My Life as a San Francisco Realtor: US Bank Short Sale - Price increased by $310,000!!!

US Bank Short Sale - Price increased by $310,000!!!

I've been working on a US Bank Short Sale for a long time. Lots of twists and turns.

Small houseIt's a small 2BR/1BA home in San Francisco, and it does need a number of repairs. It doesn't have granite counters, or stainless steel appliances. Tile counters and white appliances instead. It has single pane original 1926 windows and floors that seem to sag in two or three places. Garage door opener doesn't work. Water heater at the end of its life. Did I say it was small? Oh yes, I did. $56,000 in estimated termite / dry rot repairs. Roof may need to be replaced.

The previous Appraisal (by a real appraiser) came back with an approval for the Short Sale at $690,000. Everything was going well until the buyer had some issues getting a new 4506T report back - he'd amended his tax returns and they weren't showing up yet. Missed the short sale approval date and deadline.

US Bank didn't make us start all over. But said they had to order a new BPO. Curiously a letter arrived from the BPO agent a number of days before he was to do the BPO addressed to my client, the seller. It was soliciting business to short sale his home. At any rate, he came to do the BPO, and wouldn't listen to any of the reports about the home's defects. (BPO agents aren't supposed to talk to anyone, you know.) And remember, this was a BPO and not an appraisal.

Later  I received an email from the negotiator. Didn't say anything other than that he'd left me a voicemail message concerning a verbal counter offer. I couldn't find the voicemail on either my cell or office phone. So I called the usual short sale point of contact - negotiator is not available. So I spoke to the next available person.

 

We have until this coming Friday to respond. The approved price went from $690,000 to $1,000,000.... I'm in shock! I know the market is improving....but a $310,000 increase in 3 months??

 

John M Scott, Broker / Owner, Scott Keys Properties, Certified Distressed Property Expert (CDPE), Council of Real Estate Brokerage Managers (CRB), serving San Francisco and the surrounding San Francisco Bay Area

Comment balloon 4 commentsJohn M. Scott • July 22 2013 06:06PM

Comments

John, You have my heartfelt sympathy on this one. God only knows what the BPO agent valued the property at. I would demand a full appraisal by a local appraiser.  

Posted by Kathleen Daniels, San Jose Homes for Sale-Probate & Trust Specialist (KD Realty - 408.972.1822) almost 5 years ago

Hi Kathleen, that's exactly what we are doing.

Posted by John M. Scott, Broker / Owner San Francisco Bay Area (BRE # 01442690, Scott Keys Properties) almost 5 years ago

My experience with USBank is that they invent obscure and impossible requirements and then simply let the transactions die. 

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) almost 5 years ago

Lenn, they did so well for so long, and then this! Everyone was totally shocked.

Posted by John M. Scott, Broker / Owner San Francisco Bay Area (BRE # 01442690, Scott Keys Properties) almost 5 years ago

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