Short Sale packages may be different from bank to bank, negotiator to negotiator. Having completed short sale seminars, listed and sold short sales, worked with two separate short sale negotiation companies, it appeared evident that
HARDSHIP conditions include, but are not limited to:
- Unemployment
- Reduced income
- Divorce
- Separation
- Medical bills
- Too much debt
- Death of spouse
- Mortgage payment increases
- Business failure
- Job relocation
- Illness
- Damage to property
- Military service
- Incarceration
BANK OF AMERICA --- difficult if not impossible
Bank of America is getting, or probably already has the reputation of being one of the slowest and most difficult banks to deal with when it comes to short sales. On Active Rain alone, there have been enough angst and anguish documented about this challenge. Realty Times says:
Bank of America had been among the least cooperative of all banks in agreeing to short sale payoff terms, according to industry critics....
Now the bank has adopted what spokesman Terry Francisco told Realty Times is "a less arbitrary, more rational" policy. "What we're saying (to short sale proposals) is -- give us an opportunity to participate and gain at least some of the savings" that will go to the first lien holder -- the primary lender on the property -- by avoiding the high expenses and losses of a foreclosure, according to Francisco...
But not all short sale market experts are convinced that's the case. Raffi Tal, CEO of Los Angeles-based I-Short Sale, Inc., one of the largest players in the field, says Bank of America's new policy "will still jeopardize" many short sales that involve its second liens.
In spite of constant follow ups that included an email to the CEO, we didn't get a response for two months. But they can't wait a few days for us gather the new information they requested without threatening that they will close the file?
It is incredulous that after having submitted a package in June, they didn't open the file until September, and then they requeted new documentation since the seller's financials (bank statements, pay stubs) are now outdated information. Then the negotiator gives unreasonable deadlines. Two or three times, the negotiator writes or calls Friday morning, and then expects a response by 3 pm that same day or they will close the file.
My seller is in severe financial straits. She bought a condo for members of her family, who, by a series of extremely bad luck, died one after the other within the two years immediately after she bought it.
DEATH AND FUNERALS --- not a hardship
We explained in a hardship letter that not only can't the seller rent out the condo (HOA rules), but she also had to pay for four funerals in a row.
To which the BOA negotiator named Delaney said "the funeral expense isn't a long term hardship and shouldn't be the reason why the customer can no longer afford to pay the mortgage." Geez! The funeral expenses which average to $6,000 each, or $24,000 total, were charged on a credit card that the seller is still paying for.
Too stunned to think. Looking for compassion and understanding from this loan negotiator. No wonder the sculpture in front of the former Bank of America headquarters in San Francisco is known as the banker's heart --- it's black, cold and hard as stone!
;)
;)
;)
Wow, it is incredible how slowly loan negotiators are moving. And to be so dense as to consider funeral expenses of that caliber unworthy of the hardship title!
They certainly are shooting themselves in the foot. I imagine if they don't approve it the property will just go into foreclosure and they will lose even more money down the line.