Note to short sale lenders: 1,000’s of Realtors are trying to help you. Please let us help.

Time after time after time, I see this.

The actual short sale drama below is just one of tens of thousands playing out right now. We can help lenders mitigate their losses. Lenders: Please help us help you.

Case in point:

Bank of America has stopped considering back taxes as an allowable closing cost.

We’ve been working on a fixer upper short sale for more than a year.

  • Must have had 40+ agents walk through.
  • Had about 10 different buyers submit offers ranging in the $80,000 to $115,000 range.
  • Had it under contract 4 different times.
  • BOA counter-offered the first 3 buyers into oblivion. Current buyer hanging on by a thread.
  • Met 6 BPO agents or full blown appraisers at the house. Not a typo! SIX different appraisers were sent.
  • One BPO agent sent in a value of $150,000, which is $35,000 higher than the highest offer we got, or 30% to 45% higher than 10 different buyers were willing to pay.

During the delays, the $8,000 tax credit expired which caused values to decline again.

Now that BOA dragged their feet for a year and blew off good buyers, there are $2,000 of unpaid property taxes.

BOA is unwilling to pay the back taxes. “Not an allowable closing cost” they say. The seller doesn’t have the money and the buyer is outraged and ready to walk.

Stepping over the dollars to get to the dimes

If BOA would have taken valid short sale offers we generated a year ago, there wouldn’t be any delinquent taxes, they wouldn’t have had to pay 6 different appraisers to give them unrealistically high opinions of value, and the list of extra costs to BOA goes on and on.  BOA or its investor lost at least $15,000 in foreclosure costs, appraisal fees, lost payments and many other incidentals.

Now that they’re running off the buyer with the $2,000 back property taxes, we’ll be back to square one. Again.

By the time we line up a new buyer who would pay the seller’s property taxes, or if it ultimately goes to auction, BOA will lose more than the $2,000 they’re demanding now.

Is BOA losing this money or is it being lost by an investor who is relying on BOA to service their loan?

Note to anyone from BOA or its investors who may be reading this blog: This case study is not an exception. Thousands of Realtors nationwide are trying to help you mitigate your losses. Please help us help you.

Respectfully,

Dave Halpern, Real Estate Broker, Louisville Short Sale Expert Realtors

(502) 664-7827

 

 

                                                                             

For specific home sales information or free Market Analysis contact:

 

Ellen Dittman, Watson Realty Corp.

 

Reo.ellen@gmail.com

 

904 535 1199 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short Sale Help!

                                                 

     Watson Realty Corp.        

153 Blanding Blvd

Orange Park, FL 32073

Cell (904) 535-1199

Office (904) 269-1270

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Comment balloon 6 commentsEllen Dittman • August 22 2010 07:49AM

Comments

You story provides several reasons for buyers and their agents to avoid short sales. Unfortunately, most never reach settlement regardless of the efforts. Most buyers are better to focus on the inventory of REO properties.

 Blooming for Maryland home buyers.

Posted by Roy Kelley (Realty Group Referrals) over 9 years ago

Hi Ellen, "Stepping over dollars to get to the dimes" says it all.  Great post.

Posted by Dan Edward Phillips, Realtor and Broker/Owner (Dan Edward Phillips) over 9 years ago

Ellen,

These banks don't have a clue. Great post!

Posted by Michele Miller ~ REALTOR®, LMC, HSE, CHS, SRES, CMRS, 'Helping You Make the Best Move" (ERA Key Realty~Worcester County Realty Group) over 9 years ago

I agree that the banks are making things worse.

  • But is the buyer getting a bargain on the property?
  • If the buyer paid the $2000 would she still be getting a bargain?

Buyers shouldn't let a deal fall through for a few dollars if they are still going to be getting a bargain.

We had a short sale that sold for $250k and the buyer was getting a real bargain. The bank wanted the seller to pay $10k with a 7 year no interest note. The seller refused. The buyer knew that he was getting a bargain and agreed to take on the 10k. The deal we made with the bank was this.

  • The bank insisted the note be issued to the seller.
  • The buyer made a written agreement to bring $10k cash to closing to pay off the sellers note.
  • So the seller signed the note and at escrow the buyer paid it off with his 10k.
  • Everyone was happy.

 

Posted by Bill Travis, Broker/Owner (Captain Bill Realty, LLC) over 9 years ago

I considered if the buyer was getting a good deal, that it would be worth spending the money that the bank asked. Sounds fair. And your deal sounds like everyone worked it out and I wish more would think outside the box.

Posted by Ellen Dittman, #1 Stop for NE FLA-JAX/OP 904.535.1199 (TEXT OK) r (Watson Realty Corp.) over 9 years ago

Ellen - thanks for the reblog. If Realtors pooled all their stories about inefficiencies in the market it would make quite a story.

Posted by Dave Halpern, Louisville Short Sale Expert (Keller Williams Realty Louisville East (502) 664-7827) over 9 years ago

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