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My Travails with a Bank of America Short Sale

By
Real Estate Agent with Mapleridge Realty, CT 203-206-0754 REB.0759001

My Travails with a Bank of America Short Sale

I reached out to my ActiveRain friends yesterday for some support in my battle with Bank of America. My post was the experience I was having with a short sighted organization that promises one thing and then just lies.

As I was having dinner last night, a call came in. It was from a social media representative for Bank of America. At the very least the bank was listening, but so far I don't know if they are hearing. I was asked to return the call to another social media person, which I did; got voice mail, (what a surprise) and have heard nothing from that sphere.

Late last night, I did call the Bank of America number I was given and in talking to the representative, was told that there was no postponement of the foreclosure in the file.

I was given another number to call today that was supposed to be direct to the foreclosure department. The operator that answered identified the facility as the President's office (imagine that).

I gave my credentials and was put over to a foreclosure specialist. I was told that there was no postponement in the system, but was given a new case file and told that I should be hearing back from someone later today, which means I call back early this afternoon.

I have let my client, lawyer, and buyer know what is happening, but until I hear back from the bank, we are presuming the worst, and justifiably so.  In the meantime, my contact at Dignified Transition Solutions did call to see if I was following up on the leads in my portal, as if that were a priority.

In talking with a qualified and well respected source from the ActiveRain roster yesterday, we surmised that no bank really wants to conclude a short sale when there is an insurance policy in place (recall those heavy PMI charges on each month's mortgage statement). How fortunate for the bank to have a owner default, and maybe settle 30% of the short sales as a show of good faith, and collect the differential on the foreclosures that had the insurance, sounds like a good deal for a bank.

Nothing new beyond that, but if not for the power of this platform, I would not have gotten that far, which in itself speaks volumes to the strength of this ActiveRain lobby to support a justifiable and righteous cause.

UPDATE AT 3:30 pm 6/27/2103

I received a call from a special assistant to the President at Bank of America. Michelle pointed out the rules regarding postponements that can only be granted if a letter of acceptance had already been issued on the short sale.

The fact that the servicer screwed up the file means nothing, the rules are the rules. My client has been foreclosed, the buyer can probably pick up the house for $20,000 cheaper in a few short months after it has been allowed to get into dis-repair and vandalized.

Life goes on for B of A, and for the rest of us, and this battle is done!

 

My Travails with a Bank of America Short Sale

 

Posted by

 

Edward (Ed) Silva
Broker Associate

Serving Central Connecticut Sellers and Buyers

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Pat & Wayne Harriman
Harriman Real Estate, LLC (203) 672-4499 - Wallingford, CT
Broker/Owners, Wallingford CT Real Estate

"The rules are the rules."

Those five simple words summarize the problem, not only with BoA, but with business in general. It shows just how little regard BoA gives to their clients, and how rigid and closed-minded they are to providing whatever passes for customer service in their world. A truly empowered person in a position of authority like Michelle would have been able to see the big picture and take action to ensure that the result was a win-win for all concerned, not hide behind rules written by someone of the same mindset as Henry Potter from "It's a Wonderful Life". Hopefully someday BoA will be taken to task for the crap they've pulled over the years, but I won't hold my breath waiting. My condolences to your sellers.

Jun 28, 2013 01:37 AM
Michael J. O'Connor
Diamond Ridge Realty - Corona, CA
Eastvale - 951-847-4883

Seems like nothing changes.  I don't know why there can't be some reasonable solution to the problem when there is mortgage insurance involved.  A few years back, a mortgage insurance company was demanding that my short-sellers sign a promissory note for $50K against the condo that was at the time only worth $125K.  At the end of the day, the condo was sold for significantly less when it was a bank-owned property.  "Bank logic" isn't logical.

Jun 28, 2013 01:41 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Ed if there is one thing I have learned in the last few years is that life is unfair and big banks suck.  Things will come to a head soon.  I have stopped banking with big banks.

Jun 28, 2013 02:25 AM
Kimo Jarrett
Cyber Properties - Huntington Beach, CA
Pro Lifestyle Solutions

Without knowing all the details, it would be inappropriate for anybody to judge BofA, however, I learned that the most important factor in foreclosure or SS situations is knowing who the lenders are, how many of them and if it has PMI. These are important to know because it should be a clue as to whether your engagement will be successful or not. 

Jun 28, 2013 02:30 AM
Jeff Stevens
Berkshire Hathaway HomeServices New Mexico Properties - Las Cruces, NM
Jeff Stevens, Associate Broker/REALTOR

Ed, this is so typical of BOA. Trying to talk to ANYONE at this bank is next to impossible and even if you do get someone on the phone they are like talking to robots:

SORRY. WE ONLY KNOW WHAT'S ON OUR SCRIPT. IF IT'S NOT ON OUR SCRIPT, WE CAN'T HELP YOU. SORRY. THIS IS NOT ON OUR SCRIPT. DOES NOT COMPUTE. DANGER WILL ROBINSON! SYSTEM OVERLOAD! 

Jun 28, 2013 02:42 AM
Mary Lawler
Realty Executives Advantage - San Diego, CA
Your Community Connection

I'm really sorry that it turned out this way, Ed.  It was probably in the

 

I posted yesterday about naming names of the folks in charge of making decisions and pulling back the curtain of anonymity at these "Too Big to Care" lenders. 

 

Can you tell us who the "social media representatives" were?  Who was your telephone rep?  What is the name of the President whose office you were directed to? 

I don't know if you feel comfortable divulging all that, but it's got to start somewhere... 

It's time to go up the food-chain to expose why B of A stalls, obfuscates, passes the buck and ultimately forecloses on families.  They can make more money foreclosing than they can on a short sale.  Plain and simple business strategy. 

Here's the new Bof A motto:  "Even if foreclosure makes a family homeless, it makes us money!!!"

 

 

Jun 28, 2013 03:30 AM
Theresa Akin
CORPUS CHRISTI REALTY GROUP - Corpus Christi, TX

SORRY! THE FILE IS IN THIS TOWN, STATE AND THE LOAN OFFICER IS ON LEAVE AND WE DON'T HAVE ACCESS TO THEIR FILE BECAUSE THEY HAVE THE KEY! OH, I'M SORRY NOT SURE WHEN HE/SHE WILL GET BACK. HIS/HER CONTACT INFORMATION HAS CHANGED AND WE DON'T HAVE IT. WE ARE UNABLE TO GIVE IT OUT. JUST SEND US THE CLIENTS PAPERWORK OF 200+ PAGES AND WE WILL GET BACK WITH YOU OVER THE HOLIDAY(S).  OH WE'RE NOT SURE WHICH HOLIDAY.

That is the kind of crap my client an I had to put up with last year with BOA. Again I repeat myself. BOA will squeeze the life out of you unless someone hits them square in the head (REALLY HARD).

Jun 28, 2013 03:42 AM
Travis "the SOLD man" Parker; Broker/Owner
Travis Realty - Enterprise, AL
email: Travis@theSOLDman.me / cell: 334-494-7846

dealing with two Short Sales myself and as you point out, must be nice to have a cushy "Insurance Policy" to fall back on, no matter that there is a better and much quicker alternative....

Jun 28, 2013 03:51 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Have one of those in place right now and been working this file since February.  We may be following in your exact footsteps.  Thanks for the read!

Jun 28, 2013 05:31 AM
Paddy Deighan MBA JD PhD
http://www.medicalandspaconsulting.com - Vail, CO
Paddy Deighan J.D. Ph.D

I just spent a VERY unpleasant day in Court ...Wells FArgo attorneys lied and told the judge that there was no short sale in process. I HAVE the proof!!!! I am going to write a blog about it later

Jun 28, 2013 06:24 AM
Momentum Realty
North Orange County CA Real Estate Specialists - Yorba Linda, CA
Orange County CA Real Estate Agent

Hi Ed,

Sounds like they blew a lot of hot air at you and didn't fix anything- SO typical of Bank of America!! I forgot to mention, in my comment yesterday, that you should have your seller contact the law firm of Hagens, Berman, Sobol, Shapiro. They have offices throughout the U.S., and have several B of A lawsuits going at the moment. One is a class action suit that "alleges" that Bank of America purposely gives borrowers the run around and forces them into foreclosure. Former B of A employees have come forward with inside information and claim that employees were even paid bonuses, for performing 10 or more foreclosures in one month, even when the homeowners qualified for a mod. This "alleged" evidence finally blows the lid off of their facade that they're trying to help borrowers! It's all a big game for B of A, while homeowners lose everything that they've worked for!!

Again, so sorry for your seller and how much time and effort you've put in.

Gina

Jun 28, 2013 07:41 AM
Sylvia Jonathan
Coldwell Banker Platinum Properties - Irvine, CA
Broker Associate, SFR

I take real pleasure in steering clients away from Bank of America. Their loan pre-approvals are useless pieces of paper and most listing agents who have experience with buyer's loans on their transactions will put a big heavy black mark against that outfit. That's just for their new loan processing.

Their subcontractor vendors such as Diversified Solutions, who shuffle short sale files for BoA, are sometimes incompetent and at times frustrated themselves at not getting what THEY need from BAC in order to move the file forward. Not being able to upload a short sale to Equator for 4 weeks due to "technical difficulties" is just one such example.

The call from the social media monitors CLEARLY means nothing. It's just a pretense of "we are listening to you". BAC does and will not accept responsibility for the mishandling of files by their hired hands.

Tell your sellers we feel for them!

Jun 28, 2013 07:45 AM
Jeanne Dufort
Coldwell Banker Lake Country - Madison, GA
Madison and Lake Oconee GA

One reason I ALWAYS encourage my buyers to do business with our wonderful local lenders.  We surely can vote with our new business choices at least.

Jun 28, 2013 08:59 AM
Annette Thor
Connecticut Homes and Commercial Fairfield Cty,CT reinct.com - Westport, CT
Residential & Commercial Real Estate Broker in CT

Sorry to hear about that foul outcome Ed. Its hard not to be cynical these days.

Jun 28, 2013 01:16 PM
Al & Peggy Cunningham, Brokers
RE/MAX West Realty Inc., Brokerage - Brampton, ON
Our Family Wants To Help Your Family!

What a sad, sad, sad, sad story Ed. Your poor clients. Too think this all could have been avoided with competent people handling the process at Bank of America.  No, life (business life)  should not go on for those that dropped the ball and affected so many people. This just isn't right!

Jun 28, 2013 11:46 PM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I've thought all along that the reason you agents have such a terrible time with short sales is that the banks see more money for themselves through foreclosure. It LOOKS like they're losing when they sell the house for far less later on - but we don't know how much money they're collecting from PMI or how much they're collecting from other sources (such as the taxpayers who wouldn't pay it if we knew about it).

Anyone who believes that the banks care about their customers is living in fantasy land. They care about their own jobs - and about their bonuses. 

Any time company gets so big that the buck doesn't stop anywhere there's bound to be trouble. No one has to take responsibility. 

So sad... 

Jun 29, 2013 05:40 AM
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Ed.  Waiting for the BoA to change is an exercise in futility.

Jun 29, 2013 09:25 PM
Nancy Strabel
Keller Williams Realty Consultants - Alpharetta, GA

During the five  months we have been working a BOA short sale the servicer, Service Link, has closed the file two times. Once by "accident" and the second time because there was a middle initial missing on one of a hundred plus pages! No possibility here that they would contact us to just have the initial inserted.  That, of course, both times caused the file to back up in their system.  More time wasted.  Now Service Link finally have an approval ready but will not release it to BOA because they are arguing with them over BOA potentially releasing the file to Nations Star for processing. That means they won't get PAID for all the work they did on the file.  We heard this argument between a BOA supervisor and a Service Link supervisor during a conference call we made to get this resolved.

Yesterday the file was sent to Nation Star.  Service Link is not getting paid for the 5 months they spend NOT doing their job. BOA also just set a foreclosure date of August.

Oh, and by the way - the BOA mortgage is being paid in FULL! They are only asked to forgive some penalties and late payment fees.  It is the second that is the short sale and they have already agreed to a settlement!!!!!

Jun 29, 2013 11:40 PM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

These whole system they created on dealing with short sales does not work. It is terrible. Last week we got an approval on a BofA short sale( after 3 months, everything was almost finished). We needed to responce in 3 calendar days that seller and buyer accepts this approval. Believe it on not: on Saturday, the Equitor was down, we were tied to a computer the whole day checking if we can log in......after 20 emails, 20 calls and finally being able to log in on Monday~ we could not believe what happened: our short sale was wiped out from the system.....After many calls we finally reached out to someone who was able to give us answers: they said 'it is gone! File is deleted......... yes, we know the system was down over weekend, but there is no way to restore the file. You must start all over' 

Jul 29, 2013 07:08 PM
Anonymous
Dorene
Crazy isn't it. My short sale for a house that isn't mine. It belonged to my deceased ex husband. I gave it to him in divorce. B of A hounding me for years while he lived there for free 7/2010 to Feb 2013. Trying to be a good person, went through all their processes, had a buyer for the last 5 months, everytime it was to close they came up with something else they needed. It wasn't fair to my realtor, I told them to foreclose , not my house. What incompetent financial institution. They could have had their money plus more. is the government paying them for foreclosing, and how long will that take, in the mean time they are actively updating my credit report . I just file a complaint with consumer affairs. Can't anyone do anything to stop these crooks
Apr 24, 2014 06:50 AM
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