Follow up to Bank of America Subordination Problems...

By
Mortgage and Lending with Fairway Independent Mortgage

I wanted to write a follow up post to the one I wrote last month about Bank of America and their useless wonderful subordination department.  For those of you who read it, you remember my clients were forced to cancel their refinance (which saved them $300) because Bank of America would never respond on their subordination and finally denied it.  We have appealed the decision and here goes...

After fighting with Bank of America to reconsider, we finally got them allow me to write a "Benefits Letter" that outlined the potential savings and therefore lower Debt-to-income ratio for them as the 2nd lien holder.  They have sent us approval now to do the subordination, except we have to reduce the loan amount by $2000!  Now the clients are going to have to bring and extra $2000 to closing and as you can imagine they are not excited about it.

This whole ordeal has taken almost 2 months.  It has been a real nightmare to say the least.  So, even though this might end up with a happy ending (sort of) my advice to anyone that needs to subordinate a Bank of America 2nd mortgage... BEWARE!

Olan Carder
www.charlottemortgageonline.com

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Mortgage / Finance
Groups:
North Carolina Real Estate
Mortgages
Mortgage Planning Strategies
Realtors Needing the services of the Lending Powers
Tags:
bank of america
subordinations

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Anonymous
apartments in toronto

Thanks for provding such a informative post.

Aug 10, 2009 05:28 PM #2
Anonymous
apartments for rent toronto

Thanks for providing such great information.I am agree with your views.Had Amarican subordingtions system was good their would have not been the problem of Crises.

 

Regards

 

Have a great stay at <a href=" http//www.torontosuites.com">Condos Rental Toronto</a>

Aug 10, 2009 05:34 PM #3
Anonymous
LO

You're surprised at all?  Really? Really? BofA will do subordinations, i'm sure they limited your loan amount because you were financing in closing costs etc.  You've given no mention to what your CLTV was either, so this post doesn't really help anyone.  The simple fact is banks have every right to deny subordination agreements but they more often will if you can provide the borrower a good benefit, if you're shocked by any of this (or that BofA took two months to do ANYTHING) i would get out of the business if i where you.

Sep 01, 2010 03:45 AM #4
Rainer
35,048
Olan Carder
Fairway Independent Mortgage - Charlotte, NC

Dear "LO"

I think the fact that you seem to think poor service should be expected is disappointing, and since I am enjoying some of the best success of my career right now I think I will stick around for a while. 

But thanks for the comments... :)

Sep 01, 2010 04:05 AM #5
Anonymous
Loan Lady

OK, here is another email about the subordination department of bank of american. We sent the request for the subordination agreement to Bank of America on the 5th of November. Of course had to send a $150.00 check for them to process, Ok no problem I get it they need money to pay the staff to help with the processing of this. The process of getting the subordination was 10 business days from beginning to end. Of course on the 15th, mind you we have followed up everyday since we sent the thing to make sure that they received everything they needed, confired with the call center that they received it is in processing, so on the 15th the person calls our brokerage and says "you missed sending the 1008" so we faxed immediately, we called back the same day, mind you to the call center as the "subordination department is like the OZ from the wizard of oz and no one has access by phone or other wise to speak to them. They have no record of us sending the 1008, so 24 hours later we send it again, with the confirmation that it was sent on the 15th.  So from the 15th til today, no one can verify if they have received it. All we can be told is it takes 10 days for the thing to be processed. The borrowers have a great rate that is locked until tomorrow. We will extend it for another 30 days, which will cost us our money, but the customer will get a closing that saves them over $289.00. If anyone who works for Bank of America reads this, someone needs to work on your customer service department. Your inbound call center employees have all been pleasant but less than helpful. Oh, and also during the time we have waited for the subordination agreement (sent on the 5th) the customer has had no less than 3 phone calls a day from BOFA asking them to refinance with their company. Do you see a pattern here? So, I would assume if you need a subordination agreement from Bank of America, taked a vacation for about 3 months, hopefully when you get back from vacation you will be in a good mood, so when BOFA calls and says they still dont have it you will be in a good mood.

By the way, customers credit scores are above 800 and ltv is 87% with a cltv of 96%.

 

Loan Lady

Nov 22, 2010 03:08 AM #6
Anonymous
M. Ramos

I am in the process of trying to get Bank of America to subordinate.  My house is underwater with the first mortgage which means the second mortgage will get zilch.  I am planning to file bankruptcy to wipe out Bank of America.

 

Aug 06, 2012 02:06 AM #7
Anonymous
ryangosling

Thanks for sharing this information.

Aug 08, 2017 04:53 AM #8
Anonymous
Phil

You cannot wipe out bank of america mortgage in a chapter 7 BK, only a junior mortgage unless you are up side down. IF you decide to go that route make sure you include the third party on the "deed of trust", not the "Note". You need a professional BK attorney that is knowledgeable in that field. You may have to file a motion in court if needed to proceed. You can also file a chapter 13 and avoid the challenges, that would make it more easy for you to not pay the second loan and wipe it out at the end of the plan.

Oct 10, 2017 04:57 PM #9
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
35,048

Olan Carder

Ask me a question
*
*
*
*
Spam prevention

Additional Information