All Forum Posts by: Jay L.

Scott,

Thanks for the advice/reply. After sleeping on it...I think I'm pretty much going to chalk this one up to experience and walk away as the investor on this deal.

I don't think being "flagged" is a good thing at all, so I'll just move on to the next deal with the knowledge now of NOT using an option contract in future offers.

It is a CONV loan, so hopefully Suntrust will pay my negotiating fee.

This is my first short sale I've done on my own and I've ran into an issue and don't know how to respond. I've put together a complete and professional short-sale package, and sent copies of all docs to both the 1st and 2nd lien-holders on 9/13/2011.

My offer was submitted via an option contract w/my LLC as buyer and contingencies were included. I alerted both lien holders to the fact that I was an investor who would immediately market and resell for profit. Suntrust is the 1st lien holder. EMC/Chase is the 2nd. After being told by Suntrust that my negotiator was a woman by the name of Maya, I was contacted by a man name Doug from Suntrust via email & phone on 10/15/2011.

He proceeded to tell me that the entire SS pkg I sent over was not legible and that he needed me to resend the following: 1)Contract & HUD, 2)Hardship letter, 3)Aug & Sept bank statements, 4) Listing agreement.

After gathering the requested docs, I resent everything this morning. He responded within 2 hours via email to tell me that the investor does not take option contracts. I was alright with that and was in the process of putting a PA together when I got a phone msg from him. I called him back and to my surprise he stated that Suntrust will not allow me to market the property for resell and that they will be including an addendum that will not allow me to resell the property for 12 months.

Has anyone experience this with Suntrust? I really didn't know how to respond other than to tell him that I would discuss it with my partner and get back to him.

What are my options and how would some of you more experienced negotiators respond to this? I've heard of "90 day seasoning issues" but 12 months seems a little over the top.

BTW...I am a licensed realtor.

Mark,

I'm located in Michigan and I've recently ran across some nice deals you may be interested in.

I would be interested in working together.

I usually never interact on forums, but I've made myself a promise to get involved more. So thanks for the response.

The language in the LOI is pretty much standard for both. A couple of the key points that stood out to me regarding their LOI was:

- Their LOI calls for a deposit of $4k upon the execution of a binding agreement.

- Seller will provide Purchaser only with information in Seller's possession which is deemed as nonproprietary by Seller.

- If Buyer requests that the Agreement of Sale be negotiated prior to the end of the Due Diligence Period, Buyer shall make such request in writing and deliver the same to Seller, together with a check or wire transfer in the amount of 3k which is a deposit for seller's legal fees in connection with the transaction. If settlement occurs, Buyer shall receive a credit at closing of 3k. If settlement does not occur, Buyer shall receive a refund in the amount of 3k less the amount of Seller's actual legal fees.

I am aware that everything is negotiable in the LOI, so I am not too concerned with the deposit amount(s) that the seller is requesting. I've been involved with commercial real estate now for the last 3 years. This was a first for me, and it made me wonder if anyone else had ever received a Letter-of-Intent from the lender/seller so hastily.

I am negotiating with an agent for a lender on an REO 5-unit bldg in Michigan. The bldg was originally listed for 130k with 3 units occupied. After about 4 mos on the market, it was discounted down to 50k with 1 unit occupied. We've told the agent that we are only willing to pay up to 5k per door. Due to our stance, we have been back and forth on pricing now for about 3 mos.

We got an email about 10 days ago from the lenders agent stating that the lender has agreed reluctantly to accept our offer of 23k and that we should sign and return the lenders attached LOI.

We've never had a lender provide a LOI to us. We did not sign the LOI with the terms the bank had provided to us. We did submit to the agent our own LOI, and we questioned the agent as to why we had to use the lender's LOI. He said he would get back with us, but we have yet to hear anything.

I'm not too worried about the deal itself, because there are more where that came from. We just want to be sure that we didn't screw up somehow. Is it normal for the lender to provide the LOI?