All Forum Posts by: Phil Z.

I find it hard to believe that he would walk away from $100k in equity. There has to be more to the story ..

The bank is going to send out an Appraiser or BPO Agent to value the property in order to compare it to your offer. It's not really a guessing game on what they will accept. In fact its quite predictable! Find 3 of the lowest comps and factor in the property condition to try to figure out how low a BPO value could reasonably come in at.

You may be able to provide the BPO Agent with valid Bids for the work needed so they can 'better' estimate the value. However a bid from the buyer might be a conflict.

The bank itself probably could care less about what work needs to be done, they really just need to plug in the BPO value.

The offer itself should preferably be cash with no inspections and a quick closing. It might not get you a better deal, but they might move the file faster knowing it has less chance of falling through.

Some lenders (like BOA) make everyone sign an agreement that the property will not be rented back to the previous owners. But from what I can remember, not a lot of other banks include that. I think for some investors it's a valid strategy.

If they sent the money back, then the deals off for the time being. You don't own the house and I would wait.

I'm trying to figure out why this company posted all the inner details of their clients short sale negotiation online.

1. The bank can foreclose during the short sale process, but typically not once an approval letter is issued.

2. Because they make money servicing loans. They often do not own the actual note.

3. See #2

The short sale investing 'strategy' works best with houses that needs repairs and meeting the BPO agent to discuss and present all the needed repairs (be careful not to 'influence'). Also being in a neighborhood that has some very low supporting comps will also give you the best result.

The deal potential is all determined by the BPO valuation.

P.S. $8,000 for a 'Short Sale Bootcamp' is a total waist.

The approval letter must specifically note the lender/investors waiver of their right to pursue a deficiency judgement .. or they could come after the seller for the difference later on.

It is not 'required' but its a good idea.

Some banks like BOA have their own (which I use in addition to my own).

It doesnt sound like everyone really understands what they did here ..

It was not only that they were the listing agent, but they waited until they received an offer, then instead of submitting the buyers offer, they submitted their own offer to the bank for much less. Once they got approval of their own offer they double-closed with the 'real' buyer at market value.

It's clearly unethical and apparently illegal.

The standard in CT is a Fire+Co in the hall, a fire in each bedroom, and Fire+Co in the basement. Maybe you can move the living room detector to the hall?