After 9 months of hard work my short sale bombed yesterday.
The subject property is a wood frame 3 bed condo which my seller purchased for 322K in 2005
The lender was Countrywide and the borrower should never have been qualified for the loan to begin with. This based on income and value of the property. The seller had mortgage insurance on his property, a complicating factor.
These properties are now selling between 55 and 63K, a loss of 260K excluding marketing costs.
I started with the short sale process in March 2009 , All paperwork was complete and submitted twice since Bank of America lost the paperwork halfway through the process. I had two contracts on this home, the first buyer walked and we ended up with a contract for 59K. During the last 9 months I have dealt with three negotiators . two BPO's , and many many emails and phone calls.
In the end it boiled down to the offer from Bank of America offering to approve the short sale if my seller would contribute $8000 at closing ,or sign a promissory note with installments of 100 dollars for 190 months (=19K equal to 8K plus 13% interest).
I discussed this with my client and emailed the negotiator that my client was unable to do that because he is in financial dire straits.While normally Bank of America takes it's time , this time I had a response within 10 minutes by email. The bank closed the file and foreclosure would be the next step.
Somewhere I have read that Bank of America does not approve short sales if the seller does not contribute in one way or another. Does anybody else have this experience ? Or is this problem specific to properties where the seller has MI ?
Since most sellers have financial issues and are unable to contribute, it would mean that chances are slim that a Bank of America short sale is going to work out for anybody involved.
Please let me know your experience with BoA and promissory notes.
Hans Welbergen, Realtor
RE/MAX Properties SW
6985 Wallace Rd
Orlando Fl 32819
407 352 5800 (office)
407 701 6814 (cell)
407 352 9277 (fax)
Residential real estate sales - Residential property rentals