Another reason why short sales take so long. .
The "servicers" don't want to lose their monthly fees from the owners of the loan and it behooves them to string along short sales for as long as they can.
The investor have no idea that their investment have been dragged by these servicers for months and in some case for over a year.. .
meanwhile they have experienced the losses on the following
- Paying more for property taxes
- Property loss of value
- Damage and theft
The actual short sale drama below is just one of tens of thousands playing out right now. We can help lenders mitigate their losses. Lenders: Please help us help you.
Case in point:
Bank of America has stopped considering back taxes as an allowable closing cost.
We’ve been working on a fixer upper short sale for more than a year.
- Must have had 40+ agents walk through.
- Had about 10 different buyers submit offers ranging in the $80,000 to $115,000 range.
- Had it under contract 4 different times.
- BOA counter-offered the first 3 buyers into oblivion. Current buyer hanging on by a thread.
- Met 6 BPO agents or full blown appraisers at the house. Not a typo! SIX different appraisers were sent.
- One BPO agent sent in a value of $150,000, which is $35,000 higher than the highest offer we got, or 30% to 45% higher than 10 different buyers were willing to pay.
During the delays, the $8,000 tax credit expired which caused values to decline again.
Now that BOA dragged their feet for a year and blew off good buyers, there are $2,000 of unpaid property taxes.
BOA is unwilling to pay the back taxes. “Not an allowable closing cost” they say. The seller doesn’t have the money and the buyer is outraged and ready to walk.
Stepping over the dollars to get to the dimes
If BOA would have taken valid short sale offers we generated a year ago, there wouldn’t be any delinquent taxes, they wouldn’t have had to pay 6 different appraisers to give them unrealistically high opinions of value, and the list of extra costs to BOA goes on and on. BOA or its investor lost at least $15,000 in foreclosure costs, appraisal fees, lost payments and many other incidentals.
Now that they’re running off the buyer with the $2,000 back property taxes, we’ll be back to square one. Again.
By the time we line up a new buyer who would pay the seller’s property taxes, or if it ultimately goes to auction, BOA will lose more than the $2,000 they’re demanding now.
Is BOA losing this money or is it being lost by an investor who is relying on BOA to service their loan?
Note to anyone from BOA or its investors who may be reading this blog: This case study is not an exception. Thousands of Realtors nationwide are trying to help you mitigate your losses. Please help us help you.
Dave Halpern, Real Estate Broker, Louisville Short Sale Expert Realtors