Note to short sale lenders: 1,000’s of Realtors are trying to help you. Please let us help.

Reblogger Fernando Herboso - Broker for Maxus Realty Group
Real Estate Broker/Owner with Maxus Realty Group - Broker 301-246-0001 Broker - Realtor - CEO

 

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

 

 

Original content by Dave Halpern

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.

Respectfully,

Dave Halpern, Real Estate Broker, Louisville Short Sale Expert Realtors

(502) 664-7827

 

 

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Rainmaker
4,432,217
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thanks for the post. I hope short sales lenders will read it . It will improve the market.

Aug 22, 2010 12:38 AM #1
Rainmaker
525,733
Ellen Dittman
Watson Realty Corp. - Middleburg, FL
#1 Stop for NE FLA-JAX/OP 904.535.1199 (TEXT OK) r

I'd say fax it to every known bofa fax #. Email to every known bofa email address. I can soooo relate to the dilema. They just opened a short sale service center here in Jacksonville. Was told on Friday that they forgot to cancel the courthouse sale (after 2 1/2 yrs) and several contracts. If they'd have not asked the seller months ago to sign a 15000 promissary note. (seller has been unemplyed for 2 years). Or if they'd take the 180k we had for them 2 yrs ago. Oh, dont' get me started!  

Aug 22, 2010 12:47 AM #2
Rainmaker
525,554
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Fernando - thanks for the reblog. If Realtors pooled all their stories about inefficiencies in the market it would make quite a story.

Aug 22, 2010 03:57 AM #3
Rainmaker
249,857
Mike Klijanowicz
Cummings & Co. Realtors - Perry Hall, MD
Associate Broker @ Cummings & Co. Realtors

Good to see that you are still around and things are going well for you.  It's been a while since I have been here lately...

Aug 22, 2010 09:23 AM #4
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301-246-0001 Serving Maryland, DC and Northern VA
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