My saga with the never ending Short Sale in Laguna Niguel, CA. continues. For the property history see my previous post. A couple interesting developments in this ongoing battle..the Investors for this one purchase money loan are..drum roll here…Bank of America! Well..that puts an interesting twist on things, doesn’t it?
Bank of America is the Servicer..they collect the mortgage payment every month, but on this particular note, they decided not to sell it off to a group of hedge funders or to Fannie or Freddie, but rather to keep it in their portfolio of “high-performing Loans”…or whatever they label that particular folder.
Normally, when I have only one loan on a primary residence and it’s a portfolio loan, I jump up and down because I’m about 99% sure I can get it closed relatively quick. This one should have been a slam dunk because the Sellers get me their docs immediately, and the hardship is a separation from spouse with reduced income, making it necessary to let the home go. Not so fast. If you have been following the news, you know that the Banksters just got a 26 billion dollar settlement agreement completed with the Federal Government. I don’t know all the details..I do know that the principal reductions that they are to take on some of their notes ONLY pertain to portfolio loans..not Fannie or Freddie. Hmmm..coincidence here? I suspect there is some extra money to be made at taxpayer expense, having to do with offering to reduce principals on portfolio notes..and that is what this one is!
So..yesterday I get a call from the Bank of America media contact person. She has read my blog and seems sincere when she says she is going to look into it. “I can’t promise you anything, but I will get back to you.” I’m still waiting..
Meantime..my esteemed negotiator, Camele, calls. She obviously knows nothing of the uproar surrounding this deal, which is curious since I communicate with her a couple times a week via Bank of America’s online short sale system, Equator. Nevertheless..Camele calls and says something like,
“My Investors want this deal to work, so let’s see what we can do.”
“Camele…your Investors are one and the same..Bank of America, and they absolutely do NOT want to sell this house! If they did, they would accept this offer of $865,000 because I have their approval letter, and so do you by the way, from my last Buyer, Buyer #3. Remember them? They were approved to close on this house March 16, 2012 for the Bank of America approved price of $865,000!”
“Well, my Investors have to see less negative numbers, so perhaps you would reduce your commission?” says Camele.
“Camele..I have spent almost one year on this short sale. I have done my job exceptionally well I would say, by bringing them not 1, not 2, but FOUR qualified Buyers..my commission is off the table.”
Next she suggests getting the Buyers to throw in some money. Not an option in California first off, and secondly, their Lender has already said they will not appraise this property at a dime over $865,000. Shock and awe here because Buyer #3 Lender appraised the home at $825,000!.
“I want a copy of that appraisal, Camele, and I also suggest that no matter the number on it, your highly qualified Investors fire him (or her)!”
What don’t they understand here???? Your Investors gave me a number of $865,000 as FMV. I bring yet another buyer to the table at that number and you raise the number to $1,050,000. Isn’t it interesting that the new Appraised Value matches my original List Price which I picked out of the air based on the note value of approx. $1,085,000.
There is something very fishy going on with Bank of America’s Short Sales. They do not want to sell this home..period! Never mind what you read in the papers. Let’s see if I get anywhere today…I’m not holding my breath.
Oh by the way..the Buyers’ Agent told me yesterday that the Buyers will not go $1 over $865,000. So..if you see it re-listed at $1,050,000, just wait..it WILL come down. To think this home could have been closed six months ago..now THAT’S good business Bank of America!