Tag Archives: negotiations

Fielding a Lowball Purchase Offer on Your Home

Consider before you ignore or outright refuse a very low purchase offer for your home. A counteroffer and negotiation could turn that low purchase offer into a sale.

refinancing your homeYou just received a purchase offer from someone who wants to buy your home. You’re excited and relieved, until you realize the purchase offer is much lower than your asking price. How should you respond? Set aside your emotions, focus on the facts, and prepare a counteroffer that keeps the buyers involved in the deal. Continue reading

ING Steps Up & NFCU Waives Promissory Note

This post is a follow up to my recent one (which you can view here) regarding a short sale with active military personnel.  Another military couple in a new transaction were forced to sell their home due to NFCU’s (Navy Federal Credit Union) refusal to help them keep their home.  NFCU then forced them to accept a Promissory Note when selling their home.

Navy Federal Credit Union logoING Bank, who held the first loan, did not require any money from the seller–after I demanded that the seller would provide no contribution. This references the new California Law, SB 458, which allows the lender to collect for closing costs to the transaction only from the seller. However, this is still a gray area and only an agent who has the necessary experience to negotiate with banks, like myself, is obviously worth more than his weight in gold to anyone who may need to sell (paticulary those with assets to protect).  Those agents experienced enough in this area will make sure that the seller or buyer will not be required to make any contributions. 

The buyer, who was also being forced to contribute in the same transaction to the second loan with Chase, was also permitted to not contribute because of my negotiating ability. Even the buyer’s agent, having seen my emails to the lien holder, confided that he couldn’t believe how much I was able to do on behalf of the buyer. 

The commission was reduced drastically as a result of my negotiations, but more importantly, the banks were able to save money by me negotiation an above-fair market price on the property.  My hope is that more people will realize that I do my utmost to keep buyers’ and sellers’ interests (and assets!) above my own–and if they believe that, that they spread the word that I strive to be the best of the best.

This new short sale with NFCU had a requirement: that to be considered for the short sale, the seller would be required to take back a promissory note (which in this case was $30K after the seller took out over $80K cash when the market was booming). A seller, in this sort of case, by letting their property go to foreclosure, may create a battle for a settlement on that second loan of over $80K, due to there being no equity in the second loan and the first loan being the foreclosing entity.  In cases such as these, a short sale becomes the best alternative to avoiding hiring an attorney to settle this.

On this transaction, this promissory note was approved prior to the passing of SB 458 (which allows no contributions from the seller to the loan that would pay it down, reflecting a deficiency judgment). My persistent communication with this lien holder resulted in a complete forgiveness of the total debt–saving the seller $30K!

Without a properly experienced agent working in the best interests of the seller and buyer, this would have spelled disaster.  Even with working with some of the more experienced agents out there.

For the Best of the Best to represent you–whether selling or buying–call me at (619) 890-3648.  Thank you for reading!

ING Attempting to Steal Money From United States Military Personnel in a Short Sale

The following is an excerpt of recent negotiations ongoing with ING bank for a short sale transaction. Here is an example of what certain banks are still doing to literally steal money from innocent people, let alone in this case, an active duty military stationed locally and getting ready to retire, who does not have large income.  The new short sale law SB 458 has a controversial statement that was covered in a prior blog post (viewable here: “Short Sale Memoirs & New Laws“) regarding a contribution by a seller towards closing costs as being allowed.  This fact has been confirmed by attorneys as being interpreted as a direct violation of the law due to the fact any contribution for closing costs, taxes or otherwise is directly increasing the balance of the net sale for the lender and lowering the loss for their loan, thus breaking the law.

In addition, this lender as you can see wants to also steal money from the agents, leading me to believe that the negotiating person will get a cut of whatever he brings in. This needs to completely stop as these lenders are making it hard for most agents to earn a living themselves for their families.

While this one is not over, it shows you what is partly going on in a short sale transaction, not including negotiation with buyers and other lien holders, that make the work even more cumbersome only to have your income reduced due to the greedy tendencies of lenders that are still out there.

I anticipate a successful result as long as this lender comes to their senses.

I welcome comments…..

ING logo

 ING’s letter to me:

John,

I received the 2nd lien approval, and ran the numbers. Rather than going back and forth on negotiations, here is what I need to get this deal approved:

  • $3,700 cash at closing from the seller to cover the property taxes and closing costs

o Yes, we are allowed to ask for this money, as it is not going to the mortgage or missed payments

  • 4.5% commissions to help with part of the 2nd lien.

o As I said before, your listing agreement is not with ING DIRECT, and our max commissions are 5%. This is only a .5% reduction to help the deal get approved.

I will pay the 5% commissions if the $1,300 is added to the purchase price. I have been doing this job for a while, and knows what my credit review committee needs to get a deal approved. This terms are it. Assuming all parties agree, I can finish the file and have a decision for you in a few business days.

 

And my reply:

Dear ING

The seller will not be bringing any contribution to the table. I have already stated that. Any difference in costs, including commission contribution that ING refuses to pay or absorb will have to be covered by the buyer and if the buyer refuses, then I will have to find another buyer to pay that or the property will go to foreclosure.

Any contribution by the seller can be interpreted as a contribution to the loan and this has been confirmed by numerous attorneys. You are directly taking advantage of military personnel that has sacrificed his life for 20 years for our country, besides if the property goes to foreclosure, there is no recourse on this loan by ING, only more losses. No other lien holder in a short sale has ever done this to a United States military personnel borrower. You and ING are now crossing the forbidden line of respect for our military. I hope you cause ING to reverse their stance in this case. You have a borrower trying to do a good thing by selling the property early to avoid further losses to the bank only to get penalized for it.