Its down to the wire. Property forecloses next Wednesday on the 31st. I am currently working on a short sale on the loan.
She owes 175 k which includes arrears, attorney fees etc. Home is worth 160. Unfortunately BPO came in at 160 two days ago. I am asking for another BPO to take in consideration all of the repairs and current market conditions that I noted in original ss package.
Meanwhile, I am going to hold an open house this weekend to get an idea of what buyers are willing to pay, and hopefully line up a strong buyer to get the home into contract which I could submit to the lender on Monday.
Dont know if there is anything else I can do now about the high BPO but I wonder if there is anything else or different I should be doing. Let me know what you think. Thank you, I know this was a bit long winded.
Gregg- Tucson
long winded questions get long winded answers so sorry in advance for the post…LOL
If you are currently working the SS on the Deal call the bank and get them to hold off on the sale date this is pretty easy to get done. Let them know you are having the open house this weekend and will bring them the Highest offer received on the property.
Next shoe them there profit by taking the property through Foreclosure here is there breakdown. Lets say they sell it for appraised value (UNLIKELY)
Appraised at $160,000.00
Realtor 6.4% $10,240.00
Attorney 8% $12,800.00
Holding 7month avg. $11,200.00
Closing costs $4,800.00
Repairs to Resell $8,500.00 (Made up number you can change Bank will not do repairs so this is going to be deducted off of price)
They will net $112,460.00 if they sell it for appraised value…
And my offer is $113,000.00 so why did you want to show a higher loss in a year you will net the same right now.
Hope this helps.
You are the man! I have never broken it down like that for a bank that way. I always stuck to repairs, market, etc. I like that logic and I think its a great argument. I will see what the bank says tomorrow and let you know what happens.
Thanks,
Gregg
Just an update
So I called the negotiater this morning. She was having no parts of delaying the foreclosure. I told her that the BPO of 160 was high because of x, y, and z, but she did not really soften.
I told her that I would bring her my best offer on Tuesday. She said well it better be higher than 80(my first offer) or 90k.
At this point I am just going to hope for a strong buyer this weekend to get the deal done. Thanks all.
Gregg
What bank is this with? Ask for the V.P. or at least a manager Remember you are a business pro. We don’t talk to 13.00 an hour people… Let me know what bank please I will tell you who to call.
EMC Mortgage in Lewisville, TX is the bank that am working with. The negotiater is an older lady who seems like shes been working there for a while. She seemed to have that ‘Ive heard it all before’ attitude.
Thanks- Gregg
I would have no expectation of having the auction postponed any sooner than the day of. Don’t bother trying.
that has been my experience as well. Is there any reason that they wait till the last minute?
It’s a negotiation tactic. When you call you project desperation. Screw 'em. Fax them your offer, confirm that they have it, and ignore them.
I get them postponed a month before… There are some that we even get them to agree the day before. As far as fax them your best offer and ignore it! Why do that? You need to stay on them. The people that work for 12 bucks an hour want you to submit and Ignore them the problem is that simply does not work. You really need to negotiate the short.