Bank of America, You're Doing It Again and A Distressed Homeowner Is Getting Foreclosed

By
Real Estate Agent with RE/MAX Professionals, CT 203-206-0754 REB.0759001
https://activerain.com/droplet/XGq

Bank of America, You're Doing It Again and A Distressed Homeowner Is Getting Foreclosed

Bank of America makes the rules but decides that it doesn't need to play by the rules. A distressed home owner that did comply with the Bank's system is getting foreclosed on, and the culprits are avoiding the blame.

This post is about Bank of America file :        xxxxx2367

131 Woodtick Rd

Back to the beginning: Bank of America utilizes a servicer, Dignified Transition Solutions (DTS) as it's agency to get sellers facing foreclosure into short sales to avoid foreclosure. They get onto a conference call with the seller and promise them that if they participate in the short sale, they can avoid foreclosure and if the sale is successful, there would be a HAFA incentive paid to the seller.

I met with such a seller back in March of this year. The seller acknowledged and agreed to participate. The bank sent out an appraiser to determine a sale value and we listed the home. Based on my market analysis, I listed the home on April 22 at $50,000 and before the bank could get me their value, I had a full price cash offer, $3,000 higher than the bank's appraisal of $47,000.

The file was first faxed to Dignified Transition Solutions to begin the sale process. The file had to be loaded by the Dignified Transition Solutions people onto Equator and I received an alert on 4/30/2013 that I could begin the upload of the file so that we could get this short sale going. There were exceptions taken to the form of documents furnished for funds verification of the buyer, which was resolved, and then a negotiator at DTS started to take exception to the format of the documents submitted by the buyer to verify that they were a state licensed business entity.

We had two soft declines of the file from Dignified Transition Solutions with each submission of the documents offered by the buyer trying to buy the home. This to me made no sense as my own LLC papers also carried none of the verifications that the negotiator at DTS was seeking.

After weeks of going back and forth, the Negotiator was sent the complete Articles of Incorporation of the buyer, in addition to having the members of the LLC create a special signature page to attest to it's authenticity.

In the mean time, we get a notice of foreclosure from this same Negotiator at DTS, after all of the forms requested had been furnished. The foreclosure date is set for June 27 and we have been trying to close the file since late May.

In calling the service centers at Bank of America and Dignified Transition Solutions to try and expedite the file to avoid the foreclosure the finger pointing is rampant. There have been no postponements of foreclosure requested or given up to this time, yet the Dignified Transition Solutions files shows different.

Bank of America claims that they cannot issue a postponement of the foreclosure without a letter from Dignified Transition Solutions, and Dignified Transition Solutions claims that they cannot issue an Acceptance letter of the short sale as they haven't had enough time.

I am supposed to tell the buyer and the seller that a Negotiator in the system that did not have proper familiarity with State of Connecticut procedures allowed this deal to get to foreclosure when all that they could possibly have was given to them weeks ago.

The last person that I talked to at Bank of America, felt that I had a better chance of wining the lottery than getting this foreclosure postponed.

Well, Bank of America and Dignified Transition Solutions you are really losing here. You have a buyer ready to close this now at a value that will be much higher than you will ultimately get by foreclosing. This asset will be off your books within a few short sales of getting me the letter we need. A seller that believed the letter your wrote and the person at Dignified Transition Solutions that they would get a HAFA relocation assistance check has also been lied to.

I am to call back before the Dignified Transition Solutions operation closes at 10 PM this evening EST to learn of this sellers fate, and my fears are that it will be just another case of too few care too little about what they say at Bank of America and Dignified Transition Solutions

 

Bank of America, You're Doing It Again and A Distressed Homeowner Is Getting Foreclosed

 

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Ed Silva  RE/MAX Professionals,   203-206-0754

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Re-Blogged 17 times:

Re-Blogged By Re-Blogged At
  1. Karen Fiddler, Broker/Owner 06/26/2013 04:26 AM
  2. Barbara Todaro 06/26/2013 04:46 AM
  3. Joe Petrowsky 06/26/2013 05:35 AM
  4. Tatyana Makarov 06/26/2013 05:53 AM
  5. Wanda Kubat-Nerdin - Wanda Can! 06/26/2013 06:05 AM
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  14. Maria Gilda Racelis 06/26/2013 08:32 PM
  15. Bob Crane 06/30/2013 02:15 PM
  16. John Martelotti 07/21/2013 02:43 AM
  17. MeLisa Minter, Realtor 07/22/2013 03:38 AM
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Rainmaker
370,688
Travis "the SOLD man" Parker; Associate Broker
iXL Real Estate-Wiregrasss\ - Enterprise, AL
email: Travis@theSOLDman.me / cell: 334-494-7846

Looks like MANY other Agents are having banks/mortgage companies drag their feet on Short Sales. I have one almost 6 months old and one almost 1 year. Both are fair offers!

Jun 27, 2013 03:26 AM #83
Rainmaker
3,316,795
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

BofA may just be one of the most difficult banks to deal with! I shudder when I hear they will be involved.

Jun 27, 2013 03:30 AM #84
Rainer
86,252
Mary Lawler
Realty Executives Advantage - San Diego, CA
Your Community Connection

The repeated posts about this continuing to happen absolutely infuriate me!   Remember Enron?  This is possibly worse!  It's so widespread.

First point:  No more invisibility.   Folks it's time to name names of the individuals blocking and delaying these transactions that should be successful.  As Realtors, our names and reputations are out there in the cities and towns where we work, why don't we call out the individual underwriters, managers and representatives from Bank of America and DTS so that they can no longer hide behind an institutional defense?  It would be great to publicize the names of people employed by B of A and  all the other slimy outfits who delay, lose paperwork and otherwise obfuscate the process. 

Names and locations....  It would be tremendous to shame those all the way up the food chain and lead to another class-action lawsuit to enact real, meaningful reform.  There are obviously new offenses continuing and their method of operation hasn't changed one bit.    The big national payout obviously didn't have any effect on the busness-as-usual model of screwing over every homeowner possible.

These lenders and servicers are arrogant, incompetent and negligent,    But the most important thing to remember, is that famillies are losing their homes and people get their credit trashed because of B of A and their invisible, incompetent employees' willful obstruction of process.   Let's get their names out there!  

Is ActiveRain the forum to start this? 

Second point:  Pull all your business from these lending institutions and strongly and publicly encourage others to do the same.  I closed my HELOC and the associated checking account at B of A and was explicitly clear about the reasons for doing so.  I told them I would never come into their bank again.   People I know who bank there have heard from me and some have taken their business away from B of A.  

If every branch began to lose depositors every day and was told the reasons why, someone, somewhere in the lofty allegedly untouchable domain of B of A management might take notice.    Hit them financially and publicly... they deserve bad press and worse punishment because of their terrible process, terrible decision-making and the awful life-changing results.

Can you imagine the effect of people picketing outside B of A corporate offices and branches with signs saying "Stay away from B of A...Incompetent,"   "B of A... Too big to Care," "Boycott B of A."   The negative but true slogans are far too  numerous to even list here.

Yep, it would hurt the small people at the branches first - it always does.  But we need to create a roundswell at the bottom to throw the bums out at the top and keep them out of banking.  Better yet, put them behind bars to reside with people who have committed lesser crimes, some of whom might even be their victims.   They have made people homeless and financially ruined because of their willful and continued negligence.   There should be a very public and very negative price to pay for that at the highest corporate level.

 

 

 

Jun 27, 2013 03:59 AM #85
Rainer
77,312
Sara Mehrpouyan
Rodeo Realty 818-903-2040 - Los Angeles, CA
Short Sale Agent - Los Angeles

I hope that it works for the homeowner and for you, because you put SO much effort into it. When the short sale is outsourced to these companies, it can become even more of a difficult process. Good luck. 

Jun 27, 2013 04:49 AM #87
Rainer
298,462
Momentum Realty
North Orange County CA Real Estate Specialists - Yorba Linda, CA
Orange County CA Real Estate Agent

Hi Ed,

I'm SO sorry to hear this, and really feel for your seller. I've had my own issues with B of A and think the whole company should be burned to the ground. There are a few things you can do, to try and save this poor homeowner from foreclosure. I've had success with these steps:

File a complaint with the Consumer Financial Protection Bureau. This will escalate the case almost immediately to someone that can actually DO SOMETHING and won't just give you lip service from some low level employee that doesn't care. Typically, the homeowner will be contacted by someone at the office of the CEO and President.

Since your state was involved with the National Mortgage Settlement, there may be a state organization that oversees compliance with the rules that were put in place due to the lawsuit. For example, here in CA, we have the California Monitor. We can file a complaint with this group as well, by email and/or phone, and they take action immediately, if the homeowner is at risk of foreclosure, and the bank is not abiding by the rules.

Hope this helps and I wish you and the homeowner all the best!

Gina

Jun 27, 2013 04:50 AM #88
Rainer
126,420
Marlis Landreth
Retired - Tucson, AZ
Retired Tucson Realtor

Why am I not surprised.  Hopefully, you'll get some action once the internet "monitors" (kind of like hall monitors of school days) read this scattered all over the internet.  Here's hoping with fingers crossed for you. 

Jun 27, 2013 05:18 AM #89
Rainmaker
820,820
Juli Vosmik
Dominion Fine Properties - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

Ed, why am I not surprised to be reading this?  It's the same old, same old.  Why don't people just do their jobs and actually HELP people instead of making up more and  more "rules" to make people  jump through.     It's nuts.  

Jun 27, 2013 05:23 AM #90
Rainmaker
686,809
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker
I have had excellent working relationships with other short sale lenders. Too bad that BofA's name always comes up when it does not turn out well. You'd think the get the message.
Jun 27, 2013 06:45 AM #91
Ambassador
2,758,801
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

Ed, Kudos for the number of responses you got to this post. I hope that your seller's situation got resolved...

Jun 27, 2013 07:11 AM #92
Rainer
30,336
Ymeki Stevens
Keller Williams Realty Partners - Woodstock, GA

Great post! Everyone seems to have a horror story when it comes to Bofa. They seem to like lawsuits.

Jun 27, 2013 09:49 AM #93
Rainmaker
1,065,137
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

I am sad for the homeowner and for you as the Realtor.  Instead of this being a win for everyone, it may be a lose all the way around.  What are these people thinking?  Everything in our business and personal lives is becoming more complex by the week. People do not communicate with each other and regulations are preventing systems from working.

Jun 27, 2013 12:51 PM #94
Ambassador
4,490,173
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

It would have been nice if the Taxpayers had had a choice in whether to foreclose on BOA and a few of their friends when they were begging for help a few years ago.

Jun 27, 2013 04:46 PM #95
Rainmaker
193,859
Joy Carter & Jeff Booker Brother and Sister Team
Keller Williams Parkland/Coral Springs Realty-GreatFloridaHomes Team - Coral Springs, FL
Trust Your Family's Move To Our Expertise!

I saw a newspaper article recently about a lawsuit, that said Employees were given incentives to stall files so the homes would foreclose.  

So SAD!!!  You would think that they would know that as agents, we see right through them, and would not even want to have loans with them, based on these occurrences. Personally I stopped doing business with them a year ago. Joy

Jun 27, 2013 10:48 PM #96
Rainmaker
848,657
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Ed, we are having the same or similar problem with Sun Trust.  They hire a servicer.  We get an executed contract.  Sun Trust cancels the servicer!

Jun 27, 2013 11:28 PM #97
Rainer
296,283
Paddy Deighan JD PhD
TimeshareLawyers.pro - Vail, CO
Paddy Deighan J.D. Ph.D

another unfortunate occurence tht should never happen., The servicing agents and processors look for reasons NOT to modify instead of looking for reasons to give a home owner a second chance

Jun 28, 2013 11:37 AM #98
Rainer
18,148
Nancy Strabel
Keller Williams Realty Consultants - Alpharetta, GA

I am experiencing the exact same process with BOA.  The BOA mortgage amount will be paid in FULL - they are only being asked to forgive some penalties and late fees.  The second is the one loosing $$ and they have already agreed to the SS.

The servicer, Service Link, has lost  the file, stalled the file, closed the file because of a missing middle initial on one of a 100 pages, lied, procrastinated, etc. etc. etc.  They now say they have the approval but will not release it because BOA is threatening to move the file (which is complete) to another servicer.  Meanwhile, BOA has just moved the property to the foreclosure department for an August foreclosure.

This is insanity!

Jun 30, 2013 12:03 AM #99
Rainmaker
552,787
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

On a related note..I never recommend BOA for a loan and strongly discourage anyone who tries to  use them.  Every transaction I've had with them has not closed on time.  And when my customers send letters of complaint--they were ignored. I only recommend LOCALLY based lenders.

Jul 01, 2013 06:27 AM #100
Rainmaker
227,764
Debi Braulik
www.roundrealestate.com - Maple Valley, WA
Selling Maple Valley to Fife WA Homes For Sale

18 months it just took me to close a BofA short sale. 18 months! Crazy!! So frustrating. I feel your pain. Luckily we did not have a foreclosure date set. We did go through 3 servicing companies though. Stick to it. The squeaky wheel will get greased. It's only a matter of time. Good for you for fighting for your client. 

Jul 01, 2013 07:52 AM #101
Ambassador
640,187
Larry Lawfer
YourStories Realty Group powered by Castles Unlimited® - Newton, MA
"I listen for a living." It's all about you.

And there are more twists to their reprehensible behavior.  I have a client who had a portion of their loan reduced as part of a settlement with the state of Massachusetts. It was mandated.  Well, what they did was forgave the portion and the distressed homeowner was whacked with a huge tax bill for the full amount.  I just don't know how banks like this survive.  I would never, ever recommend such a busines.

Jul 06, 2013 07:57 AM #102
Ambassador
2,151,176
MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Good thing you posted the last four of the file number so I can confirm that one actually is NOT my file, although the story is almost the same.

Jul 11, 2013 04:56 PM #103
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