Real Estate Investor · Savannah, GA · Member since 2009 · 11 posts · 0 votes
When the offer was made, the lender ordered an appraisal. The lender countered with a net of 85% of the appraised value. I made 3 counter offers but, they wouldn't budge from the 85% net.
In order to postpone the foreclosure, I accepted their net. Now they've ordered a second bpo!
I thought we were done when I accepted their net. Thought all I had left to do was to finish negotiating with the 2nd mtg.
Real Estate Investor · Ocala, FL · Member since 2008 · 742 posts · 463 votes
16y
H.M.,
You can change the Purchase Contract anytime you and the other party agree. But, that does not mean the Lender(s) have to approve that newly changed Contract. Also, the Lender(s) will sometimes act like they must totally review the entire Short Sale Package all over again, with a changed Contract.
Now, as for the BPO's. Lender(s) can and will order them many times. I have negotiated a Short Sales where 5 BPO's were ordered.
As for your offers. I have written many many times about this. You MUST justify any offer that you submit to the Lender(s). The better you justify with documentation, the better chance you have of the Lender(s) realizing your offer is worthy.
Real Estate Investor · Savannah, GA · Member since 2009 · 11 posts · 0 votes
16y
I was waiting for acceptance when they ordered a 2nd. So, that's not uncommon, ok.
So, since they haven't officially accepted my offer, this means that I can withdraw, change the offer price or add language, etc. Is that your understanding?
So, when the negotiator says-"this investor will accept a minimum of 85% only"- what is she really saying?
Flipper · Phoenix, AZ · Member since 2009 · 973 posts · 679 votes
16y
Wouldn't by any chance be Fannie Mae would it? We accepted a counter offer that they made with NO alterations, and they still came back with a higher price again.
Banks will do everything they can to find the highest deal. Don't fall in love with the property to the point that you'll make a decision you shouldn't.
Specialist · MA · Member since 2009 · 858 posts · 306 votes
16y
HM, maybe the BPO will even come in lower helping your cause. We demanded a second BPO with a counter offer and the bank agreed and sent a second agent. We were able to support our offer with comps and two good CMAS, so the BPO was done last week and now (fingers crossed) I'm waiting to see if they'll budge in their price at all.
Good luck
Rental Property Investor · Raleigh, NC · Member since 2009 · 76 posts · 2 votes
16y
Be prepared for a third BPO if there is more than a 10% difference between the two BPOs! I had that happen to me recently.
Also, if this is an FHA loan or is invested or guaranteed by FNM, FM or JM, they will issue an ATP (approval to participate) based solely on the BPO/appraisal and require a net of 88% of the appraisal price. Period. They will let it go to auction before they take less than that. I've been through this with Wells Fargo and Bank of America.
The purchase contract is between you and the seller, not the bank. You can always sign a new contract before the bank approves one but be prepared to add more time to your waiting period and expect them to have a problem with it.
Real Estate Investor · Ocala, FL · Member since 2008 · 742 posts · 463 votes
16y
H.M.,
You can change the Purchase Contract anytime you and the other party agree. But, that does not mean the Lender(s) have to approve that newly changed Contract. Also, the Lender(s) will sometimes act like they must totally review the entire Short Sale Package all over again, with a changed Contract.
Now, as for the BPO's. Lender(s) can and will order them many times. I have negotiated a Short Sales where 5 BPO's were ordered.
As for your offers. I have written many many times about this. You MUST justify any offer that you submit to the Lender(s). The better you justify with documentation, the better chance you have of the Lender(s) realizing your offer is worthy.