B of A FHA loan gets SOLD to a new investor RBS Financial after ATP & they counter way high!
I have run into a situation that I can't figure out how to fix. Any ideas or experience recently with this?
I have been doing a B of A FHA short sale with the same offer for over 6 months. We knew what the appraisal came in at which was $295K. The buyers were in that range, so they kept hanging in there. At about the 5 month range, we finally got the ATP and our net on our offer met their approval with 88% net. We waited and followed up and after about 5-6 weeks a negotiator with B of A called me and said that the loan investor had changed and that the loan wasn't FHA anymore and that it went to RBS Financial and that he was now submitting for approval, but not to be surprised if they came back with a counter. Well I found out yesterday that they came back with a net proceeds amount $30K higher than the offer. The B of A person said that the investor won't negotiate, that pictures and a CMA or value dispute won't work AND that the investor wants that amount.
I found out that these loans all got sold July 19th and that this is a new thing for B of A to have to deal with these new investors. He said that he has seen some come back $75K higher than the original appraisal that B of A had and he has seen agents submit CMAs, histories, etc and that the investor still doesn't budge.
Realizing that this is unrealistic for this property, we are pretty frustrated at this point. Has anyone else run into this lately? Has anyone else had to deal with this RBS investor? Any suggestions or contacts?
Holly Jessop, Utah
801-645-7653
Replies to This Discussion
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Permalink Reply by Wayne Brooks on
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FHA doesn't own loans, they insure them. "The loan wasn't FHA any more" after being sold, doesn't make any sense.
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Permalink Reply by Holly Jessop on
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You are right. I didn't state that correctly. The bank servicing the loan is Bank of America and I guess HUD was the investor (?) and now RBS is the investor. That FHA thing didn't make sense to me either and the B of A guy probably didn't state it right to me. He made the comment "It isn't an FHA loan anymore". I have always had FHA insured loans get an Approval to Participate despite the servicer and this one is not going to get a new ATP and the current one isn't valid anymore. I guess it is moving to a new servicer on Sept 13 also, so won't be B of A anymore. Despite the technicalities, I think you get the point.
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Permalink Reply by Jeff Payne on
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See if you can get to someone at RBS that is a decision maker, a department head , VP, CEO, BOD....
I also agree with Wayne, it is unlikely that this is no longer an FHA loan. Maybe Ron Scribner will advise us here
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Thanks Jeff for the suggestion. I am going to look them up this morning.
I agree with Wayne too. This is the first time this has ever happened to me on an FHA loan which I have done at least 50 of. They all have gotten the ATP's and now this won't be getting a new one and the current one is invalid. So if this is still FHA insured then why the difference? They just countered to the B of A contact 10% more than the current ATP that we had. He also said that this investor is not negotiating. It is this or nothing for now. He said that comps, pictures, etc won't make any difference and that they have had other agents try that and it hasn't worked.
I will try to call RBS and see if I can make any progress. In the meantime, we are going to try to get a better offer. The market has improved slightly since the original offer and we will just keep hitting them with offers (even though it is highly unlikely we will get their price) until something possibly happens.
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Call FHA and open a ticket. You will need to send a 3rd Party form to FHA with the case number on it. Since the ATP has been issued they should talk with you.
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Good suggestion. Thank you.
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Permalink Reply by Kevin - Greenville, SC on
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Many of these defaulted FHA Loans are being sold as part of Asset Pool Sales. After the sale occurs they are no longer insured by FHA, but the new Investor has some restrictions placed upon them.
The loans can only be sold after the borrower has gone through the entire FHA loss mitigation process. Prior to the formal foreclosure proceeding the loans are sold to investors. The Foreclosure is delayed for at least six months while the investor attempts a work out with the borrower (short sale, loan modification, etc.).
http://www.realtor.org/articles/fha-announces-distressed-sale-asset...
http://www.nclc.org/images/pdf/foreclosure_mortgage/mortgage_servic...
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