Ok, if you have experienced the following or know of someone who has please raise your hand. I was at a closing this morning and the buyers agent was sharing a story with us concerning a transaction she is working on with a FSBO property owned by Countrywide Mortgage. They placed an offer and received a counter offer from Countrywide which was lower than the original offer price; in addition, Countrywide would pay up to $3,000 in closing cost on behalf of the buyer. So when was the last time you presented a purchase contract and had the seller counter the offer with a lower price and volunteer to pay your buyers closing cost? So whats the catch, not a suprise they had to complete financing of the purchase through Countrywide.
After thinking about this for a while, I like the creativity on the part of Countrywide's REO department. I hear complaints weekly from my Realtor partners who often wait 6-8 weeks for a response to their offers on REO properties. As the inventory of foreclosed properties continues to grow, this is the first new idea that I have heard as a way for a lender/seller to work pro-actively with the Realtor community.
I am curious if this is a rare occurrence or if others have encountered creative solutions? I also want to ask if anyone feels that this is bad for the buyer or from an appraisal perspective the marketplace? In Colorado, Realtors are required to note seller concessions in the multi-list and appraisers are required to adjust the final sales price with the concessions when establishing value by comparison.
Many of us have and will continue to work on transactions involving REOs and short sales; I am interested in hearing more about the experiences of Realtors and lenders from around the country. Please share your thoughts.
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