I'm a short sale agent, and a damn good one at that. I have handled over 700 distressed properties in my 17 year career. Right now I have a problem file that I would like to share with the Active Rain community. It may be a harbinger of things to come with Bank of America.
I have been trying to get an FHA file open since June 21, 2012 when it was imaged into the Bank of America system. For whatever reason I have not been able to get the file open even though they have all the documents necessary to make it happen. The foreclosure date was July 3, 2012 and one of the BOA twitter angels (Lorraina) helped me get it stopped at the very last moment. I thought I was home free, but not so!!! Even though I have escalated the file and called every day, I've been hitting a brick wall. I have escalated within the system, filed complaints and opened a case with HUD, but after 45 days still nothing. The financials have been updated for June and July. The short sale can't be opened because it is too close to the foreclosure date which is now August 7, 2012.
Last Thursday I was told by Bank of America that all FHA short sales will now be initiated in the Home Retention Department and no longer in the Short Sale Department. In order for one to be initiated the homeowner must complete the "waterfall" " which we have done. We've done whatever they have asked, but whoever pushes that magic FHA button isn't doing it. I'm in a Catch-22 situation. I can't get the foreclosure stopped because the short sale isn't active. The short sale isn't active because it it too close to the foreclosure date.
On Monday a kind customer service person took pity on me, read all the notes and told me that this should not be happening and she initiated a complaint in the system. It was responded t to by a senior analyst named Stephen Sass. He would not provide a phone number and responded via email even though I provided my contact information. The number listed at the end of his message for his supervisor was a bogus number in the IT department.
Hello, I am sorry but I am not able to call you at this time. This is currently the best way for me to speak with you. This property has not been initiated for a short sale at this time due to the foreclosure sale date of 8/07/2012. FHA does not allow us to initiate a short sale if the sale date is within a certain timeframe as I am told. I am sorry for the inconvenience. If you have any other questions I would be happy to help you.
I have attempted to file a ticket with the HUD service center on 2 occasions. The first time HUD connected me directly with the escalation department at Bank of America but it was the wrong escalation department. I made a second attempt and I now have someone assigned, but after 3 days she has not returned my phone calls.
HUD has certain guidelines and timelines the servicers are supposed to follow. They have 7 days to assign a negotiator, and then 10 days to do the appraisal. Their time doesn't start until they open the file. If they don't open the file then they don't have to perform. Is there a method to their madness here?
Bank of America is not allowing the homeowner to use the loss mitigation options that should be available to them. I'm now wondering if this is going to be the new Bank of America tactics. I wonder if they are going to deny FHA short sales because they are too close to the foreclosure date. I was told that they were following FHA servicer guidelines.
Isn't this what the settlement with the Attorneys General was all about? The servicers have a duty and obligation to offer alternatives to foreclosure. The homeowner has tried everything to get something done. Come on Bank of America, where is your heart?
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