Below are my comments on a letter written by another agent. My thoughts are in bold; the original letter is in italics.
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I see you’re pissed: Let’s break it down>
The negotiator explained that the investor who will be approving the deal will be pulling my seller’s credit information to verify that the seller also stopped paying other creditors.
KEYWORD: Investor – remember in general there are two large categories in mortgages – INVESTOR and PORTFOLIO – an INVESTOR can ACCEPT< REJECT or COUNTER a request for a short sale to be approved. They lent the money. They are the boss. BofA is simply the servicing lender, not the decision maker.
If BofA determines that the seller has continued payments to everyone else they will likely request a promissory note or cash contribution before approving the short-sale according to this BofA employee.
BofA works in accordance to the INVESTORS demands. They are a facilitator of the process.
My belief is this is one more change to discourage people from attempting a short-sale. People who are walking away with a job and still paying their other bills need to either plan on giving them a promissory note/cash contribution to accept the short-sale or plan on a foreclosure on their credit. Realtor’s who take these listings better get the facts upfront from the seller and make sure they are willing to make this contribution if requested by BofA.
It’s on the ERSA form.
I personally think that what BofA is doing should be illegal and prosecuted. They have no right to pull a consumers credit without their authorization and providing a credit report has never been part of the short-sale package or disclosed previously.
Sorry, but no – not illegal. Once again, it’s a demand by the INVESTOR, BofA are just acting upon that request.
Legally they have no recourse if the property is foreclosed upon and it normally is easy to demonstrate that BofA benefits from accepting a short-sale vs. foreclosure option.
?
It basically amounts to extortion and bribery to require a seller make a contribution or accept a promissory note at the last moment after going through the process and trying to do a short-sale on non-recourse loans.
No, I beg to differ. It’s a mitigation. You are asking a financial institution to take less than what is owed. By contractual rights, they have the option to ACCEPT – REJECT or COUNTER based on their guidelines. The seller has the option thru negotiation to decide whether or not a contribution to closing or acceptance of promissory note, fits well into their own financial intentions regarding the short sale. Remember, they are still the deed holder.
This is yet one more example of how our government is no where to be found in assisting the public and these large banks are being allowed to do whatever they want. Shame on Bank of America!
Well, if you want to think that you can. REMEMBER: Short Sales are like cakes – they all different – yet they’re all CAKES> J
I'm Mike Luzzo with Charles Rutenberg Realty, your Orlando Real Estate Agent. I am your personal source for answers to any questions about Orlando Homes for Sale.
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HUGE Community Garage Sale - Waterford Trails
This Saturday, March 6 - 8am - 2pm
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For more information or to participate call Mike Luzzo @ 407-222-4545
Avalon Park Blvd & Colonial, Orlando, FL 32828
Specializing in distressed sales of residential real estate in the East Orlando marketplace. From loan mods to short sales, we can negotiate and mitigate your particular situation. Give us a call!
Why should a seller be especially careful when choosing a realtor to help them buy or sell a distressed property?
Do you want the truth? Ok hope you are sitting down. Most realtors are in the business of real estate because, well simply its easy to get into. The school is easy. The state test is a breeze. The board, the multiple listing service and the agency the realtor joins are all happy to see them become a realtor because realtors pay fees. Without making it easy, there would be no fees to be collected!
The old adage of 20% of the sales force creates 80% of the business and vice versa. In real estate the numbers are closer to 9% creates 91% of the business.
Want to know a real eay way to know if a realtor is worth working with?
Simple!
Ask them for their last 90 day of business activity. The report is easy (once again that word easy) to get. It should show current ACTIVES - PENDINGS - and CLOSED sales for that period. Take a look at it and make the decision.
GOOD LUCK!
Recent Testimonials:
Thank Y-O-U- (and the Luzzo Group) for all you do for the Waterford Trails Subdivision.
Helene G.
March 2010
Dear Mike,
I can't thank you enough for your professionalism and your patience. We really appreciate you walking through all of this (short sale) with us and for being so understanding.
Vanessa B.
February 2010
Dear Mike,
I knew when I met you in Orlando this year at KW Family Reunion, you were the right man for the job! Your professionalism, knowledge and "can do" attitude was obvious. I knew in order for you to be successful you had to surround yourself with team players with the same values making it a win win situation.
I would like to sincerely thank everyone involved, and realize that we are not quite there but this is a huge achievement. My thanks also to the very kind emails from Vikki your Administration manager that kept a positive light on such a dark part of my life.
Also Dee at Portimo Mitigation Services, always kept me updated and well informed throughout the process.
Thanks again to everyone.
Regards,
Peggy R.
NOVEMBER 2009
Always so quick to respond!! Love it! Thank you as always Mike! and you too Vikki! Great team!
Kim M.
OCTOBER 2009
Again, thank you for listening to my concerns and replying. (about my short sale) As you know with dealing with so many of these its an emotional rollercoaster and its just reassuring to have people like you standing in our corner and being a sounding board.
Kimberlee M.
AUGUST 2009
I appreciate all, what you done for the closing, and working with my property with the short sale.
Paul C.
JULY 2009
Thank you for teaching such an informative short sale class....I learned SO MUCH & I truly appreciate your time & expertise.
Beth H.
JUNE 2009
Thank You! It is not often that someone is as good at their job as you are. When our first realtor could not find no buyers and had given up...you didn't! You brought the buyers....you negotiated....you never gave up...you are a man of action...thank you for staying with us and fighting for us.
Brent & Angie E.
MAY 2009
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