Home Buying in 19111>Question Details

Rich Potter, Home Buyer in Philadelphia, PA

I placed a bid on a house for 96,000. This was a short sale that was listed for 109,000. Bank of America countered with 100,000. I accepted.

Asked by Rich Potter, Philadelphia, PA Wed Jul 4, 2012

Now, a week after that, the negotiator told me that B of A will not pay the negotiators fee. I want the property, so I agreed to pay it, but as a broker fee on the settlement sheet. B of A stated that they will not allow that. I gave in and said I would pay the extra 3 grand, on top of the settlement charges at settlement. A week has passed by and they are now asking me for proof of funding. Keep in mind that I have proved at least 4 pre-approvals, as the have expired and I needed updated pre-pprovals from my own lender.My questions are: Are they allowed to make the decision of how the negotiators fee, which I am paying for, is paid? Are they allowed to insist I send them proof of funding? As far as I am concerned, when they countered my offer, and I accepted, we had an agreement.

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Answers

6
Did you supply you DOB s number and sign the BOA addendums yet? Just wait there is more to come.
Yes they do need proof of funds to make ure you can close. I am surorised the liting agent did not require that before submission.
0 votes Thank Flag Link Fri Jul 6, 2012
Be aware, you have entered the "Wild, Wild, West of Real Estate," short sales, where there exists only an illusion of rules. Your EQ may not align you as the best candidate for a short sale.

Be aware, as a participant in the short sale process, you have elected to play on the team that loses 70% of the time. It is possible, after you have jumped through every hoop, provided every document the 5th time, and packed or repacked your possessions. you can still lose, on the whim of the owner or bank or loss mitigation department. ANYTHING can does and will happen in a short sale. You DON"T have a deal until you have the keys in your hand.

Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
727.420.4042 - http://www.RealEstateMadeEZ.us
0 votes Thank Flag Link Fri Jul 6, 2012
It's their game and we must pretty much play by their ground rules. If you want the home you'll jump through their hoops....if not......
0 votes Thank Flag Link Fri Jul 6, 2012
Hello Rich,

The lender has a process to approve short sales. Part of it is the amount of closing costs that the bank will agree to. The reason that they sometimes seem so rigid is because the same rules have to apply to everyone.If your short sale negotiator tried to put the fee on the sellers side, they were stupid and should have known that it would bite them in the ass. The only safe way for a negotiator to get paid is on the buyers side.
Since you have agreed to pay the fee, then move on. Give them proof of funds so that you can close the deal. It takes you less than a minute. Short sales are just plain cumbersome. I have one lenders rep telling me how to word a line on the settlement sheet and then it is sent back because his boss didn't like the wording!!!!Half of the time it is dumb stuff. The rigidity of the whole process gets frustrating, but once you realize that you have to play ball to get the house....play ball.

Regards,
Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010 & 2012
NMLS ID 143960
0 votes Thank Flag Link Fri Jul 6, 2012
In PA only a broker can receive a commission from a sale. Agents work for a broker and get paid from the share the broker receives. B of A has the right not to be part to a transaction that is possibly against the law and could bring fines. Buy not using an agent or broker licensed in PA the best thing you can do now is pay a lawyer to work this out.
Benny Smith
0 votes Thank Flag Link Thu Jul 5, 2012
Yes. Proof of funds can be required up until settlement when you actually transfer the funds to the Seller. They can make the decision of how the negotiator is paid because it is all a condition of the deal. Remember, they don't have to accept the Seller's offer to shortsale in the first place. They could foreclose.

You are most likely getting a good deal. If you want the house, play ball.
0 votes Thank Flag Link Wed Jul 4, 2012
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