The first lender, Countrywide, insisted on a short sale price of $625K, although the first loan with them is less, at $588K. Countrywide said that because of the missed payments, etc., the monies owed are now around $610K. HUH?
The second lender agreed to a payoff of only $9K. And usually, it's the second lender that gives us grief. Not this time.
And my poor co-Realtor, who has worked on this listing for months is puzzled. She received several offers on this property. All of them were in the $550-575K range. The sellers accepted the highest and best, and they even have someone in back-up.
The realtor provided detailed comps and market analysis to justify the $575K sales price and to challenge the BPO. But the Countrywide loan negotiator won't even present this information to their investors, and wlll not budge from the $625K.
The sellers feel like they have no choice but to let Countrywide foreclose. Or they may file for bankruptcy.
Has anyone run into this problem before? Are other lenders demanding the same thing?
I haven't had that kind of problem with Countrywide but I have enough with to know I never want do attempt another with them or BOA. GOODLUCK!!
David --- I have a short sale listing with BOA -- both loans. That took 4 months to get approval for both. And the first rejected the first offer of $310K, and insisted on $315K although the comps justified the $310K purchase price.
My guess is that they feel that the property is worth 625k and they feel if it goes to auction, someone will pay their credit bid of 610k.
Satar -- the loan negotiator sits at a desk hundreds, maybe even thousands of miles away, and has no concept of the local markets. He/she relies on BPOs done by folks who may not even be familiar with the area, or who do drive by appraisals. So how can they place more value on their own perception of the market over a local realtor who knows the market better than they do?
The market values are whatever the buyers are willing to pay for it....the buyers have spoken. If no one buys it at $625K, it will be foreclosed. Who knows what the next buyer will pay for it, and who know how long it will stay on the market? The bank will continue to incur expenses while owning the property.
Hi Pacita -
"So how can they place more value on their own perception of the market over a local realtor who knows the market better than they do?"
I agree with you. However, keep in mind that they don't see you as someone they trust or can work with. Thier BPO is gold and they might work with you if you provide another nuetral third party appraisal or BPO. By the way, I agree with them. I work for my clients and not for them.