BOA Alleged Equator Fraud
I was recently advised that BOA recently restricted all agents of a large brokerage because one short sale file allegedly contained fraudulent document(s). Furthermore, when any of these agents jumped ship to another brokerage because of their inability to utilize Equator their accounts remained restricted based on their prior involvement with the original brokerage. If any document(s) were fraudulent they would have been provided by the Seller, not the listing agent. However, BOA appears to be holding the brokerage and all of their associates responsible. This has presented further problems in that this restriction applies to all other lenders utilizing Equator.
The question for this discussion is has this occurred to anyone that you have heard about? NAR is currently working to resolve this issue and we would like to know if this is wide spread or just an isolated situation.
Replies to This Discussion
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Permalink Reply by Tni LeBlanc (805) 878-9879 on
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Sorry but this is just another reason why I won't allow an agent to use a third party negotiator. Call me a control freak. Go ahead.
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Permalink Reply by Richard OBrian on
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No you’re not a control freak, it just the right thing to do for your clients we always do our own negotiations, period.
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Permalink Reply by Smitty on
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So wait, all 3rd party negotiators commit FRAUD? Sorry Tni but I can equally say all lawyers are fraudsters. Let's face it, Realtors, and lawyers have the reputation of a smooth used car salesman. I think it's best to do our homework about someone we may work with rather than stereotyping an entire profession together as fraudsters.
Yes, I'm a 3rd party negotiator and it's this type of narrow mindedness that gets frustrating.
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Hi Smitty,
C'mon now we all get enough "not readin' and jumpin' to conclusions" from the banks. Let's not do it to each other. :-) I'm sitting around this chain waiting for more details like everybody else -- I have no idea if a 3rd party negotiator was used or that I would agree that fraud was committed.
I think I admitted I was a control freak and I'm also the responsible broker for my brokerage, so it's my name on the line - no one else's. I supervise and control my agents, but I obviously cannot exert the same amount of control over a 3rd party negotiator. And for me that doesn't work, because the bottom line is if I'm the listing broker, I will be held accountable. So, I am not comfortable handing over short sale negotiations to people who I don't have supervisory authority over. Period.
And, as an aside, I have developed a small pet peeve for absolutely everything being referred to as a "profession." Realtor'ing and third party negotiation of short sales are not "professions." There definitely are many "professional" Realtors and short sale negotiators, but it is not the same thing as being in a profession. Since I am an attorney, a Realtor, and a short sale negotiator, I feel qualified to make that call. Ok I think I've said my peace.
Cheers,
Tni
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Permalink Reply by Brian Peters Jr on
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Addendums still do not hold sway
It is a scare tactic used to frighten people away. It just another tactic to stop hard working people from making deals. Call Jeff Watson. the nations number one short sale attorney. Yes fraud and fiduciary are two different things. But when you realize that the bank is a third party you have to conclude that what is said or done to them is irrelevant. I love it when agents try to play lawyer like they know what they are talking about. Remember your duties as an agent to protect the buyer/seller.
bottom line: Who did you sign the listing agreement with? The bank or the poor soon to be foreclosed homeowner?
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NAR is so out of touch it is ridiculous.
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Ummm... I am an attorney. But I do like to play too. :-)
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Brian, Jeff Watson being the the number one short sale attorney is literally "opinion" - What constitues him being #1? He's done thousands of closings? He has litigated thousands of cases? He has gotten the most approvals of any lawyer in the country? I'm not saying he's not very good at what he does, but what is he really #1 at?
As far as what you are trying to explain, I get it. I KNOW that the bank is not party to the contract. The problem is investors like Freddie Mac are issuing approvals with deed restrictions which prohibit resales up to 120 days or cloud title. They are issuing statements to servicers that if an investor buys the property and DISCLOSES they are reselling for profit immediately, that they are to immediately terminate the sale. They are holding agents accountable. If an agent LIES in any way, it's fraud, no matter how you slice it. So an agent signs these addendums and then knows an investor is going to sell in a month, they are liable because they KNEW and it wasn't disclosed. Investors are screwed either way. If they try to disclose it FM will cancel the sale. If they HIDE it it's fraud. No Realtor wants to go up against freddie mac no matter how CRAZY they become.
I'm dealing with a situation wher a Chase negotiator thinks my homeowner committed FRAUD. I don't want to go into the details, but all you have to do is talk to the guy for one second and NEVER was that the case, but I'm dealing with some stupid negotiator that basically thinks this is true so even in escalation, my file was denied. If I was a lawyer, I'd ask Chase to PROVE it. They said that FM would consider his actions fraudulent, which is HYSTERICAL because FM already approved the sale once (two months ago) and NOTHING HAS CHANGED since then.I WISH I was a lawyer because doesn't FRAUD have to be determined in a court of law? Doesn't it boil down to the INTENT of the person committing the fraud? I mean I could say you committed fraud when you posted on this site couldn't I? It's my word against yours, and well, I say you did? THAT is what I'm dealing with. No one but a negotiator THINKS it's fraud and I can't get my sale approved. I think if ANY legal person talked to this guy for one minute, we could get this straightened out, however nope, I wasn't given that option, so now I have to go to my attorney general for help. The lenders cry wolf and everyone runs.
The bottom line is the lenders/servicers/investors are calling the shots and unfortnately we have to adhere to the rules no matter HOW STUPID they are.
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Reading the last statement at the end made it all clear. We call the shots. They think they do but we do. Period.
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I digress. Good day.
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Hi Brian,
C'mon you're going to use the word "digress" in a chain where you're complaining about people "playing attorney?" You have to be able to laugh at that just a little ...the only place I hear that word is in open court or on Perry Mason. Take care my friend, we're probably on the same side after all.
I'll stick with my scapel and you be careful with that chainsaw...
Cheers,
Tni
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The bank is the third party.
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