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Oops They Did it Again

By
Real Estate Agent with Charles Rutenberg Realty BK645994

You guessed it Bank of America has managed to surprise me again with their ineptness at handling short sales. The are the bank for a seller that has had two buyers walk because the approval took too long. The second buyer's offer of $153,000 was approved just a few weeks ago, but not in time to hold the buyer to the contract. Luckily, I am working with a terrific couple who made an offer immediately at the "approved" price. We went to contract and began waiting - again. We had just spent five months waiting on another short sale that went awry when the seller's bank wanted a ton of cash from the sellers and still reserved the right to pursue the deficiency at a later time. The sellers were unable to negotiate a better deal, so they refused the banks approval offer.

We went back to the drawing board, then this home came back on the market. The day it came back we had our full price offer at the "approved" price submitted. Six weeks later, Bank of America is now counter offering $17,000 higher than the price they approved. Apparently, home values in Orlando have skyrocketed more than 11% in the last 45 days. There are currently 28 homes that meet the buyer's search criteria in the general area. I will admit that most are priced above our current offer price. They also are not selling, and many are larger four bedroom homes. The most recent sale in the neighborhood of nearly an identical size three bedroom home closed for $145,000, so $153,000 seems pretty fair for the condition, floorplan and the lot this home sits on. But $170,000, come on Bank of America. Your new BPO suggests the value has suddenly jumped 11% to $170,000 when the only recent sale closed for $145,000.

Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Of course, you know that the banks absolutely do not care. 

Sep 19, 2011 08:32 AM
Mike Carlier
Lakeville, MN
More opinions than you want to hear about.

I'm surprised that you're surprised.  They may be too big to fail, but they're certainly trying to make up for it with extra effort.

Sep 19, 2011 08:36 AM
Elizabeth Birmingham
EB Realty - Grand Junction, CO

Just think what will happen when the 30,000 person personnel cut happens. We think we have it bad now. Just wait. 

Sep 19, 2011 08:38 AM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Think it is bad now?  Wait until they reduce their employee count by 30000.

Sep 19, 2011 08:48 AM
David Welch
Charles Rutenberg Realty - Orlando, FL
Real Estate Optimist - #OrlandoRealEstate

Lenn, I actually wrote a blog back in May of this year titled "The Banks Don't Care"

Mike, I really was not that surprised. I am the Real Estate Optimist though, so I am always hopeful.

Elizabeth and Richard, hopefully they will get rid of the 30,000 least competent staff - oh wait, that is the short sale department.

Sep 19, 2011 09:27 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

David.  There are many reasons, but for us, the a couple hundred thousand real estate agents (AR members) can't be wrong.

Sep 19, 2011 10:29 AM
Kay Van Kampen
RE/MAX Broker, RE/MAX - Springfield, MO
Realtor®, Springfield Mo Real Estate

David, I've found one person at Bank of America that, when called, goes out of his way to make sure I have a solution to my BofA problem within 24 hours.  Although he couldn't get a foreclosure postponed, he tried for over a week to make it happen.

Sep 19, 2011 03:09 PM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Don't get me started on Bank of America.  They are the worst.  But unfortunately they are the biggest and have the most properties in the pipeline right now.

Sep 21, 2011 01:26 AM