Bank of America; short sale lemon
Just read an article in the New York Times called Banks Always Win. How serendipitous when I am encountering that very thing with my now year long Short Sale with B of A. I have been writing of this journey because it is so unbelievable to me and the Sellers, that it deserves the written word.
When you see a Short Sale listing that has been sitting for hundreds of days and the List Price keeps going up, then back down, it’s because the appraisal came in too high, the Investors believed it, and their counter was so far over what the property is worth that the Buyer walks, shaking their head in disgust. Does B of A really think that because they have a higher value in their little pea brain it is the Reality of the homes’s value? Buyers set the value you ding dongs. It’s called a Buyers’ Market for a reason. Your property is worth what a Buyer will pay..period!
First appraisl one year ago (4/15 marks 365 days with this listing and four qualified buyers). Anyway, first appraisal comes in at $980,000. At that time, I tried to convince them that my offer of $850,000 was fair. No offers came in until the List Price had been reduced to that number from my original list price of $1,050,000. Buyer of course walks.
I raised the LP to $980,000 and began reductions. Again..no offers until I hit $850,000. B of A counters at $980,000 again. Buyer #2 walks.
I get Buyer #3 at $850,000. B of A does a new appraisal. Must’ve been closer because they counter at $865,000. Buyer accepts with a conventional loan. Lender appraises the house at $825,000. Buyer #3 walks.
I List the home at $865,000..the “approved B of A price” per the approval letter which was set for a March 15,2012 close. I get an offer of $865,000 and this time I call the Lender. Local woman and she guarantees that she will fund this loan. OK..I submit the offer. Darned if the B of A negotiator doesn’t tell me “this file is aged,” so we close and re-open it once again. New appraisal is ordered. Yippee! Surely, this time it will come in at $865,000! Not so fast…
This appraiser has decided that over the past year, the home has gone up in value to..drumroll..$1,050,000!!! Hey, wasn’t that my original List Price? Why yes it was! Sure wish I could get them that number and make more money. I get the file escalated and send in the ONLY THREE COMPS that have SOLD in this SAME NEIGHBORHOOD over the past 6 months. All support this offer..maybe a little less in fact. I’m sure this time they are going to approve this offer. But no…
B of A in their wisdom, have countered at $925,000. Now, if this home was EVER worth $925,000 we would have already received an offer at that number. Well, they say..your 3 comps are very close indeed, but the comps our appraiser sent us are higher and we are choosing to use those. REALLY???? Why go outside the exact gated community for comps? Across the freeway puts you closer to the beach..values are different. A neighboring community is valued higher because of the builder.
Did B of A hand our a booklet for their appraisers that changes the rules? Since when does using DIRECT sold comps not hold any merit? I thought the BEST comps were what give you true value for that home in that neighborhood.
Oh, the best thing. I just received my first back up offer. Agent says his clients don’t see the value of $865,000 because another Short Sale just closed in the community a couple months ago for $850,000, so they are offering $815,000 since values are declining.
Who wants to take bets that B of A runs off my Buyer #4 at $865,000 and ends up with at least $50,000 LESS when they do finally accept an offer. Hee-hee..why the banksters continue to decimate property values…
