Help w/ BOA & FHA deal

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Help w/ BOA & FHA deal

Dave Grosse
Wholesaler · Belleville, IL · Member since 2009 · 206 posts · 44 votes

I'll make this as short as possible -

the owners had an approval to participate in HUD short sale program issued to them in Nov 09. Found a buyer willing to to satisfy the net requirements for HUD in Dec and submitted his offer(A-C deal). BOA screwed around and suddenly told us the file had been closed but they weren't sure why.

I pushed and pushed and had them re-open the file (once they realized the owners had been accepted into HUD's program) dragging their feet the whole way. Nothing was happening so I contacted HUD and they said something to make BOA move quick - got a call the next day saying it had been re-assigned and they wanted to get it closed ASAP.

Well now they issue a new HUD approval to participate letter with a NEW, HIGHER required NET. Can they do this or do they have to abide by the original terms? what can I do? the buyer will not pay anymore than he has already offered. Or do we have to just find a new buyer?

Thanks for any and all replies

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  • Richard Graham
    Real Estate Investor · Outer Banks, NC · Member since 2009 · 121 posts · 44 votes
    16y

    Hi Dave, was wondering how this turned out. I just had a very similar deal brought to me this week. Submitted paper work to B of A yesterday for HUD approval. Hard to believe no one has given you any advice on this. Bigger pockets is better than that

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  • Nick Cifonie
    Real Estate Investor · Joliet, IL · Member since 2008 · 30 posts · 8 votes
    16y

    We've had so much trouble with BOA that we're not taking any more short sales with them.

    The problem we seem to have is the Equator system they use. Prior to them using that, we had good luck with them.

    In any case, we have a couple of old deals we're still working on with them and had something similar just happen.

    We had an approval letter, submitted HUD, etc., and we were ready to close, then for some reason the case showed up as "closed". The person we were dealing with was suddenly not with the company any more (this happens ALL THE TIME!).

    In this case, we had the Realtor whos Equator system the deal was being run through call another number and somehow got a VP on the phone. He explained to him we were ready to close, etc., and he got the OLD price and deal accepted.

    We've not closed yet, should be in a week or two, but in our case we ended up getting a closed case re-opened and accepted at the old agreed upon #'s.

    We find very commonly, that when working on SS's, if we get an answer we don't like, or more specifically something ridiculous that we KNOW is wrong, by simply calling back and asking for someone else, we get the problem solved.

    I know, it sounds unbelievable, but we do it all the time, and get totally different answers and different help just by talking to someone else.

    Gotta love the banks.

    Nick

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  • Dave Grosse
    OP
    Wholesaler · Belleville, IL · Member since 2009 · 206 posts · 44 votes
    16y

    Rich - it was a cluster to say the least, but basically it went a little somethin like this:

    BOA went and did another appraisal, and the new price they wanted was only a few thousand more than before. The buyer was fine with bringing a little extra so we ended up closing the deal. They finally got their heads out of their a**es after i told them and faxed and emailed them the original signed ATP letter from 5 months earlier. BUt it had been 6 mos since the last appraisal had been done so they were still able to use the higher value.

    All that running in circles and arguing so they could net $2500 more on a $160,000 property.

    Count on it going A-C, and start looking for your end buyer asap.

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