Short Sale Horror Story!
Halloween is just around the corner. What better way to celebrate than to share a short sale horror story and bank debacle.
This, of course, is a TRUE story. I have decided to name the lenders/bank, but not the representatives or agents. I have no problem holding the lenders/servicers accountable for their foolishness and absurdity with regard to the short sale process, which they continue to complicate further and further.
So many words come to mind when describing the short sale process, rules and guidelines they create. Some words I cannot express in this article, but you know what they are.
“Lost in Short Sale Hell”
Lender/Servicer: Countrywide / Bank of America
Investor/Owner of Note: Fannie Mae
Loan Balance: Approx. $161,976
Current Market Values: $20K - $30K
Time Frame: 7 months and still going
Current Offer: $30,000
Location: Desolated townhomes of Palm Beach County, Florida
This short sale takes place in a community with approximately 140 townhomes. Of course a large portion of them are foreclosed, in foreclosure, or behind in payments. As of April 2009, there was only one (1) sale since July 2007. It sold for $30,000.
The development’s HOA is broke and no longer in operation. Therefore, it is currently in receivership and a local attorney is assigned as the receiver. The receiver has no interest in getting these properties sold. He gets paid every month he has to service them. He’s actually telling buyers they’d be crazy to purchase in the community.
This short sale file was submitted to Countrywide/Bank of America on March 18th of this year when files were being processed slightly quicker than they are now. Since this is a Fannie Mae loan, two (2) BPO’s/Appraisals were required. By May 19th the negotiator contacted me to inform me that the offer was too low and we would have to counter at a higher amount. At which time I asked how much and he replied, “$35,000.”
That’s correct! Our offer was for $30,000 and property values would continue to decline. They were willing to forgive over $100,000 of the original note without a second thought, but the file died on the last $5,000!
There have now been two new foreclosure sales for LESS THAN OUR $30,000 offer…one for $29,750 and the other for $21,000. These sales were to an investor looking for properties to rent.
A new offer was submitted to Bank of America on June 29th, but to this date they can’t find the new appraisals that had to be completed and new ones have been ordered. The file has been escalated to upper management at least four times.
I have yet to figure out was “escalated” means at Countrywide/Bank of America. I was actually told during a recent call that the “escalation” team now has to reply to the escalation request after the first notice and their response is monitored. Now, who is doing the monitoring is still in question. They still haven’t replied to any of the escalation requests. The file is lost in SHORT SALE HELL! We are still waiting on the appraisers’ calls.
I’ll have another Horror Story shortly. There are sooooo many juicy ones from which to choose!
Share your Short Sale Horror Story with us!
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