Bank Of America Checks Credit to Approve Short-Sale

While speaking with Bank Of America today on one of my short-sales under review I learned some new information. 

The negotiator explained that the investor who will be approving the deal will be pulling my seller’s credit information to verify that the seller also stopped paying other creditors. 

If BofA determines that the seller has continued payments to everyone else they will likely request a promissary note or cash contribution before approving the short-sale according to this BofA employee. 

My belief is this is one more change to discourage people from attempting a short-sale.  People who are walking away with a job and still paying their other bills need to either plan on giving them a promisary note/cash contribution to accept the short-sale or plan on a foreclosure on their credit. 

Realtor’s who take these listings better get the facts upfront from the seller and make sure they are willing to make this contribution if requested by BofA.  I personally think that what BofA is doing should be illegal and prosecuted.  They have no right to pull a consumers credit without their authorization and providing a credit report has never been part of the short-sale package or disclosed previously.  Legally they have no recourse if the property is foreclosed upon and it normally is easy to demonstrate that BofA benefits from accepting a short-sale vs. foreclosure option. 

It basically amounts to extortion and bribery to require a seller make a contribution or accept a promisary note at the last moment after going through the process and trying to do a short-sale on non-recourse loans. 

This is yet one more example of how our government is no where to be found in assisting the public and these large banks are being allowed to do whatever they want.  Shame on Bank of America!