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Bank of America Employees -- Do Not Apply

By Michael Jacobs

Industry Observer CalDRE #01165532

March 19, 2012 12:51 AM

Bank of America Employees -- Do Not Apply

This morning in my email inbox was our company weekly newsletter and one article caught my eye. As of March 13, 2012 there was an update that stated Bank of America Associates are prohibited from the purchase of distressed company assets including REOs, short sales and foreclosures. This is consistent with other large mortgage servicers and includes spouses, dependent children, domestic partners or any other person who derives his/her primary means of support from the associate.

So Realtors, another question to add to your list when interviewing buyers.....hmm, there still seems to be some questions ---- nothing about adult children of associates living on their own, parents of associates.

If you are a buyer working for Bank of America or another lending institution -- you will be asked for so be prepared.

Michael Jacobs is a Realtor who serves the Pasadena/San Gabriel Valley areas as well as the adjacent northeast foothill communities within the city of Los Angeles and can be reached at 818.516.4393 cell, michaeljacobs@coldwellbanker.com or find homes and so much more at:

www.camoves.com/michael.jacobs

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Suzanne McLaughlin

Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN

Sabinske & Associates, Realtor

Sadly, I learned this the hard way last spring. And, I went to Bank of America and asked them to explain why. They really didn't have a logical answer. I would think that if the person is employed by Bank of America, they would be better off selling the distressed property to their own employee(s). But, I guess not.

Mar 19, 2012 04:01 AM

Don Sabinske

Don Sabinske, Sabinske & Associates Inc. - Zimmerman, MN

Sabinske & Associates Inc.

I am with Suzanne on this one....although there might be a perceived conflict of interest and the arms length transaction comes into play.

Mar 19, 2012 05:53 AM

Michael Jacobs

Pasadena, CA

Pasadena And Southern California 818.516.4393

Suzanne -- sorry to hear about that. I assumed it had been a issue longer than this past week's announcement and it looks that way from your experience.

Don -- I could see how many would feel that if a BoA employee was the "winning bid" some might feel there was some insider information.

Mar 19, 2012 06:30 AM

Belinda Spillman

Aspen Lane Real Estate Colorful Colorado - Aurora, CO

Colorado Living!

Michael, I totally agree with their philosophy. I think it would raise too many questions about whether or not the employee was getting a special deal and whether or not the property was sufficiently marketed to the general public.

Mar 19, 2012 09:35 AM

John McCormack, CRS

Albuquerque Homes Realty - Albuquerque, NM

Honesty, Integrity, Results, Experienced. HIRE Me!

Sounds to me like B of A isn't even confident in there own employees. I think speak volumes and it's not a good speech. I just got off the phone with a B of A employee loan officer. This guy hates his job but retires soon. He is the poor soul that BofA gets to do all the stupid prequalifying on their bank owned stuff even though the buyer has no plans of using BofA. Just another one of their useless guidelines. And that comes from the BofA employee. Who needs that garbage? Not I.

Mar 19, 2012 09:58 AM

Belinda -- I agree. There's enough suspicion regarding distressed properties so anything that enhances the arm's length distance is a good thing.

John -- I think BoA has issues as does any corporation but I don't think this situation has anything to do with confidence in their associates. On another issue, it is ludicrous for a buyer to go through the pre-approval process with a lender who owns the property --- it's such a time waster whether it's Bank of America, Chase ---

Mar 19, 2012 11:54 AM

Sharon Alters

Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL

Realtor - Homes for Sale Fleming Island FL

Michael, Wells Fargo has the same policy - both for their employees and also for listing agents and their families as well. I think it's because it could be perceived as a conflict of interest. They know details and values about those properties in advance of the public.

Sharon

Mar 20, 2012 12:38 PM

Michelle Gibson

Hansen Real Estate Group Inc. - Wellington, FL

REALTOR

Michael - I agree with Belinda, unfortunately there are a lot of dishonest people in this world.

Mar 21, 2012 01:47 AM

Sharon -- I remember a story that alleged a Wells Fargo V-P who moved into a beachfront house in Malibu that was a short sale and refused to have it available to be shown. No one needs that kind of publicity or employee!

Michelle -- Unfortunately there are -- that Belinda is pretty smart, isn't she?

Mar 21, 2012 05:21 AM

Endre Barath, Jr.

Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA

Realtor - Los Angeles Home Sales 310.486.1002

Michael I saw this as well and if there is an REO listing from B of A it is in the private remarks..... sometimes we go from one extreme to the other, just my thoughts if we walk in the straight and narrow middle we would not need to go to these extremes....

Mar 22, 2012 10:38 AM

CA COASTAL ESTATES Lauren Selinsky Perez CRS

California Coastal Estates - Aliso Viejo, CA

"Your Real Estate Broker" #oclauren

WOW~ but I do get it! As a few mentioned... They may think they are playing favortism due to their employer. Just give anyone a reason to file a law suit!

Mar 27, 2012 04:38 PM

Endre -- very true.

Lauren -- it's definitely understandable.

Mar 27, 2012 11:17 PM

Jim Frimmer

HomeSmart Realty West - San Diego, CA

Realtor & CDPE, Mission Valley specialist

I remember a few years ago when that BofA executive moved the family into a foreclosed home somewhere in a nice area of Los Angeles. I think s/he then took the foreclosed home off the books so the family could continue living there free. At least that's what I remember, and I never saw a follow-up story.

Apr 23, 2012 08:47 AM

Hi Jim -- there may have been a Bank of America executive too but I recall reading of a Wells Fargo exec who moved into a Malibu short sale listing. She did not allow showings and the home eventually was foreclosed. As I recall, she is no longer a WF employee.

Apr 23, 2012 11:09 AM

Bank of America Employees -- Do Not Apply

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