BofA appraisal cancelled Short Sale

[pookey]

I'm wondering if anyone else has had this happen. We have 2 rental properties in Short Sale. The first of the two just got canceled due to "insufficient offer."

Thanks to info on this forum I found the e-mail address of the President of BofA and wrote to her; got a reply from her office within 24 hours (on Friday). Then today (Monday) a person from her office called and said that their appraisal came in substantially higher than the offer and that they won't take an offer less than FMV as determined by their appraisal.

Their FMV estimate is way high - we were going to sell it in 2006 before the RE crash and the value the RE agent gave us at that time was close to what BofA is saying FMV is now.

Being about 3 months into the SS process I'm thinking a deed in lieu or letting it go to foreclosure are our only options.

It does have a HELOC on it as well and it has been re-financed, so it is all recourse debt. My understanding is that a DIL might leave us open to the HELOC holder to come after us.

But we are in CA so my understanding is that a non-judicial foreclosure would not leave us with a deficiency to deal with.

Any comments would be appreciated - I'm just floored that they said they would not accept an offer less than FMV - at 85% of their FMV we "might" be able to generate an offer, maybe even at 90% though doubtful - but there's no chance we'd get their FMV.

[HopingtoFind]

Are you working with a Realtor experienced with short sales? What your Realtor needs to do is control the BPO process. When the bank sends out their broker to do a BPO, your Realtor needs to meet with them and show them what the comps are.

I believe DIL will only work if you only have 1 loan. You're correct to think that if your first forecloses using non-judicial foreclosure, which most of them do, they cannot go after you for deficiency. HELOC is another matter, it is recourse and will most likely go into collections, which will come after you.

[pookey]

Supposedly she is experienced in short sales. We are working with a 3rd party negotiator and they told us to use her because of her experience with both short sales and them. I'm not impressed with her. I think she way underpriced the house given her own Comparative Market Assessment back in July. And I don't think she was with the bank's appraiser.

They said I could pay for an appraisal myself and contest theirs, but it sounded like lip service.

[nativelasvegan]

It may not involve the cost of an appraisal. I would contact a Realtor in your area and explain the situation to him/her. Ask them for comps. As a Realtor, I would provide you with comps, free. Any ethical Realtor you find should do the same. Shouldn't cost you anything at all to contest the value. If you lived close to me, I'd send you the comps today via email.

Good luck!