BOA does it Again! Ridiculous request on another FHA Short Sale!

By
Real Estate Broker/Owner with Heart Realty Group, Inc.. IL-471.002355

The powers that be at Bank of America must spend their time trying to figure out what other wrench they can throw into the FHA Short Sale process.  After almost a year of dealing with one of my FHA Short Sales I now have another negotiator that appeared to have a common sense and let's get this done attitude.

Unfortunately, when I opened this morning's "secure email message" from BOA I almost blew an artery.  Besides insisting that they would not pay a $3 mandatory policy fee in my state which I eventually won, they now want both realtors to sign the PURCHASE AGREEMENT!

Yes, I need to sign the contract between the buyer and the seller because BOA says so!  Then to make it even more interesting they also want the individual realtors name on the Hud-1 commission section.  Of course, since the HUd-1 is used to disburse funds I ams sure my broker and State of IL DFPR would love the fact that my name is on the commission check.

 

Hanging on Wall

I tried to explain why we could not comply with the request.  I informed the negotiator that in IL all commissions must be paid to the Brokerage firm that sponsors us per State Law.  She says it does not matter BOA needs to have our name on the HUD-1.

My local board said no on signing the contract, and is forwarding it to the State Association.  I have sent CFPB an inquiry asking for clarification of the RESPA rules regarding individual names as it pertains to real estate commissions.  I have also sent an email to the supervisor of the negotiator but that response will have to wait since he is out of the office.

Anyone else get this request from Bank of America on their FHA Short Sale?

3/14/2013 - Here is the latest update to this story...can approval letter be close?

Posted by

Evelyn Santiago

Managing Broker - 630-251-0059

Heart Realty Group, Inc.

We are Passionate About Real Estate!

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Bryan Robertson
Intero Real Estate - Los Altos, CA
Broker, Author, Speaker

I've heard of this ploy to get agents into the contract.  I think it should be a felony to even ask and BOA should be fined for trying.

Mar 12, 2013 08:40 AM #1
Rainmaker
276,343
Evelyn Santiago, Managing Broker Heart Realty Group, Inc.
Heart Realty Group, Inc.. - Oswego, IL
Passionate About Real Estate & Our Clients!

You would think some of the high level NAR employees would be interested in finding out where these requests are coming from.  It's bad enough we have to add additional verbiage to our local contracts which we have had to get attorneys do an addendum but this is just one of many requests that makes it obvious that the banks have no idea how real estate transactions are actually done.

 

Thanks for the comment!

Mar 12, 2013 08:43 AM #2
Rainmaker
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Katrina Rockel
The Rockel Group - Fayetteville, NC

Evelyn, I have not had that request yet, but we one of my BOA short sales is on it's 3 time accepting the short sale and then denying it after we have made it almost all the way to closing on an approved short sale. This set of negotiators has a whole new list of forms they want signed. Very frustrating and I would not sign the contract in NC if they required it. Good Luck!

Mar 12, 2013 08:44 AM #3
Rainmaker
570,845
Kathy Stoltman
Rockwood Realty - Ventura, CA
Ventura County Real Estate Consultant 805-746-1793

And we thought BOA was speeding this short sale process up!? Hang in there.

Mar 12, 2013 09:10 AM #4
Rainmaker
276,343
Evelyn Santiago, Managing Broker Heart Realty Group, Inc.
Heart Realty Group, Inc.. - Oswego, IL
Passionate About Real Estate & Our Clients!
Due to my bloggin on various short sale sites I received a call from someone from BOA and they escalated the file. No need to sign the purchase contract in IL and a compromise on the agents names on the Hud-1 (names appear in parenthesis). If we don't stand up to some of the banks unreasonable requests we will continue to get them. Speak up, blog, complain to the right federal, state departments, contact your state representatives, etc. Don't be afraid to speak up for yourself and your clients!
Mar 18, 2013 06:20 AM #5
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Evelyn Santiago, Managing Broker Heart Realty Group, Inc.

Passionate About Real Estate & Our Clients!
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