I have closed many short sales with BofA. In December I had my first one for Equator. I took this listing over after another agent who had it listed and brought in an offer was denied short sale. There was several months separation in between the time I took it over and the original first short sale denial. The investor denied a $289000 offer at that time. It is a condo. Complex has history of several defaults.
Make a long story short, there was several glitches in my uploading into Equator and the Seller was inadvertently locked out of his access and it took weeks to reset. That set us back.
I attempted to go thru the original short sale channel and was told to send to Equator. So I did. After several attempts to communicate with the negotiator and his manager it was escalated.
Even though customer service kept telling me everything was fine and that we had submitted all of the documents needed I was concerned there was no communication. I had questions and I emailed and called and they were not getting answered. I escalated twice.
2 weeks ago went to the office of the President and asked for help. The investor involved in this particular transaction had no intention of allowing short sale. This was known up front by the first negotiator.
I knew this as the 2nd negotiator came back with the price of $289000 based on the first failed short sale several months ago. She kept asking me when I took the listing......
In other words we never had a chance from the beginning. I was never informed or communicated with that the purchase offer sent in was inadequate. (Keep in mind the offer submitted was above the documented recent closed sales in this complex)
Tomorrow is the trustee sale. Today we got short sale denial on purchase offer. The buyers were not going to increase their price and back up offers certainly were not going to increase their price. The comps did not justify. Question of buyers appraisal coming in.....
Guess what? The investor will get a bail out from the government on this one. BofA will turn it in and the investor will get a huge chunk from the taxpayers based on the original loan PLUS still be able to turn around and sell as REO.....
I do not see this as an issue with Equator. I believe Equator once the bugs are all worked out will actually help streamline the short sale process as evidence by several closed short sale transactions.
WHAT IS AN ISSUE-is the deliberate withholding of information from the first negotiator and lack of communication period. Had we known up front the investor intent we would not have wasted everyones time(about 3 months) No one told me what the least the investor would require. I never had the opportunity to even discuss possible seller contribution...The market certainly would not have supported the price the investor wanted. I know the investors called the shots on this. But again, simple communication up front could have avoided the length and drama of this failed short sale.
I expressed that to the office of the President of BofA today. It is understood there are no guarantees in a short sale. But when it is a known fact it is doomed at the onset in fair play communication should be exchanged to allow everyone to go their ways and such.
I do hope the Office of the President will look into this and institute policy changes to avoid this scenario from happening again.
Do you think the Obama administration meant for the bail out to allow for the games these investors are doing?