Please help me understand this decline - as its a new one and makes no sense.
I started a short sale several weeks back with First Franklin. Halfway through the short sale the loan gets sold to Bank of America. We start over in Equator, all is well, its a no brainer approval. Equator counters me, We come to agreement - I start expecting the approval letter.
Instead a few days later I received a decline letter. No explanation on the letter, but negotiator explains "high negative mitigation".
I went up a few chains on the ladder to get someone to explain this and basically, while being rather vague, they explain to me that they stand to gain an additional $60k by foreclosing, so they will not approve the short sale.
Has anyone had this happen? All I can think of is they got some kind of sweetheart deal when they bought the loan protecting them against losses, rendering the short sale futile.