Is anyone else experiencing this with Countrywide. I had 5 files crash on me today due to a difference in opinion of value. 3 of them the BPO’s were done in May. Hmmmm I have on with an auction on Tuesday and they won’t extend it unless we get a 40k higher offer in. I’m getting frustrated with CW in that every files ends up like this. Any suggestions?
Thats exactly what i was complaining about… I think these BPO’s by these realtors they hire are highly inflated based on the condition of the house…
My situation was with CW as well…
That’s too funny Karim - I see your point now since I have 5 in a row in one day. I’m tired of fighting with them. My biggest problem is they mess around for so long and then the auction is too close for them to extend it. I don’t have this problem with other lenders.
BTW Karim, two are in Maricopa (city) they want 50k more than what’s the house is worth. They just canceled one file without a word. Now I have to start all over. The other they are reconsidering because I had a appraisal. It does make a difference when you submit BPOs with the packets - but I just don’t have time or wiiling to spend all the cash for all the BPO’s I need. I may need to reconsider that or just reconsider working with Countrywide again. Also, I am going to escalate the files by putting in my fax something to the effect that if they foreclose on the house and it sells for less as an REO - our lawyers will pursue a lawsuit against them. (anyone else doing this) I’m wondering how effective that would be. I’m tired of every single one that forecloses sells for less as an REO. That’s just wrong.
Almost always the value that Countrywide uses to determine a property value is the appraisal completed. Yes, Drive By BPO’s are used when a loan is in default & Interiors if the loss is over a certain amount, the specific investor requires, or if property appraises a specific amount. BPO’s are more used to validate the appraisal.
I tell agents right up front to provide Comps, a CMA, BPO, Estimates to Repair, or their own appraisal up front so we can dispute property values if need be. CW has gotten much better recently about not just requiring an appraisal to dispute against their own, they are allowing the CMA’s & are looking at the comps as much as possible. If you’re an Investor working the deals get a agent that is willing to do the comps, CMA, or BPO for you, if nothing else get someone with access to the MLS to pull info
Just because a buyer wants to purchase a property at fair market value doesn’t mean the Investor/Servicer is required to take it. There are tons of other factors (is the borrowers hardship legit? Did this seller take a cash out refi? Can they still afford property? Was their fraud involved? Does the deal make sense? How much does it cost to postpone the foreclosure? How are the buyer & seller connected? Will this investor/MI company even allow a short sale? Can the borrower sign a prom note or deficiency agreement? etc…) that can make a short sale not happen. Often, it makes sense to take a short sale on the property- but sometimes, for whatever reason it can’t get done.
Postponing the foreclosure in states like AZ, CA, & NV make sense most of the time because it’s cheap (and/or free, depending on state) but you have to give the negotiator sufficient reason to postpone the foreclosure. All day long they’re hearing, “This house will never sell for that…” or “In this market we’re lucky to even have this offer…”-- Talk is talk- give them documents that they can submit for a value review, something that shows a realistic picture of what the property is worth. They are not licensed appraisers or agents working in the market place. They cannot price what a house is worth- they have to be able to take evidence & say, “hey- these are the reasons why we think this house might not be worth $225,000 but maybe $175,000. Can you review the attached & see if we can get a more accurate picture of what this house is really worth?”
9 times out of 10 a house will sell for less in REO, but the bank cannot complete a short sale on every file they receive. There is such a flood of short sales in the market place that even if the banks hired 1000 more people they still couldn’t deal with every short sale request they receive. Sometimes, it just doesn’t work. If I received a threat from an agent/realtor that they’ll sue if property goes for less in REO- I would care less. The bank doesn’t have to sell you anything. The borrower might want to sell you the house, but a short sale is always subject to lender approval.
-Good luck
Thank you strangecondition for the great details. I understand all that you have said - it is just frustrating sometimes, you know. I am not the buyer on these deals so I don’t have the sort of interest an investor does. I work for the agents. We include CMA’s and/or sometimes an interior BPO on our deals.
I guess the threat of sueing may not be appropriate, I’m sure they don’t care - but that’s how a lot of my clients fee. There going to have a foreclosure for xxxx reason. We’re pretty good about taking real hardships - such as medical, divorce or job loss. Investment properties I tend to stay away from because they don’t seem to get approved so easily. In any case, where does the fight end.
CW Short Sale scenario #1 - Home worth 155k, offer at 135k (had 5k repair allowance as well) lender wants 170k - missing appliances, needs carpet, paint (pink, purple and green walls) nothing real serious but the home was built in the 70’s so the condition isn’t so great and new homes are selling for less than that. Auction is Tuesday so I have countered 140k reducing fees and they will net 15k more. I will include comps and hope we can work something out.
CW Short Sale scenario #2 - Home work 110k offer at 110k - missing appliances is about all - huge inventory of reo’s and short sales in the area due to the location - newer homes, bad loans, about 40-50 miles from the city. Lender did BPO in May - says they want 150k offer - at this point the homes are selling for under 100k. I even sent in comps which was back in June when we submitted the file - and they were around 125k then. They decided to cancel the file. Told me to check my comps again because they want 150k. Hardship was, these people were burglarized twice in this house - lost around 35k in stuff each time. They also received salary reductions, both husband and wife, in their jobs.
There’s no way they will get that. Do we show the current comps and fight or forget it?
Most of the time when I fight with comps, I get an approval but just about never with CW. We’re just all exhausted with doing these short sales, seeing homeowners foreclose and continue with lose lose situations. :banghead I may just need to forget CW deals. There just my biggest complaint. I don’t have this problem with other lenders.
How does anyone feel about these large negotiation companies that claim they speak with the investors themselves and get more deals closed and faster. To me it doesn’t make any difference, the process is all the same. (I think). They want a 5k fee to join them and they train you on everything. You use their lawyers, forms blah blah etc. I’m not going to use any such thing but one of my partners is considering it. ???
I guess the threat of sueing may not be appropriate,
My take is if you do that you show your emotions, which is never good in a negotiation. Tell them that you are going to sue only if you are really going to sue…
CW Short Sale scenario #2 - Home work 110k offer at 110k - missing appliances is about all - huge inventory of reo's and short sales in the area due to the location - newer homes, bad loans, about 40-50 miles from the city. Lender did BPO in May - says they want 150k offer - at this point the homes are selling for under 100k.
If similar properties are selling for under $100k why are you offering $110k? Two thoughts:
1 - you need to present consistent offers - if you are offering $110k and also showing comps for $100k, the bank may not feel confident in your comps… Just a thought. One thing that anyone receiving comps will ask - are they submitting all the comps or only the ones that will make their offer look good?
2 - why not buy one of the other properties that are selling for $100k?
Have a great evening!
There are no grounds for a lawsuit. The bank has no obligation to accept any offers, even offers above market price.
Additionally, if you threaten to sue, you will probably just guarantee that your offer gets flagged to go to the legal department, at which time they will conclude that you have no case, and also recommend that your offer be rejected and your name put on a “never accept any offers from this guy” list.
I understand that it’s frustrating . . . just a bit of advice to save you more hassle.
Good luck with getting them to agree to something . . . persistence might pay off! 
Tina