Bank Of America & Short Sale
Hello all,
I was just wondering what kind of success people have had with short sales and Bank Of America. I have done several short sales but this is the first with B of A. Already requested their ss package and I am working with the current owner. What kind of percent of the BPO can I expect them to accept? House in the 320K range. According to my rehabbers estimate needs about 100K in repairs--obviously high estimates. Comments?
Thanks
Marty
Marty--
I did one last month with BOA but it was a VA loan and they wouldn't budge on the VA's reg---still did the short though on the second.
Am working another now and waiing for the appraisal. They claim to only agree on whatever the appraisal comes in at. Maybe it's a bluff. Out of curiosity are you working through David or Bonnie in Loss Mit?
jim
Hey Jim,
Actually the SS package came from Pattie in the foreclosure dept. She sent me the #'s for the loss mit dept. After the SS package gets filled out. I imagine I might be speaking with one of the two people you mentioned after the homeowners get their financials together?
Marty
Marty--
If you speak with Dave Nowak, tell him Jim Novak said, "Hi". You'll probably get a friendly laugh.
Jim
Hey Jim
I will mention that you said hello--I hope it is a friendly laugh and not a quick hang up--LOL. How did your working relationship go with him? How long did negotiations take with the earlier VA loan through BOA? How about the current one? If he is not very flexible maybe I should avoid contact with him? Your thoughts?
Thanks
Marty
Marty--
Dave was a great guy who understands our business. HOwever, his hands were tied due to the VA restrictions. I ended up just paying off the mortgage in full because there was substantial equity in the deal.
Let me know how it goes.
Hi Marty,
I am working a SS with BOA right now and they are overloaded with foreclosures. Initially, they told me that it would take 30 days to review my package once it was received. It initially took about 3 weeks, and now we are finally talking.
The BPO is now completed, but I am having trouble getting them (Bonnie) to return my calls.
How is your SS going with them?
BAMZ
Hey BAMZ,
I don't have all the components of the SS package yet. I just met with the seller last night prompting him to get his financial papers together. As soon as I get that info I will be submitting the package. Please keep me updated as to your progress.
Thanks
Marty
How do you go about requesting packages in my particular area? Will the banks work with you that way?
Hey Brandon,
You just make contact with the lender and ask what they require in order to do a short sale. Each lender will have their own requirements. Some lenders will not even entertain a short sale offer. Just call and ask.
Marty
BAMZ--
I left Bonnie a message yesterday and today and haven't heard from her. I've spoken to her in the past but you have to keep calling. I've had the best luck by immediately dialing her # if her VM picks up.
Keep plugging away--Jim
Marty:
All banks hire a company called Market Intelligence (MI) out of Boston Mass, to get there BPO or market analysis for each house and then use a local Realor to support or dispute that number. MI uses a computer program to come up with the number that the BPO Realtor see and has to agree with or not. So with that in mind when you meet the BPO realtor at the home make sure you give him a real detailed list or repairs with costs. When you are talking to your loss med rep after they get their BPO numbers back ask how many miles out from the subject property the Realtor pulled comps - I had one just recently pull from 4 miles away to justify the numbers - watch out for that. Also realize that these BPO Realtors make a lot of money just doing BPO's for banks right now so they are not going to stray from the numbers the bank has as a value. They want to keep the Money train a moving down the tracks - if you know what I mean. All this means is that you as the investor have to support your claim with paperwork, comps, estimates, and good photos of damage. Do not let the loss med rep assume, show them in detail!! Fight the numbers!
Hope that helps. Good Luck
Hi all,
Another investor found this link:
www. www.bankofamerica.com/loansandhomes/index.cfm?template=hc_home_worth&statecheck=MD
I think all you'd need to do is change the statecheck= (abbreviations for your state)
I'm not sure if that's the one the Loss Mitigation uses, but it's a start. For Baltimore, Maryland, the numbers are a little on the high side.
Hope this helps,
John
Hey Jim,
After several voicemails to Bonnie (with no return call), I decided to send her a fax blitz today. I faxed it to all 3 Loss Mitigation Fax numers, with her name very large.
...........Guess who called me this morning!
BAMZ
[addsig]
Hey BAMZ
Please keep me updated as to the progress of the SS with BOA. I should be sending the SS package in shortly. I expect with the end of the year it might take a little longer.
Marty
Keep us (fellow investors) posted with the progress. This is great information.
Keep us (fellow investors) posted with the progress. This is great information.
Hey Marty,
I sure will! It may take a little longer with BOA right now because they just combined a couple offices and the L/M is very unorganized!
Be sure to keep in touch with your homeowner to keep them in the loop.
BAMZ
[addsig]
BAMZ--
I called for Bonnie yesterday and got VM so I hit "0" and got Dave Nowak in the office. This is the guy I told Marty about. Anyway I told him another investor was trying to get ahold of Bonnie and she wasn't returning phone calls. I can't remember the number but he said Bonnie had an enormous caseload. Bonnie called me this morning about a case and I missed her call. Then I got her voicemail. Don't hesitate to dial 0 and get someone else in the office. They normally will take care of you. Keep us posted.
jim
Hey Jim,
After I sent her that fax-blitz to call me back, she did, and we started negotiations yesterday. We are on the third counter-offer right now. Still not where I want to be at, so I will keep you posted!
BAMZ
Bamz--
Funny thing happended. Bonnie called me and said she couldn't find the contract. A colleague of her's told me what the appraisal came in at which was way low (I knew the appraiser). So the new contract I sent to Bonnie was $10K less than my original offer and it all worked out just fine.
Keep us posted--Jim
Jim,
The crazy thing about BOA is that they actually send out Appraisers rather than Realtors for BPO's. I presented my case and my comps to the appraiser that I met at the property. From past experience with her, she always is on the high side. Based on my last conversation with Bonnie, the appraiser came in waaaay strong on this property.
Based on that information, it appears as if this one will fall to the wayside. It is a good thing that I've got two others in the works right now!
If something comes of this, I will certainly post the outcome!
BAMZ
Everyone gave great info on BOA, but did I miss the phone numbers? If they weren't in any of the posts, would someone mind posting the phone numbers.
Thanks,
Betsy
Would I contact the same person for a BOA REO? Just found one of interest. Any advice?
Betsy,
Here are some BOA numbers
Phone: 716-635-7068 Loss Mit
Fax: 716-635-7253 Loss Mit
-----------------------------
Beth,
You would need to contact the REO department at BOA rather than the Loss Mit department to get details on a current REO. You can reach the main line at the bank at 1-800-846-2222 and they should redirect you from there.
BAMZ
Bamz--
I think Bonnie tries to play hardball to the extreme. However, I think it depends on the day because one day she's pleasant and willing to consider anything and the next she's making fun of you offer (We can all smile and the first offer we make for shorts).
I'm sure you already do this but after the appraisal is completed I pull the one doing the appraisal aside and tell them the whole "bad story" and ask for the lower end of the spectrum for appraisal number.
Sometimes this has worked and sometimes it back fires. Funny thing I was working a short sale last year and the appraisal came in EXTREMELY high on a very WEIRD looking house. Well, the thing ended up going to auction. Out of a last ditch effort with the lender I told them, "You will be losing your butts on this deal." I know not professional but they weren't going anywhere anyway.
Well, a year later the house is still vacant and even more run down looking.
This is the thing that drives some investors away from shorts. Consistency is difficult to achieve at this business until you've learned the do's and don'ts.
Let us know if it works out--Jim
Tomjerry and Bamz,
I'm reallly curious to what percentage your offers are to the BPO values. What is BofA willing to go for?
Thanks!
Bginvestor
bginvestor--
I'm probably not a good person to ask. I go about things differently than most and it will probably bite me in the butt. I go into each deal and evaluate at what price could I easily sell the property if it was in good shape. I try to make at least Xamount on each deal. Then I lowball the short offer and start negotiating from there. If I can not get to an agreement where I can still make Xamount after repairs and selling the house for a fair price then I pass. Anything over xamount is gravy.
Doubt if this really answers your questions but it is just how I approach things. Also, I find different loss mit reps can be much easier than the next. Finally, I'm really no expert on this issue and have done limited short sales. I've done 5 this year and learned a lot of mistakes in between.
Jim
Hi bginvestor,
Some Short Sale investors will tell you to make an offer to the bank (no matter what the BPO is), that makes it a workable and profitable deal for you. When it comes to short sales, you will have your set of rules, but also the banks set of rules. The trick is to learn how to play by both sets of rules.
There is no magic or science to how I present my initial offers either, but I hope this helps!
Sometimes I am requested by the bank to present my full SS pacakge (including the offer to purchase) before they will order a BPO. If this is the case, I pull comps on other houses, access the FMV on the house and determine where I think I can get the BPO to come in at. Based on that figure, I offer 70% of the number. I know my market well, so it doesnt take long to come up with what (I think) is FMV on the property as is.
Sometimes that banks will tell you what the BPO came in at if you ask, and sometimes they will not tell you at all. Therefor, I always base my initial offer off of what I think I can get the BPO to come in at.
The SS that I am trying to do with Band of America, they actually send out a licensed appraiser. After I presented my case as to what I felt that the FMV was for the property, she didnt buy it and the BPO came in WAY high! When that happens, you are generally out of luck. I can guarantee BOA that they will not be able to sell it for what the appraiser priced it at, but I may have to let them find that out the hard way! NEXT . . . .
Best of Success!
BAMZ
Guys,
Thanks for the quick response!!!! It is very interesting how investors approach the same problem.
I'm working a SS right now, and I have the same thoughts as BAMZ offering about 70% of BPO. This is really where I need to be for the deal to make sense for me. Problem is , I 'm not sure if I should offer a little lower because I don't have much wiggle room for negotiation?
It just occurred to me that I would really like to know if the lender knew that you were an investor in this deal or not. I've heard that there are negatives.. Its seems weird/conflicting to me that you can represent yourself as the seller's friend helping her through a SS, although you end up being the buyer with a company name like " Innovative Real Estate Investments" (sounds like investor to me).
Best Regards,
Bginvestor
Be advised there has been a sharp increase last 45 days in forclosure of single family dwelling it appears to be a constant.
As to BPO, I do not do them anymore as I had a target figure given me on several occasions that was statistical trash.
As a one time appraiser and a Real Estate Broker, in justification of my BPO I fully documented with six comps pictures measurements. Checked the Escrows for forcemont or adjustments did a real job. I was right on. The Statistic was wrong. I stopped doing BPO's.
Being an ex Academic,(dirty word) I monitored the property as it was marketed. It died and flopped helplessly in the MLS until a reduction was made and it finaly sold within $1500 of my BPO. Time on target 5 months.
A spoiled child at heart, I documented all of these items and sent the packet to the Lender.
Strange, I have heard nothing back, wonder why. Oh my.
Bladder stimulated. Lucius
WOW! Look at all the short sale experience gathered at one time YIPPEE!. Sorry about that I would first like to say hello you all are great with the information. I am currently reviewing the Ron LeGrand/Jeff Kaller short sales course(which I think is great) and would like to ask.............
What are the best ways for find a short sale, does telling the lender you are helping your client/friend work, I have a private lender what now?.....What if anything is the most important thing I should be looking at or concerning myself with when trying to do a short sale. Thank you very very much!!
BMAZ,
You manage to piss Bonny and you are going to forget SS deals with BofA. They are extremly bussy since the number of foreclosures has picked up. Give her some time and she'll return the call when she got the time to consider your SS application.
Someone has mentioned Market Intelligence:
FNIS® (Fidelity National Information Solutions) Market Intelligence helps banks and consumers to lower the cost of borrowing by lowering the cost of collateral valuation. They have developed a whole suite of valuation products that match risk with cost.
More than 50% of the top 50 lenders in the country now youe FNIS Sytem. Deal with smaller banks and you might get lucky to avoid them > <
omega1,
When you work multiple properties at one time, you tend to "care-less" about those that dont look promissing!
Whether Bonny calls me back or not, I guarantee you that I will not lose any sleep! The good news is that while she was dragging her feet with a rediculous counter offer, I've got another SS (that started at the same time) that I am closing on this monday! Work as many as you can, and you will get plenty that will stick!
BAMZ
Quick question following up with BOA short sale.
BOA and I are at an agreement for a short sale except for 1 importanct aspect-----they want a promissary note signed bythe sellers. There is no way the seller can afford it on top of a divorce after 1st of year and having to find a place to rent.
I countered with no promissary note which I know is slim to none but anyone have some ideas for me. I've never had a lender ask for a promissary note although I knew it happens.
Any suggestions?
Jim