LALAs. Largely Acceptable Legacies of Assumptions.
A term from my “corporate days” pertaining to incorrect methods, statements or policies perceived by some to be relevant or “the way things are or are supposed to be” and becoming acceptable “truisms” by others.
I just
got a very frantic call from one of the Realtors for whom
we negotiate their short sales. We
are currently
working on three (3) of his short sales from Bank of America.
He
was beside himself because of the “new policy” from B of
A requiring the seller to pay or come to the table with 10% of the
deficiency
difference. He was
told by more than one
of the agents in his office that B of A recently changed their policy
and now requires
the seller to come to closing with 10% of the difference between the
payoff and
loan value!
While I had not heard of that policy change B of A or any of my resources, I was nevertheless interested in finding the source of the information and if there were any truth to it.
It seems that one of the “short sale experts” in his office (she has done 5 – and this was her first BofA short sale) recently had the lender require a seller contribution of 10% of the deficiency (as a promissory note it turns out).
The reason as it turned out? Not policy – but because the seller had over $100,000 in his checking account!
I’m not sure what is worse. Inexperience passing on misinformation as truisms. Or inexperience taking this misinformation as gospel.
Like I said. LALAs.
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