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FHA Short Sale with Bank of America - Problems & Changes

By
Real Estate Agent with JP & Associates Realtors 586143

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?

 

 

Winston Heverly
Coldwell Banker Access Realty - South Macon, GA
GRI, ABR, SFR, CDPE, CIAS, PA

What can one say that hasn't been said already. As I side note who did you say should be running your healthcare. getting back to your short-sale. I was very close to situation, what saved me was a quick sale or offfer 12 hours, i had two upon listing it. We closed recently 13k over list and he got his $3000 HAFA benefit.

Aug 02, 2012 02:20 PM
David Spencer
Keller Williams Northland - Kansas City, MO
Show Me real estate in Kansas City

I would be interested in the final outcome.

Aug 02, 2012 02:29 PM
Carol Pease
JP & Associates Realtors - Bastrop, TX
CRS, Broker-Associate 512-721-6320

Winston:

We have an offer.  Bank of America has had it for 45 days and it is just sitting there.  It's a great offer.  I just can't understand what is going on here.  It would be different if we didn't have a buyer waiting patiently for this house.

 

Aug 02, 2012 02:30 PM
April Swenson
Coldwell Banker Ocean Shores Brokers - Ocean Shores, WA
CRS and Managing Broker - Ocean Shores Real Estate

Oh my goodness, what a horrible story/experience.  BoA is not acting intelligently.  They will lose more money in a foreclosure.  If they are going to foreclose, then maybe your sellers can get cash for keys.  That is the only light out of this mess.  I feel sorry for you, the sellers and the buyers.  I really hope a miracle can happen and they would stop the foreclosure and let this offer proceed.

I am the buyer's agent for a couple for a BoA FHA short sale.  But BoA is extending the appraisal date.  But that file is already open.  The problem with your deal is that they have not even opened the file.

Aug 02, 2012 03:23 PM
Carol Pease
JP & Associates Realtors - Bastrop, TX
CRS, Broker-Associate 512-721-6320

David:

I'm anxious to see what happens here,  also.  I've tweeted @BofA_help to see if they pick it up.  In the morning I am calling their executive offices. 

 

Aug 02, 2012 03:31 PM
Carol Pease
JP & Associates Realtors - Bastrop, TX
CRS, Broker-Associate 512-721-6320

April:

I think there are changes in the works at BOA for FHA short sales.  They seem to be making it more and more difficult to get them done.  The OPEN FILE Genie is not working right now.  I'm still working this file and it will be a tragedy for this seller to have a foreclosure.  He has cooperated all along.  It was a lost job situation.  He couldn't get a loan modification because he wasn't working.  Now that he has a job,  he had to move in order to work. 

 

 

Aug 02, 2012 03:34 PM
Carol Pease
JP & Associates Realtors - Bastrop, TX
CRS, Broker-Associate 512-721-6320

I prevented the foreclosure and we are now in active short sale.  I have a negotiator, and the appraisal has been ordered.

 

 

Aug 07, 2012 02:48 AM
Anonymous
Tonia

We made an offer on a BOA shortsale(empty for 2+yrs and vandalized) in July 2014-got all they asked for then it was transferred to Selene- told 48-72hr turn time- well that turned into 30 days- then that turned into another 3 wks- the listing agent just notified me that she put in a ticket with HUD to get involved with SELENE to get something done- this home has to be completely rewired and a lot of other things that were done after the appraisal was done for BOA initially- I hope to hear fast we wanted to be in the house by Christmas.

Oct 03, 2014 04:35 AM
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