Foreclosure in Boston>Question Details

Dukediver, Home Buyer in Boston, MA

I am making an offer to buy a short sale property in california. I live in Boston and will be relocating due to work. The home is a BofA

Asked by Dukediver, Boston, MA Wed Feb 10, 2010

pre-approved short sale. I was told that BofA already approved a previous offer and during the process, the buyer's financing fell through.

We made a good offer (above list), have strong financing, have 748 credit scores, good income, previous mortgages with BofA and offered a 30 day close.

One thing that we did that we question is that we bid higher and asked for cash back for closing since we wanted to make sure we had enough cash for the move as well as fixing issues with the house as the sellers are excluding fans, lights, frig, etc.

Question:
1. What do you think of our offer?
2. Do you think the cash back thing is an issue?
3. Any other suggestions?
4. What does BofA look for when looking at multiple offers? Just price?

THANKS!

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Answers

7
Tim Cahill’s answer
I wouldn't be surprised if you still haven't heard back from BofA. They are simply the most horrendous company to work with regarding short-sales, foreclosures, etc. In fact, I warn all my buyers who are looking at short sale that if BofA is the lender, we might as well forget it and move on because they are simply inept and they take months (sometimes almost a year now), to even start reviewing the short-sale package.

Best of luck!

-Tim
0 votes Thank Flag Link Fri Jun 4, 2010
With respect to pursuing a short sale, patience may be the order of the day. Offering a 30 day close may be good for a traditional sale, however short sale negotiators are rarely moved by this. If the short sale was previously approved, ask for a copy of the approval. The date of the approval letter is important as these things will have an expiration date. Also, the bank will have to approve the short sale of the new buyer (yourself). With respect to the other questions you posed:

1. The offer sounds good if it is within the range of the original short sale approval
2. Cash back does not have to be an issue particularly if the bank is able to net what they approved in the first place.
3. Patience
4. With respect to your offer, get the seller to commit by signing your offer subject to their lender approval. Allowing your offer to be pooled with a bunch of other offers is not a good idea. You may wait for an extended period of time and in the end lose out on the property altogether.
0 votes Thank Flag Link Sat Feb 13, 2010
The cash back will be the tough part. You can probably get back 5,000 max but it can only be credited to closing costs and escrows. Check with your lender and the short sale negotiator ( hopefully you have one). BOA and all other bank just look at price and the net numbers they will receive at clsoing
Web Reference: http://www.mdmrealtyinc.com
0 votes Thank Flag Link Thu Feb 11, 2010
I am an agent and also recently purchased a home through the short sale process. Its always better when short sales are pre approved, but do not be surprised if you still have to wait for a little while. You need to find out if there is more than one lender. If there is only one then your waiting time will be less. In my opinion with short sales, if they are approved offer what they are approved for, No more or no less. That way its less hassle for you, the agent and the bank. It took me over a year before my short sale was approved and I can understand your frustration. If you have any other questions please feel free to call me. My number is listed in my profile.
0 votes Thank Flag Link Wed Feb 10, 2010
All the previous agents had great answers and suggestions. All I can say is that from my experience, being the agent representing the homeowner with BAC on a short sale, keep looking while your offer is being considered. BAC is not a very organized company, would hate for you to get moved and still not have a home. Best of luck in your search and move...
0 votes Thank Flag Link Wed Feb 10, 2010
You could say that you got the offer in at 20% discount, but if you state you are dealing with BofA I say "DON'T HOLD YOUR BREATH!" Sorry, but I am on month 8 with a short sale process with them and we had 4 offers come and go. We also have an attorney with staff working full time on trying to get an answer. Did a different company in 2 weeks, so it is something with BofA.

I don't feel the cash back is an issue, the bank just looks at the net number. You sound like a really strong buyer and they should jump at it, but keep those options open is my major recommendation.
Web Reference: http://www.MAhome.com
0 votes Thank Flag Link Wed Feb 10, 2010
Dukediver
1, First there is no why for us to know without knowing the address and the price you offered to see if it will have issues with appraiser.
2, I personally think if it can appraise, it should not be an issue. I have not had a problem asking for money towards closing cost most of the time
3, Brace yourself for a whole lota patience because BofA has yet to show they can move fast on any of these transactions. They seem to be notiously slow and that is all I can say about them and still be nice,
4, Are there mulitiple offers in front of the bank? Most agents submit only 1, so no worries there unless listing agent submitted more than one.

Good Luck!!!
0 votes Thank Flag Link Wed Feb 10, 2010
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