I am STUMBLING through my first short sale and would love some advice.
Here’s the info: I got a H/O in pre-foreclosure. Trying to do a SS with Wells Fargo. Original mtg $249, they owe $233k. Comps are all over the place…ranging from $155 to $200k. BPO came back at $165k. Submitted an offer with the negotiator at $145k which they VERBALLY accepted then they sent of for formal approval. Found a buyer after the initial offer to the lender had been accepted for $174k. Called the negotiator for two weeks straight and finally got information from the customer svc rep that the offer was declined. Evidently, negotiators are no longer accepting phone calls…you have to go to the general rep and they have to read the negotiators notes to get info. The notes stated that the offer is too low and they want the BPO. We are into month 3 of this process. We have to start the entire process over which, according to the rep, will take another three months. My questions are:
Should I go back in and offer $165k (the BPO) or a lower amount?
What can I do, if anything, to guarantee that if it takes another 3 months, my buyer will still be on the hook?
My title agent told me that I would have to wait at least 3 weeks after I close the property with the lender to turn around and sell it to the buyer. I guess because of seasoning issues. If not, I will have to give a disclosure letter to the lender that states I plan to sell the house for higher than what I paid for it. This seems ridiculous. Anyone else heard this before?
BPO may no longer be accurate. Get a realtor to run you current comps. If it shows lower than 165K, then lower your offer as well and resubmit to lender (both new offer and new BPO). Send offer and get responses in writing. Use fax or email or registered letter - don’t rely on verbals.
Thanks for the ADVICE. But I did start lower. The initial offer was $102k grasshopper but they wouldn’t even consider the file at the price. We went back and forth and settled verbally on $145k. File went to an investor where it was denied. And my buyer is financing. Any other valuable non-condensing advice
It would seem that your whole plan then was to buy the house at a discount (145) and sell it to your buyer for full price (174) making yourself 29K minus costs in the process.
So if you go back and offer 165, how much are you going to make?
Does the property need repairs?
Walk away. If you use the old equation Top offer = (ARV*0.7)-repairs then with no repairs and considering the BPO as ARV, the best offer you could make would be around 120K (that was a typo in my first condensate).