Tuesday, November 23, 2010

Story of a Bank of America - Destin Florida Short Sale Approval


Sometimes you only hear the end result of a short sale being approved. Here is the background story of a Bank of America - Destin Florida short sale approval:

Sept 2 - I list a Destin short sale home for $237,900 - difficult to price, with some pending comparable sales higher, and some Destin foreclosures lower. I started on the high end of the scale, with the intent to reduce in thirty days if we didn't get a contract. After that point, I would reduce the price weekly, or more often, depending on my daily price analysis.

Sept 12 - We get a low offer - for $210,000. Since some comps were far higher, I advised seller not to take this offer, but to counter. The philosophy is to send a contract to Bank of America that will likely be approved. Even though you might think $210,000 is not that far off, I know my market place. If the buyers will not come up to a higher price now, why waste time taking the home off the market to see what Bank of America says later? Let's find out. Seller counters at $230,000.

Sept 20 - Buyer backs away, but finally returns. Twenty days after listing home is under contract for $225,000, with interest of buyer evident (key in short sale approval process).

Sept 22 - File is uploaded into Bank of America Equator system.

Sept 27 - Bank of America says seller signature on authorization does not match his signature on original loan. We send in letter of explanation from seller that his signature slant changes. Apparently, this explanation is accepted.

October - Appraisal ordered, more financial information from seller requested. Proof home has been on the market for sixty days is requested. It was only twenty days! I tell negotiator, "We got a lucky buyer shortly after listing". Apparently, this explanation is accepted.

November 2 - Bank of America asks seller for $23,000 - or 10% of the deficiency balance that won't be covered by the short sale, to be paid as cash from seller at closing. Negotiator says a lesser amount would work, but only 10% would waive any future deficiency

November 3 - Seller agrees to pay $3000.

November - Bank of America asks for new bank statements, new HUD, addendum to contract with closing date change. Negotiator says seller cash contribution is low, and file might be rejected by investor.

November 17 - Short sale approved.

If you are considering short sale as an alternative to foreclosure, contact an experienced Destin Florida short sale agent.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

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