Bank of America - approved short sale but now they are changing servicers (loan sold)

Just received this from BOA: Please be aware, the lien on this property is scheduled for sale to a new Investor (non Bank of America) on 1/31/2013. This Sale will need to be closed by 1/29/2013 as we need to review and approve the Closing Docs, and require enough time to stop the Service Release. If this Sale does not close by 1/29/2013 you will need to obtain a new Sale Approval from the new Lien Holder.
We do have short sale approval but there is no way we will be able to close by that date.  Spoke to the closing officer and his manager but no luck in getting this cancelled.  I have already reached out in Twitter but they could not provide any assistance regarding this.  Reached out to the negotiator also but no response as of yet.  Any thoughts on who else can I escalate this file to?

Views: 3002

Reply to This

Replies to This Discussion

Unfortunately if you can't close before the approval date, you will have to start the process ALL over with the new loan servicer (Probably seterus or greentree). It takes about 30 days for you even to get a new loan # with them so it is a long siege.. If this is the 1st time you've had it happen, you're lucky.. Bank of America is spinning off bad debt to companies that pick up the loans for pennies on the $ so the new loan servicer is in at a profit. (and btw bofa has financial ties to these companies).. Truly an ugly situation.

 

Good luck! I'm closing one 1.29 that bofa spun off in July to seterus.. like I said, long siege.. We were waiting on response to offer (at the completed bpo stage)

Yes, I just had a 1,500,000 deal serviced released from BOA to Seterus, Inc., and I was surprised how quickly they responded and worked the file. It was great, but I also had a great negotiator, and I was involved directly with the investor, and she knew that. All in all, they were great.

OMG that is bad news for the one that we have just finally got through the BPO phase after 2 months. We are now at the end of negotiation and waiting for approval. Tough road with these guys...

B of A up to it's usual antics of escaping responsibility.  Nothing unusual here..good luck with these note sales and new servicers.

This is much more complicated then just someone being irresponsible Kimberly. They have to trade bad loans, since they are in pools of securities, most likely old Countrywide loans they acquired when they bought CW.

There isn’t any particular person at BOA who chooses to be irresponsible, this is just how the inside job works. So try not to assume that someone is being irresponsible because they trade bad mortgage securities to other servicer's who might have better options available to the borrower, and might be easier to deal with.

The mortgage industry sells loans and buy loans and still purchase mortgage “Notes” at a reduced price, since most of the mortgages they are servicing have been delinquent for years and/or months, which is a huge loss to BOA. 

Sad news.  I think I heard that you should be on the same program as longs as you enough time before the sales date.  Not sure but I'd check for sure.

Howard you stated that you have short sale approval but you did not state when it expires.  If the approval date expires past 1-29-13 then it doesn't matter what servicer has it . That approval letter is a legal document New servicer must abide by the approval terms from the previous servicer.  A few weeks back I had a B of A 1st mortgage and the short sale negotiator was able to retain it prior to issuing approval and we closed it with B of A. Also you didn't state who the new servicer is., hopefully it is not Nationstar

The loan is being serviced released, and unless you have a BOA approval in your hand, you can’t stop them from selling their delegating rights as a servicer, to another servicer, who most likely won’t have any delegating rights, thus making the process much slower. This can take an additional 3-4 months to the short sale, since you have to wait for the loan to be released and setup through a new servicer. Hope you have some inside BOA people to help you transition quickly and smoothly, without losing the buyer(s). 

Thanks to all for your replies.  I do have a BOA approval on hand which states close by 3/15/2013.  I do know the new servicer (SLS) and I have already reached out to them today.

Howard,

I had an approved Short Sale with Bank of America sell to Select Portfolio Servicing. Fortunately, they honored Bank of America's short sale approval but would not honor the large payout BofA promised to the seller upon sale of the property. They did say that if the seller qualified for HAFA that would be honored.

It took about three weeks to get my Third Party Authorization approved with new servicer but they have been fairly easy to deal with. 

The upside to the sale of my client's loan is that this new company is much smaller and I can talk to one of 5 representatives in one department. 

Good luck. Just more work and time added to an already long process when they sell the loans. 

try the CFO.....and the CEO.... they should want the $$$....this is happening to everyone right now...sorry it happened to you. Also, check out your state law on the subject...I think this sort of thing is included in the law here in California if I remember correctly...good luck

Howard,

This has happened to us twice so far.  The first time, BofA negotiated the short sale, issued an approval letter, and the day before the closing told us the loan was service released a year and a half ago!!!!!  Yes we had to start over but, they asked the new Servicer to expedite for us.  The new Servicer was cooperative but it took some time.

The second case, Bank of America was able to hold up the release for the two days we needed to get the property closed.  In this case we did have the approval, we were just coordinating the closing.

I would be checking on all my Bank of America short sales and ask if they are scheduled for service release so you can know in advance.

Wendy Rosenberg

Vice President

Title Express, LLC

954-494-7030

RSS

Members

© 2024   Created by Brett Goldsmith.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************