Bank of America; Short Sale Killer!

I've been listing, working and closing my Short Sales here in the Palm Springs Valley, Calif., for about 5 years now.  Way back in 2007 when Short Sales were just beginning to rear their ugly heads, it was not uncommon to work a listing for months and months, just to have it crash and burn.  Not too hard to understand because there were no guidelines in place.  Realtors, Servicers and Investors could not work together because nobody on either side knew the rules.  But that was then..

I am now, 5 years and many closed deals later, re-living the nightmare of the long Short Sale. In fact, this particular deal is closing in on a year..I listed it 4/25/2011. Well, what's the problem Kim??  Can't you get a qualified Buyer?  Actually, I can.  I am now on Buyer #4.  The first two were cash buyers and Buyer #3 and Buyer #4 are financed buyers.  First two at $850,000, last two at $865,000.  

For the property history on this one, check this out..

Yesterday I was slightly encouraged because the Bank of America media contact person called me.  She had read my blog and now listened to my story.  "I can't guarantee you anything, but I am going to escalate this file.  I'll get back to you."  Nothing yet.

Then the negotiator calls..

"Our new appraisal supports $1,050,000 so let's figure out how we can make this work for my Investors."

"Camele," I reply as calmly as possible, "You need to fire that appraiser.  I have sent you the approval letter from your Investors, (who are one and the same by the way).  It was for Buyer #3.  Purchse price of $865,000 with a close date of 3/16/2012.  That buyer walked because their Lender would not appraise the home over $825,000 and B of A would not budge.  How has it increased almost $200,000 since February of 2012?"

Silence.

"Well, we need to reduce these negative numbers", she continues as if she has not heard me at all.  "How about reducing your commission?"

"Hmmm..let's see Camele. I have brought you not 1, not 2, but four qualified Buyers so I would say I've done my job exceptionally well!  My commission is off the table."

"How about getting your Buyers to pay the taxes?  That would..."

"Camele.  Listen to me here once again." This Lender will NOT appraise this home a dime over $865,000.  I told you that in my Equator e-mails..I checked before submitting the offer.  Your new appraiser is on crack..and I don't believe he/she even went into the home!  Nobody ever contacted me or the home owner!"

We didn't get anywhere.  

A couple of observations.  The "new appraisal number" of $1,050,000 just happens to match my original List Price in April of 2011.  That number was one I plucked out of the air based on what the borrower owed..approx. $1,085,000.  Coincidence?

Secondly..the Banksters just struck a deal with the Gov. to the tune of a miserly $26 billion.  They are to reduce principles on loans.  The devil is in the details, but it is being reported that the only notes they have to offer reductions on are portfolio loans...hmmm again, since this is one of those.  Wouldn't it be strange if we find out down the road that the Banksters collect taxpayer money when the homeowner is offered a reduction and doesn't accept it?  Either they've already abandoned the home, or they simply cannot pay the reduced amount?  Another coincidence?  

Something fishy is going on here, so if you see this home re-listed at $1,050,000.  Just wait.  It will be reduced.  Just imagine if the brains at Bank of America had accepted $850,000 6 months ago..cash!  Deal would be done, short sale closed, neighborhood inventory reduced..but that would have been a good business move.  There in lies the problem..