Home Buying in North Bergen>Question Details

Shalini Bhat…, Home Buyer in North Bergen, NJ

Short Sale / NJ. Please help!!!!!!!!!

Asked by Shalini Bhatia, North Bergen, NJ Sun Jun 7, 2009

Three weeks back i found a Short Sale multi family home in North Bergen / NJ. It was listed for $450k. Orignally it was sold for $657k two years back. It was listed on craigslist.org by seller & his agent. I contacted the seller & his agent & went to see the home, I liked it & decided to go ahead with offer. I asked the agent is the price approved by the bank and which bank is it. He said its Bank of America & price is not set but assured me that around $410k the bank will approve. I have very good credit around 800 FICO score & putting 20% down towards the purchase. I signed the contract & the agent has presented it to the bank along with all paperwork. I have made the offer for $405k which i was advised by the agent. My real question is can someone with experience in this kind of deal help me what are my chances to get this home also there are no other offer so far. Has someone dealt with B.O.A before & do they negotiate & how are my chances to buy this home. Please advice.Thanks.

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Hello Shalini,

I am a Mortgae Banker from Elizabeth and have worked many short sales with my wife. If your comprables are accurate and your offer makes sense they will accept. The other issue is how far or stage the short sale is at. You need to be pre-approved, show proof of funds and transaction can move much faster.

Short sales must be called in at least two times a week. If the Short Sale person is laid back and not aggressive be ready to be waiting a while my friend. My best approach is to always call the Bank myself get a hold of the assest manager and deal with it that way.

When the BPO agent comes to the property is when either I try to meet them there or the Realtor must write a report to the bank with the comps to list if there are any defects to the property. This way the price can be reduced a bit more. A demographics report must be made as well to descirbe postives and negatives of where the property resides.

All your paper work must be in order and up to date. If 60 days goes by and you are not moving along with the short the bank will request updated paperwork. Keep on top of your Realotr many are just not qualified and experienced enough when it comes to the Short Sale Proceedings.

Again Bank will move much faster when you are in placed with financing. If you have any further questions send me an email. erodriguez@precisionfundingllc.com or erod1313@comcast.net
0 votes Thank Flag Link Fri Jan 29, 2010
I hate short sales. :) LOL. Main thing just be patient. The 3-4 weeks seems like a long time to hear if the offer has been accepted but it's possible. Ask your agent if he is already in contact with the negotiator from the bank. Some banks need 30 days before an agent can talk to one so it's possible that he hasn't. Once he's talking to the negotiator, and the seller's short sale packet is up to date, the process should go smoother. I say should, because I hate short sales and anything can happen.
0 votes Thank Flag Link Fri Jun 26, 2009
My agent called me today and informed that the BPO was done yesterday. He spoke to the BPO over the phone and help him with the comparables. Also at this point there is a new offer which he sounded lower then mine{ but did not gave me the number}. He told we should hear from the bank in the next 3 to 4 weeks. Any advice you guys can offer at this point.
0 votes Thank Flag Link Thu Jun 25, 2009
Hi Shalini,

You're doing great. Stop looking so much for reassurance that you are doing the right thing. Our office was part of a conference call on the short sale process held by Bank of America and Wells Fargo yesterday. Both indicated that they were actually turning around packages just a bit faster than their goal of a 45-90 day turnaround time. Hold fast to your current offer. It's easy to keep thinking that a higher offer will speed up the short sale process, but it really doesn't. BOA has become very receptive of short sales as they now realize that this is a viable way to convert assets into cash in the short term at possibly 20% more than they will get as a foreclosure.
Make sure the agent meets the BPO agent or the appraiser to advise them of any condition issues or help them with comparable sales. Your agent must make every effort to assist these other professionals in getting at the true asset value. If they overvalue the home for lack of information, your deal may never happen.
Make sure your financing is ready to go. When the bank approves the short sale amount, the approval is only good for 30 days. Ask your agent if there are any other liens against the property that need to be negotiated.
There's so much that goes into these specialized deals, but a successful end result is a win for all parties involved.

Good luck and keep us informed.

Jacobus "Jack" Vollenberg
RE Appraiser - Vollenberg Appraisers
Asset Manager - ERA Statewide Realty
Cell (973) 590-0142
0 votes Thank Flag Link Fri Jun 19, 2009
It is good the bank is sending out for the BPO. BUT>>> you just showed why there is sometimes a problem with dual agency w/same agent: you already let them know that you can afford MORE. There is a lot an agent who represents BOTH sides can do with this situation, even if they are not supposed to. Also, be wary of anything but true comps from your local mutliple-list or from an appraiser. Some internet sites don't provide a full picture. Also - I am concerned for you because you seem to be getting more info from those of us who are responding than from your own agent. Not to disparage him/her - but personal philosophy is YOUR agent should represent, inform, educate, communicate WITH YOU about everything and you should feel able to go to him/her with every question you have and you should receive a satisfying answer. It sounds if this goes through you will have gotten a good deal and it will have been win-win for all involved.
0 votes Thank Flag Link Tue Jun 9, 2009
Thank you Lukasz and all for helpfull advice. On ZILLOW.COM the zestimate of the property is $459k, the bank was asking $450k and my current offer is $405k. Today i also told my agent i can go higher just in case if Bank counters back.
0 votes Thank Flag Link Tue Jun 9, 2009
That's a good sign. That means the bank is sending someone out to appraise the house and find out what the fair market value is. If your offer is close to what the market says the house is worth, then you shouldn't see too much resistance. Again, I don't know which property this is and where it's located, but based on my experience with home values in North Bergen, you very well could be in the ballpark as 2 family homes tend to hover around the $400K mark. Of course North Bergen is a big town and other things affect value so I can't be completely sure what this home is worth.
0 votes Thank Flag Link Tue Jun 9, 2009
I got a call today from my agent saying the bank is sending out the BPO. And he assured me that our offer looks good and there are still no other offers for bank to play around. Any advice guys.
0 votes Thank Flag Link Tue Jun 9, 2009
Bank of America is a big financial institution, which means they have alot of deals going on so the process might be time consuming. I don't know which property you're referring to but as far as negotiations go, if the bank has a higher number in mind that they must net, then they will either counter or reject your offer. No one but the bank can say for sure what that number is. If the property has been on the market for a long time, your chances are probably better than if it's new and it will be up to your agent to speak with the negotiator and try to get you the best deal. Yes it's a dual agency agreement, meaning the agent and/or his broker are representing both sides, but this is very common in this area. Technically since this is a short sale, the seller doesn't have all that much to do with the actual transaction, so their interests are mainly to just get the house sold as quickly as possible. The agent is very likely not representing the bank, so even though he's in contact with them, his goal is to find the magic number that will get the house sold and get the best price for you. The good thing about being in a dual agency agreement in a short sale situation is that one agent is doing all of the communications so you will be aware of what's going on with the deal when the agent knows.

My main advice to you is have patience and try to hire an attorney that has experience with short sale deals. Getting the offer accepted is only the first step.
0 votes Thank Flag Link Tue Jun 9, 2009
I am presuming you have been notified about Dual Agency. Not sure how it exactly works in NJ, but most of the time, the broker is the same for both sides, but the agents are different bcse one agent can't work both sides - but it depends. Be careful bse you don't want to presume that this agent has your interests primary - usually a seller agent has a primary fiduciary &other duties to the seller.. so read your paperwork & ask questions! Good Luck
0 votes Thank Flag Link Sun Jun 7, 2009
Seller agent is also working as my agent now.
0 votes Thank Flag Link Sun Jun 7, 2009
Hi. Short sales can be very time-consuming. BOA is dealing with MANY all around the country & sometimes it does counter-offer, You mentioned that you spoke w/the seller's agent. Do you have a BUYER's AGENT representing YOU?! Find one immediately who knows about short sales. You need someone representing YOU & YOUR interests in this transaction.
0 votes Thank Flag Link Sun Jun 7, 2009
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