So why is Bank Of America following in Countrywide's Horrible Short Sale Footprints?
Agents, we all remember Countrywide's slogan of "Nobody can do what Countrywide can" correct? To me, that is an interesting slogan considering the fact that they could potentially have had the WORST short sale processes that could have been dreamt up (Examples to follow). I could have organized a small team to assist me in not caring about their profits too. I can assure you my team would have been smaller and cost much less.
So why is it that after the takeover of Countrywide by Bank Of America, are their processes still just as bad? I assume that Bank Of America is trying to make their business profitable. I mean, it only makes sense right? I've been involved with several transactions in just the past few months that they've elected to give away more than $100,000. If I were a betting person, I'd bet that I'm not the only one out there that can say that. Why or how? It's simple. Bank Of America, formally Countrywide, has an extensive short sale department that has a sole job of reviewing incoming files for consideration of short sale and decide what is more profitable, take the short sale offer now, or let the home go all the way through the foreclosure process. After the foreclosure process the home is listed again for sale. The contacts at Bank of America are very clear over the phone, if they decide that they are not going to accept the short sale, they think they can sell the home for more after the foreclosure process. What a joke that seems to be with them.
Case in point: I had a listing in my local area that the owner had a mortgage balance of $216,000. When I first listed the home, I felt that it was worth about $190,000. We listed it for that and received an offer for $186,000. At the time CW stated their due diligence process (BPOs etc) to figure out if the offer that was presented would be an acceptable offer. Well time has slowly ticked by on this file. Countrywide decided that the offer of $186,000 was not an acceptable offer (They told me it was about $18,000 too low) and they were going to pass on it and closed the file. As time has passed on, the home condition has grown worse. The owner does not live there and is due for 22 payments currently. Much to anyone's surprise, there has been no sheriff's sale date set. I am currently working with an offer that is MUCH lower than that and you guessed it, Bank of America is now just sitting on it.
So that brings up the question, why does the Short Sale Department at Bank Of America not talk to the Asset Management Department (The REO area)? Good question. Chime in Bank of America. I'm sure the thousands of agents that are trying to work with you currently would love to know why you make this process so difficult!
Case Number Two: I represented a buyer who made an offer on a home for $169,000. Bank of America decided that $169,000 was not a good offer and let it go the entire way through the short sale process. According to them, they could make more money by offering it for sale themselves. (I wish I could make a buzzing sound while writing this because that couldn't be further from the truth). So, Bank of America decided to pay the attorney's to do all their work to take this home back to the REO status. Guess what it was listed for? $135,000 - and yep, my buyer got the house. I assume that after the attorney's fees they probably elected to lose $40,000 more. Oh, I almost forgot to mention, Bank Of America is going to 1099-C the owner for the lesser amount this year even though they turned down a much higher offer. After all the ridiculous decisions that Countrywide and now Bank Of America make, that seems to be the best one. I'm sure Uncle Sam would love to know that he's kicking this and every other homeowner while they're down through these poor practices.
HEY Bank Of America - IF YOU'RE GOING TO MAKE THOSE REDICULOUSLY POOR DECISIONS TIME AND TIME AGAIN, WHO ARE YOU PLANNING TO BE TAKEN OVER BY?
Joe Baker
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