais on August 11, 2011 at 2:42pm

Tracie, there usually is a tolerance within a range somewhat below the listing price they give you. Can't tell you exactly what that will be. You'll probably have to test it with a lower offer and see where they counter. They will usually let you know what the minimum net is that they can accept. To get it very much below you may have to wait for a period of time when they are willing to have a new appraisal done. Probably around 90 days. It's really tough when the valuation comes in higher than what someone will pay for the property.