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Bank of America, I had high hopes for you, but they're waning.

By
Real Estate Broker/Owner with Cornerstone Business Group Inc 0225086119

Bank of America, I had high hopes for you, but they're waning. After a number of healthy phone calls from BOA employees who have read my blogs, I was reasonably confident that BOA might be the one bank that had the short sale process figured out. I may have been premature in that assessment.

Against my better judgment, I took a short sale. I'm sure this will be my last one, but anyway, it ended up being with Bank of America. Today, the negotiator called while I was driving. When he tried to verify my identity I could only give him every piece of information about the property, borrower and me, but I didn't have the loan number. I was driving after all. He informed me that he couldn't speak with me because I couldn't verify my identity with the loan number.

That seemed a bit odd since he called me (on my cell phone). I answered with the name on the BOA agent acceptance form. I could answer every question except the loan number. That was the end of that call.

Ten minutes later, I was in my office and called the negotiator back. He wasn't available, but I was able to talk to his manager. She was great, but after a long call we weren't any closer to a sale than we were before.

It seems that BOA wants a preliminary HUD in order to accept a contract. No problem. We can do that. The only problem is that there are certain details we can't provide until the bank accepts an offer and gives us a closing date. There are numerous line items that will fluctuate one way or the other based upon the closing dated set by the bank. The bank won't accept the HUD without the numbers, and the numbers can't be created without the bank setting a closing date. 

So, here we are again. Round and round and round with no resolution. It makes me wonder how much the bank really wants to close these short sales. This is a full price cash offer with no contingencies, and the buyer can close at any time the bank sets a date. The bank can't set a date until it accepts the offer, and it can't accept the offer with a completed HUD. A HUD can't be completed until the bank gives it's approval for the offer.Bank of America, I had high hopes for you, but they're waning.

 

Comments (15)

Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

Hey Mike - Don't feel bad I get that just when I am forced to go inside the bank. As they are my current financial institution. It is hard to make the change when so many things are tied to the account but that may change/ Sorry you have to deal with the crazies.

Jan 08, 2014 09:11 AM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Hello Mike,

I have one word for you...RUN.  Actually I have two words...RUN, FAST!

ps - request a preliminary HUD from the Title company (or attorney, depending on how the closing is handled) and use a closing date 30 days forward.  That's worked for me on past BOA files.

Jan 08, 2014 11:35 AM
Andrea Bedard
Thompson Company, REALTORS® 240.593.2860 - Silver Spring, MD
Fluent in Real Estate & German, M.A. ABR ASP CIPS

If it weren't so disappointing, it would be comical, Mike. They are aware that all numbers provided need to be within a margin at settlement, right? No, it doesn't sound like they are. 

Would you still make the proposed settlement date in the contract or was that supposed to happen last year (or the year before)? If yes, just use that one, if not, pick one 60 days from now (I'm being optimistic). At least you can give them the preliminary HUD and then pray for the best.  

And don't forget to memorize the loan number before you call! 

Jan 08, 2014 11:37 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Sorry Mike,  I let others handle short sales, they just are not worth me getting gray hair over.

Jan 08, 2014 11:59 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

So frustrating.  It's a wait for it and then it doesn't come through.  And at the final countdown, no closing date, no HUD because of that, then no closing.  Hope it comes together for you!

Jan 08, 2014 01:42 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

So frustrating.  It's a wait for it and then it doesn't come through.  And at the final countdown, no closing date, no HUD because of that, then no closing.  Hope it comes together for you!

Jan 08, 2014 01:42 PM
Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

Mike,

I think banks enjoy seeing Realtors running around in circles. There can't be a rational reason for this insanity.

Rich

Jan 08, 2014 02:51 PM
James Dray
Fathom Realty - Bentonville, AR

And that is why I avoid short sales.  By now my temper would have gotten the best of me and the words that would come out of my mouth would have had me censored. 

Jan 08, 2014 07:22 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

I hear you, Jeff.

Lisa and Andrea, that's pretty much what we're doing. Thanks for the advice.

Will, this will be my last one. There are too many good sales out there to have to deal with banks like this.

I'm hopeful, Jan.

If that's true, Richard, they've found a great source of repeat funnies.

James, I do spend a lot of time biting my tongue.

Jan 08, 2014 09:13 PM
Dianne Goode
Raleigh Cary Realty - Raleigh, NC
Realtor/Broker

I feel your pain.  Here's my take on the preliminary HUD: It's not the final HUD. So have the attorney put in the numbers you know (agent commission, closing costs requested by buyer, prorated taxes and HOA, doc stamps required by state, etc.).  BOA just want to see what their bottom line looks like.  If they want to add charges not shown on the preliminary HUD, they can have the attorney make the changes.

Jan 08, 2014 09:24 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

That's pretty much where it went, Dianne. There were certain numbers they wanted that we just can't give them right now, but I guess we'll come up with something. I figured since it was a preliminary HUD that "close" would be good enough, but they didn't see it that way.

Jan 08, 2014 09:28 PM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Good luck Mike, I hope it works out...the last one I did with BOA was ignored and shuffled by them for so long (three separate offers) that their foreclosure department finally foreclosed.  Then, they sold it more than six months later at a lower price than what had been presented...it's insane.

Jan 09, 2014 08:05 AM
Jill Sackler
Charles Rutenberg Realty Inc. 516-575-7500 - Long Beach, NY
LI South Shore Real Estate - Broker Associate

It's that kind of circular thinking that defines government and other large institutions.

Jan 09, 2014 09:24 PM
Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Mike, if they would use just an ounce of common sense, this wouldn't be so hard. It's like they're on another planet.

Jan 10, 2014 06:53 AM
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

The definition of insanity comes to mind Michael.

Jan 11, 2014 07:52 PM