Short Sale Lenders are Seizing Bank Accounts!

I've heard that this was possible.  Thanks for pointing this out, we'll need to talk to our short sale selers about this.

They have all those poor executives that need their bonuses.

Broker Bryant, Thanks for the heads up.  Why doesn't this surprise me, especially with B of A? 

The root of all evil...the almighty dollar. I think I would have already pulled my money out if I had a short sale going on, but who would have thought the banks would actually do this?

Nathan,

If people read the contracts on their checking and savings accounts they'd know this was possible.

"I think I would have already pulled my money out if I had a short sale going on"  Most do, most people are honorable and try to pay before defaulting. This is the reason we don't see more of this, followed closely by the mortgage servicer not owning the note.

It keeps coming back to people thinking their entitled to the banks money when the truth is the bank is entitled to the return of their money! Short sales are a great tool for the bank and a blessing for the debtors that qualify. 

Bill 

This does not really surprise me. My son had the same thing happen with a car he financed though BofA. Lesson learned for him at a very young age! Good information to share with consumers that are in situations with their mortgages.

Bryant,

Not your mortgages or even your notes! It's your checking, savings and any other deposit accounts with the same company that owns the mortgage in default,

Bill

As soon as I started reading I thought BoA and yep there is was... ~Rita

I'm glad that you wrote this post. I have actually had a few clients that have experienced this--but not with B of A. It is more prevalent (at least in California) with the local credit unions. Moral: Don't potty where you eat. (Pardon the less than appropriate language in the last sentence.)

You are a terrific individual.  This is crucial to several of our sellers.  I so appreciate it.  I had not caught this on Sally's blog. 

Great info, thanks for taking the time to post to us all!

Holy Crap.

And Again, I Wonder.....When the hell are we going to see some of these lenders hauled off to jail??

This is so important to know.  Hopefully we can help this from happening to other short sellers by getting the word out.  Thanks for sharing this warning. 

BB - Great info indeed. But, I am confused about how anybody can even expect to claim a financial hardship and ask the bank to authorize a short sale when they have the assets to offset some of the deficit. Maybe you can clarify this. Of, course I always assumed the bank would want the homeowner to contribute what they can, and I would think it might even be the honorable thing to do.  Kind of sad for the homeowner who is left with nothing, but kind of the right thing for anybody to expect given that they're asking for the banks to take a loss and be completely in the red. I am not trying to be unsympathetic, but isn't a homewoner who is not expecting to make a monetary contribution towards the short sale when they have the money in a sense anticipating some form of charity?I'm just not sure I know how to feel about this situation.

Bryant, this is so important to let people know about. We heard about it last summer in time to help some folks move their buckaroos to another bank.

Great information Bryant.  I hope this news gets out to all the short sellers that are currently out there.