Hi folks, Have you noticed that the contract price means absolutely squat these days? Nada. Zilch. It used to be that once a purchase price was negotiated you could be fairly certain that was the price the property would close at.
Not anymore.
Properly pricing real estate has always been one of my strong points. I know the price is right. The Buyers and Sellers know the price is right. The ones having the problem are the Lenders.
It doesn't even matter what side of the transaction the Lender is on. If they are the Short Sale lender they want more money and if they are the Buyer's lender they want to lend less money. Now this really gets interesting when it's the SAME lender!
Recently. I had one of my Short Sales under contract at $100,000. Based on recent comparable sales the agreed purchase price was spot on market value. The Short Sale lender was Bank of America. The Buyer's Lender was also Bank of America.
After waiting for several months Bank of America finally agreed to the Short Sale but only if the purchase price was raised to $107,000. The Buyers, who really wanted the property, had no problem with this so we raised the contract price to $107,000 and both parties signed off on it.
Bank of America then gave us the written Short Sale approval and we moved towards closing. The following week the appraiser came out for the Buyer's mortgage company (Bank of America) and appraised the property at......$107,000. All was well. Until......Bank of America ordered an appraisal review. The value was changed to $97,000!!
After another couple of weeks of negotiating we were able to get Bank of America to agree to do the Short Sale at $100,000 and the Buyer agreed to bring the extra money to closing to get the deal done at.....$100,000. We were right back where we started from. Maybe they just should have accepted my price to begin with. %$#&*^s!!
Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.
Want to find out more? www.CentralFloridaShortSales.com
Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://CentralFloridaShortSales.com
http://ShortSaleSuperStars.com
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Tutas Towne Realty has already successfully negotiated Short Sales with the following Lenders and Investors.
Chase Short Sale,Sun Trust Short Sale, GMAC Short Sale, Wells Fargo Short Sale,Bank of America Short Sale,USA Bank Short Sale,PNC Bank Short Sale,Citi Short Sale,HomeEq Short Sale,Fifth Third Bank Short Sale,ING Direct Short Sale,GreenTree Short Sale,Capital One Short Sale,ASC Short Sale,First Horizon Short Sale,E-Trade Short Sale,Transland Financial Short Sale,US Bank Short Sale,IBM LBPS Short Sale,
Nationstar Short Sale,BAC Florida Short Sale,Real Time Solutions Short Sale,Fannie Mae Short Sale
FHA Short Sale,Selene Finance Short Sale,DTA Solutions LLC Short sale,Flagstar Short Sale,IndyMac Short Sale
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Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales, Orlando Florida Short Sales, Celebration Florida Short Sales, Winderemere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.
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That sounds like a rerun of one of mine. I thought I was the only one in the country with short sale problems.
All joking aside that is a common proble with the banks.
Bryant ~ I believe the workers at the bank could care less. They are inidated with short sales, forecloses, Realtors, Appraisers & just want to go home. I have noticed that Bank of America is losing their edge with quality and service.
Bryant- I have run into this several times with B of A. I sometimes thin they are not sure which came first. It just doesn't make sense to them. And how they react to different situations doesn't make sense to us. I think they hired all of their staff from another planet. How else could you explain how they try and do business? It just doesn't make sense.
Have a great Turkey Day!!
BB - There is no logic in what the lenders are doing today. If it's any comfort, I just brought a cash deal together for a non-distressed sale well above appraised value for the home and it fell through. Why? Well the greedy seller was doing it as an entry only listing and claims that she never gave a thought to compensating the buyer's agent and even though the entry only agent listed compensation, she's not going to go through with the deal because she is responsible for the actions of her agent.
So, if it's not the bank's killing the deal. It's the attorneys. In our state, case law says I am not entitled to a commission until the deal closes - even though I delivered a ready, willing and able buyer. Glad to see that you could keep your deal together.
Bryant,
Contracting with some one even an owner with out the ability to deliver a clear title, maybe required, but it's hardly binding! Your opening is misleading!
By the way. Great Job!
Bill
Bryant - I had the same problem with BOFA and BOFA. However, BOFA short sale lender would not adjust the price based on BOFA mortgage lender's appraisal. They closed the file. Enough said.
This shouldn't be all that surprising. When was the last time you had 2 siblings agree on everything? I know it rarely happens in my family.
I have a better one, BofA REO Listing, BOfA Accepted 360,000 as a sales price, buyer used BofA for their financing, appraisal came in at 350,000. BofA would not finance the property based on the sales price of 360,000 and instead of giving the borrower a loan for 80% of 360,000, they accepted a new selling price of 350,000 instead of financing the buyer for an 80% LTV based on 360,000?????
BB - I just had a similar thing happen. Don't you just love going around in circles? One hand doesn't ever seem to know what the other one is doing.
Which came first? The chicken or the egg. Talk about bureaucracy!
BB - why is it that this does not surprise me at all?! At least they were able to agree - that's progress, of sorts.
Jeff
Im noticing a common thread....BOA. My Mortgage office used to have our own name for BOA. Can you guess what it is??? ;-)
Send one of those over here ASAP! Our BofA story is the opposite of way over pricing and apparently they want to foreclose! ~Rita
I am beiginning to believe that communication rarely happens until something stupid happens...This looks like a confirmation.
Hi Bryant... I think Nathan said it best. I am seeing this same viscious cycle here in Texas. Somewhere in the process communication and common sense needs to be factored in.
Bryant,
Why is a short sale advantageous to a seller? The grief that so many agents describe in their posts hardly sounds like something a seller should put themselves through without there clearly being a great reason to do so. I know a short sale is supposed to be less of a negative impact on the sellers credit then a foreclosure, however, is it so much so that going through the added grief of months of escrow to have it fail over 50% of the time the best option? I sure hope that agents fully counsel their short sale sellers in the realities of the short sale process so the seller can make an informed decision.
This just boggles the mind.
Bryant, we don't have very many short sales in our area fortunately, it sounds miserable. It's tough enough dealing with lenders for new loans these days.
Hey, I noticed that you mentioned on a Blog comment you use an International Site to promote your listings, I'd love to know more about that when you get a chance. Thank you! -Monica
What a mess. The left hand has no clue what the right hand is doing yet both are connected to the same bank.
Glad you got it closed.
Well Bryant, at least you got it done. We had one with identical circumstances and B of A refused to adjust the short sale approval price after B of A appraiser wouldn't appraise to the contract price. Buyer, didn't have any extra to bring to the table and couldn't get the mortgage because of appraisal.
OK Michael. You have to come back and let us know the true meaning of BOA.
Bill lets explore your comment a little further. So based on what you are stating a:
In fact you could say that there is no such thing as a binding contract since a contract by it's very nature requires an action that may or may not be fulfilled. A contract is an agreement that states if you do this then I'll do this. OR if this happens then this will happen. A contract creates a bind. But of course any binding can be broke. In my opinion your logic makes no sense.
I have to go to work but will be back. Thanks for stopping by!!!
Allison, Gabe, Kevin, Monica and Kris, You guys sure are up early. Thanks for waking up to my post :)
Talk about the right hand not knowing what the left is doing. That's a great story. You think that by now that these big institutions would be able to streamline this whole process.
Bryant my friend,
You're trying to split hairs from a bald head!
If the seller can't deliver a clear title it doesn't mater what the price says. Your seller made the "contract" at a price his bank refused, because it was contingent on his bank's approval it was no longer binding on the seller.
It's the same for the buyer's financing contingency.
"there is no such thing as a binding contract"is a pile of testosterone laced bovine droppings.
"A contract creates a bind." Is absolutely right as far as it goes!! "SUBJECT TO THE CONTINGENCIES IN IT!!"
Take that, you short selling home owner's savior!
Happy Thanks Giving to you and the Revend.
Bill
Why would they order an appraisal review to fight the value they just fought for? It makes no sense what these lenders are doing these days!
OK Bill, What the hell are you talking about". What's with this load of horse peanuts "testosterone laced bovine droppings."? Are you cooking again? Happy Thanksgiving to Brenda. Oh and to you too.
BB,
We've only got to hold out two more days ant it will be time for Peace On Earth!
:>)
Bill
Chase is on my sh*t list from my personal experiences of the while. They don't care a bit about the hard working middle case. (I better stop now....)
Happy Thanksgiving.
Nathan...
I think it was the egg. Cluck Cluck :)
Hun...
Are you and Sir William having fun? :)
You two are so good together :)
TLW...ROAR!