Phoenix Short Sale negotiations are always so much....fun!
Well...perhaps the word should be invigorating.
For instance, let's take today's "challenge".
Rural property.
Listed in August 2009.
On it's 3rd Buyer.
Vacant.
1st (B of A) will pay $3K to the 2nd (Chase HELOC).
Chase insists on $10K (balance is $73K) - having previously agreed to $3K. Why the increase? Because the 2nd has been charged off.
Chase won't budge - or so it appears.
Let's get them together.
Email to Chase negotiator, copy to Jamie Dimon (Chase CEO) and Matt Vernon (B of A), highlighting the impasse and asking them to suggest options.
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Someone from Matt Vernon's office calls and advises that "the 1st will pay up to $8K to the 2nd".
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Back to Chase. Will you take $8K?
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Fast forward.
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Chase agrees to take $8K.
All is good!
Or is it?
Not so fast......
HUD submitted to B of A for approval.
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REJECT! 1st will not allow $8K to the 2nd!
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HUHHHHH! We have it in writing that they would!
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Request from B of A middle management in Texas "Please call me."
I do.
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"We apologize. While the investor guidelines permit UP TO $8K - for this specific loan the max is lower."
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How much lower?
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I'm sorry - I can't tell you that...
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OK. What do we do?
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Resubmit to the EQUATOR negotiator and request more to the 2nd.
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OK.
Mr. Negotiator. Please increase amount to the 2nd to $8K.
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Sorry - Can only increase to $6,140.
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OK.
Here is the revised HUD showing the increased amount to the 2nd, and contributions from the Buyer and Listing Agent to close the gap between $6,140 from B of A and the $8K to Chase.
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RRRRRRRRRRREJECT!
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HUHHHHH! What now?
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Net to B of A is less than approved.
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Yes - it's reduced by the additional $3,140 to the 2nd.
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No - we need the same net as before (even though we have agreed to pay an additional $3,140 to the 2nd).
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HUHHHHH! Must be new math - or is that fuzzy math?!
Email from me to the negotiator
Subject: *** URGENT *** Bank of America - Message Alert: HUD rejected.
net proceeds]
From: Tony Marriott
Date: Tue, July 20, 2010 5:15 pm
To: B of A Negotiator
Cc: Title & Escrow
statement
From: XXXXXXXXX@BANKOFAMERICA.COM
Date: Tue, July 13, 2010 6:12 pm
To: XXXXX@HAVENEXPRESS.COM
Cc: XXXXX@nat.com
Message Inserted (07/13/2010 06:12 PM) On:
XXXXXXX, BUCKEYE AZ.
Message Inserted (07/13/2010 06:12 PM) On:
XXXXXXX, BUCKEYE AZ 85326.
The maximum that we will allow the 2nd lien will be 6,140.00. Please upload a new settlement statement for review.
Associate Broker, REALTOR
Director - PAR - 2008-2009
Subject: [FWD: RE: *** URGENT *** Bank of America - Message Alert: HUD
rejected. net proceeds]]
From: Tony Marriott
Date: Fri, July 23, 2010 6:09 am
To: Matt Vernon
Cc: B of A Negotiator, Title & Escrow
Associate Broker, REALTOR
Director - PAR - 2008-2009
The key difference in Short Sales is the ability of the Listing Broker to have the experience to know when and how to escalate, and what the key considerations for the investor would be to help them understand why it's in their best interest to approve the Short Sale.
It's in your best interest when choosing which Listing Broker to handle your Short Sale to thoroughly discuss their personal, hands on experience with negotiations and turning "rejects" into approvals.
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