I heard from a fellow Realtor friend that the buyers just lost out on a home they were trying to buy. They offered more than asking price and asked for a 5% credit back towards closing costs. Well the bank’s short sale negotiator in their infinite wisdom decided that they Will only credit back 3% towards closings costs not 5%. So even tho the buyers offered more than asking price to cover the credit back, the banks uneducated rule (in my opinion) stopped the sale dead. The funny/sad part is when the new buyer gets a loan, it’s cash to the bank in the end anyway. It Does Not Matter what the credit back is to the new buyer as the bottom line is what it’s all about anyway. At least I would think a negotiator should have been taught in Negotiations 101.
And our TARP $’s go to the bank who hires these people??? Oh that makes me feel oh so much better.
The whole point of the short sale is to save some of the sellers already tarnished credit and the seller gets $ZERO equity anyway.
Actually it is in the banks best interest to successfully negotiate a short sale. Otherwise the lender/bank must go thru the foreclosure process—then faces a property that is vacant and vandalized and is now worth even less money or the seller could file for bankruptcy and tie the property up so the bank cannot sell it for a while. I would think It usually makes good financial sense to sell it for as much as you can, as quickly as you can and minimize the loss.
If I were the CEO of that bank and if I actually knew, that this short sale was canceled because of some imbasillic rule, I would change that rule and hire a Realtor who knows how to sell a home and negotiate, instead of a short sale negotiator who apparently does not, wouldn’t you?