Comments on: UPDATE! Bank of America’s Short Sale Guidelines Have Changed

By: David Landman

David Landman — Thu, 13 May 2010 20:01:09 +0000

PMI will pay anyway if house goes to foreclosure or if will be short sold it….

By: David Landman

David Landman — Thu, 13 May 2010 19:59:59 +0000

How are you going to increase the payoff for the 2nd lien holder if the 1st lien holder doesnt approve it and it will not be showed nor disclosed on the approved HUD1? nothing can be done under the table, buyer can come up with extra funds but everything has to be included on the HUD 1. The only posibility in this case is if the house is a bone doesnt sell, 1st lien holder will probably accept to pay more than 3k to second if propertty already went to public sale and nobody bought it, but if the house is a hot potato, bank will never accept to pay more than 3 k to 2nd lien

By: Debi M.

Debi M. — Wed, 05 May 2010 23:58:42 +0000

I am a Broker working with a purchaser on a short sale being serviced by Bank of America. We were under contract with seller signature right away but we have been waiting over a month for the bank to provide an answer. Two other offers have fallen by wayside and we were assured there would be a quick answer since ours is within the required net for the bank and approved through FHA.

I have written the Whitehouse site in hopes to make our government aware of the costs to the taxpayer who are also the ones who are attempting to buy these homes. Plus the neglect of the banks to be expedient in their position to make decisions due to the fact they make more and have job security while holding the assets. No one is reviewing the companies/banks who are part of the demise of our Real Estate market. I have had no response from the Whitehouse representatives.

Good people have lost their homes due to the flagrant, unprofessional attitude of the employees and hierachy of the banks. We should be all working in a manner to resolve these issues quickly to bring us out of the position we are as a country.

By: Jennifer

Jennifer — Tue, 30 Mar 2010 23:08:08 +0000

Unbelievable! We have been going through this with BOA since 8/09. We were under the impression, BOA accepted our offer of $240,000 in 11/09. They have been taking forever with any responses. The seller’s have agreed to the shortfall and have provided all required documentation to support the short sale. We were advised to move forward with our financing to close in 2/10. Our credit union sent out an appraisor for the lender (we later found out the loan was to be sold to BOA upon closing and it was their underwriters and appraisor). The appraisal came back at $238,000 and BOA refused to underwright the loan on the home. We offered to set up an escrow account for repairs, but they refused. They would only underwright the mortgage, if repairs were made prior to closing. Naturally, we declined and obtained funding outside of BOA. That appraisal is pending. Now, BOA has refused to accept anything less than $266,000? They do not care about their own appraisal, or that they are not receiving any payments on the home and the home is in worsening disrepair, as the months progress. We are heartbroken, as well as the sellers. Good work Bank of America

By: Teresa Barron

Teresa Barron — Tue, 27 Oct 2009 16:49:48 +0000

If this is the case, than why not structure the offers to address the bank with the buyer offering to pay the primary lender an amount and the secondary lender an amount within the purchase agreement. Then total the amount being offered. Then the amount would be able to be financed and prevent the buyer from having to come up with more cash out of pocket.

The second idea is to approach the second with the offer first. Offer them the opportunity to buy out the first in a separate, yet assignable contract which would allow the buyers funds to cover the transaction. In this case, the first never sees the buyers offer?

These are just a few questions I am trying to get answered through our boards legal team. If you have any opinions or contact information for someone to deal with at BofA I would appreciate it if you can forward it to me. I have been on hold trying to reach them for half an hour so far today, and yesterday an hour before they all went home and didn’t answer the call at all.

By: Carlos

Carlos — Fri, 21 Aug 2009 05:28:38 +0000

Im going thru the same thing with BOA…
The seller’s have’nt paid the mortgate in 8 months.

I’m sitting here ready to sign but they are taking months for something that is obviously in there favor…

Nice BoA Nice

I’m now also looking at a for sale by owner…
Less Hasell, A hand shake, Simple contract and I have a new home.
Done…!

Nice BoA Nice

By: Paul Francis, CRS

Paul Francis, CRS — Thu, 06 Aug 2009 21:09:30 +0000

It certainly is interesting how Bank of America is handling their short sales… even when the proposed sales price is higher then all of the most recent surrounding sales.

It is as if they want to lose money.

By: Andy

Andy — Tue, 28 Jul 2009 16:03:02 +0000

I’m a short sale buyer, or should I say attempted buyer. My first offer went in in January 09, my third offer, which is above what the house appraised for LAST fall, has been “in” for 14 weeks now. BofA recently had the house appraised, changed the locks and took pictures as the owner has to all intents and purposes abandoned the place to its fate. The Phase One Negotiator has yet to declare and I’m under no illusions that there aren’t yet weeks to go… As a SERIOUS question, are Banks procrastinating because they’re in receipt of Public money, and hope the market trends up before they let short-sale deals close? Does anyone have any suggestion, tip, or ploy (ethical or otherwise) to speed the process?…. Am I flogging a dead horse?

By: j. jashon

j. jashon — Tue, 21 Jul 2009 19:30:40 +0000

I am a real estate agent.

After attempting to sell and list short sales I am realizing it is some kind of game – that the banks make more money by letting the houses go into foreclosure….especially the loans that had PMI (private mortgage insurance) which is foreclosure insurance (money) for the banks. I can’t prove it right now but I believe time will tell that short sales are just good public relations stunts for B of A (and now defunt Country Wide Home Loans) ;making it seem like they are willing to help struggling sellers.

With my current listing, we have had a pre-qualified buyer who has hung in there for 4 1/2 months. He offered fair market value! And still no answer. R E A L L Y B of A.

Many agents will not deal with short sales anymore. Who wants to work really hard with no compensation and see sellers’ and buyers’ hopes dashed? Not me.

By: freenancee

freenancee — Tue, 05 May 2009 03:50:32 +0000

5/04/09 I just spent 90 days attempting to purchase a BoA short sale in IL/one mortgage. I wrote an offer of 112000.00 on a property that was built and sold for 184000.00 in 2007. There are at least 4 other similar properties on the same two blocks listed in the same price range, either short sales or bank-owned. I was through underwriting and approved by my lender before I bid. I increased my offer to 113000.00 on BoAs request and offered to pay 3000.00+ in back association fees in cash. All was good, all approved verbally and one written approval came in. PMI requested the seller sign an unsecured note for an amount of the shortfall. Seller agreed verbally to the note. Note papers came in to be signed, PMI increased the amount of their portion of the note on the paperwork without notice and BoA added in their request for shortfall payback also. Negotiations were difficult with a language barrier, from what I was told. Negotiations broke down, as of course this seller would be up to date with mortgage payments if there was any money to do that. The seller has nothing, or this property would not be in pre-foreclosure. I gave BoA 24 hours to accept my offer and figure out what they needed to do after one last 2 week extension on the contract expired. Needless to say, the seller also canceled the contract on the same day, property is off the market. Now BoA will have to wait until a future foreclosure date, as of today the property is not listed on the auction list through July 09. Nice.

I did not submit an unreasonable bid with what is selling in the neighborhood. BoA is asking bankrupt people for funds they don’t have. BoA disrespects our tax funding. BoA disrespects my solid offer, I am the one with the money, I am the one with the approved loan and I am the one that was willing to buy a property that could very easily continue to fall in price.

BoA will get much less at auction. The seller will continue to live in the property as long as possible without making payments. Late association fees will continue to increase. BoA will have to cover those association fees at foreclosure, I would have paid them. BoA disrespects my offer and my ability to buy a property at this time. BoA expects notes to be signed by sellers for shortfalls that are covered by PMI, and by sellers that don’t have the ability to pay back a note such as this at this time.

Why would the seller sign? Obviously their credit rating is already ruined.

Nice, BoA, nice.

I have bid on another property, there are non BoA properties selling in the area, many, many short sales on the books. I bid on a bank-owned property, as I should have the first time.