BofA FHA Short Sale Help
Full disclosure: I am the buyer in this situation.
I have been in contract for a BofA FHA SS since late August and I have yet to hear approval/anything substantial from the bank. I realize as the buyer I have zero power (is it possible to have a negative number of power, as it feels as though that's what I have?) in this situation, nor can I contact the bank, HUD, etc. regarding the sale. I do have a question or two that I can hopefully get specific, pointed answers for. Here goes.
1) The listing agent (as well as my agent and myself) have heard/read that negligence on the bank/negotiators side can sometimes be "corrected" by contacting HUD and explaining the situation, which causes them to contact the bank. The problem is none of us could find a way to contact HUD (the only number we found the person from HUD simply told us to contact BofA, which we know doesn't work very well). The sale is taking place in Minneapolis, MN. Is there any number(s) the Listing Agent can call for HUD to help aid this process along?
2) We were recently assigned a new negotiator with BofA (we don't know why...the other one never contacted the LA or returned emails or calls). Is there anything the LA can do to "expedite" the process this time around?
3) I personally tried contacting the @BofA_Help Twitter account, to which someone actually replied. I disclosed I was the buyer, and that I realize they can't tell me anything, but I asked if they would contact the LA for more information. They said the only way they can do that is if the LA contacted them via Twitter such as I did. I expected this. I forwarded the information to my agent, who then forwarded it to the LA, who then responded by saying essentially that she was not going to try that, even though I actually did get a real-live human on the phone. How should I deal with this?
Sorry for the barrage of questions, I'm just frustrated. We all are, actually. I just want to make sure everyone's doing everything they can to make this happen, as no one wins if it doesn't.
Replies to This Discussion
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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
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Jesse,
All communication with BofA short sales is through Equator and with the Listing Agent. If the Listing Agent will not escalate via Twitter, etc. then ask YOUR agent to contact the Listing Agent's Broker to request they escalate.
Within Equator sometimes it looks like a negotiator has been assigned but it really hasn't they've just put a name as a placeholder or it within customer service workign it's way through the system.
BofA FHA SS will take several months, so from August to November is not all that long a timeframe.
I would make sure your agent is pushing the Listing Agent as hard as possible and keeping to the letter of the Purchase Agreement.
Best of luck,
Thom ColbyBroker
Newport Beach and Palm Desert CA
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Permalink Reply by Jesse S. on
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This being an FHA SS, it is not in Equator. I have heard that now you can process them through Equator (is this correct?), but since this SS has been listed since early this year (I'm the second buyer), it is using the traditional SS method.
So is there no way to involve HUD? Is it a rumor that HUD can help speed up the process?
Thanks for your advise. I will discuss this with my agent ASAP.
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Permalink Reply by Kevin - Greenville, SC on
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What is the actual issue with BOA?... Is there an Approval to Participate in place? Has the As-is Appraisal been completed? Title Search?
You're correct in that FHA PFS are not handled though Equator.
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When we entered into this initially, we were told this was a "pre-approved" short sale, and that the list price was also pre-approved, and the total process should take 1-3 months. After some digging and research, it seems that both of those claims get thrown around a lot and really don't seem to mean what a standard buyer would interpret them as, if they mean anything at all.
The LA also stated that all appraisals have been done, which seems to mean that the house has been approved to participate. I am not sure about the title search.
I guess the largest issue is the fact that myself and my agent feel a bit mislead. When a worst-case time frame is given to you, and you're given information about pre-approvals that doesn't seem accurate, once the three months has come and gone without a single word (besides having a few additional BofA-specific verbiage addendums signed), you begin to wonder what's going on behind the iron curtain. The biggest issue if the bank's lack of communication abilities. I would like to find a way for the LA to get some answers/information from them, which seems impossible.
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Jesse,
FHA PFS are 'pre-approved (if a ATP is in place)' and to be initially priced at the As-is Appraised value as determined by an FHA Roster Appraiser. If certain tiered (88,86,84 percent) proceeds are met and there are no allowable costs/fees added and if a ATP is in place, the mortgagee has 5 working days to approve or deny from the time a contract is presented to them.
Do you have a Buyer(s) Agent representing you?
Kevin
(864) 485-9283 call or text
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Hi, Jesse! I'm sorry to say that I don't have any advice for you - I just thought it would be nice to know you aren't the only one! Your situation sounds almost identical to mine, except that we are going through Equator as it is not FHA. The listing agent kept saying we are "still waiting" but it seemed like there should be something more specific he could tell us. At week 8, I also tweeted B of A myself and the next day my agent called saying a new negotiator was assigned and the appraisal was ordered. That was now 3 weeks ago and I haven't gotten another update since. I understand that these take time and I'm willing to wait- it's just the uncertainty that's killing me! I've asked that the listing agent just let me know when he's attempted to contact B of A to give me some pIece of mind but he doesn't. So either he doesn't really care much about my sanity (ha) or he just isn't being as deligigent as it seems he should be. I know none of this helps you, but your situation sounded so similar that I had to chime in! Good luck!
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One other thing - my agent also scoffed at me when I mentioned the b of a tweet department, but that's the only thing that seemed to get the ball rolling. Press her to use it - I'm convinced we'd still be stagnant if I hadn't tweeted. B of A seems more concerned about their reputation on social media than anything!
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Permalink Reply by Richard on
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Jesse S. and Jennifer,
I wish you both the best in your effort to buy these properties. From I've seen, sometimes these deals turn out very well if you have the right people for the job and the lender want to play ball. Thanks to all the good agents out there. Then there are other times, it is not so well. My suggestion is to stay on top of everything and don't forget to keep looking at other potential properties. In other words, make your own luck!
You can't necessarily trust everyone to take care of their responsibilities. I went through an 8 1/2 months of hell that got as far as escrow, just to find out that I had been mislead all along. Everyone lost in the end, plus all 3 agents got fired. And, the homeowner has hired attorneys to go after the LA and their negotiator, in addition to another attorney team to short sale her house.
As many of the good agents say on this site...........have your agent do your research up front. That starts with hiring the right people.
Good luck!!!
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Thanks everybody for your responses and well wishes. I seem to be reading more and more about the positive effects using BofA's Twitter team is having on the success rates of short sales. I feel one of the reasons why the LA is so resistant to attempting it is because all of the pressure has been coming from me (or that's how she views it, anyway), not from a peer such as my Agent. If we don't hear anything by mid-next week, I'll be calling up my Agent to discuss a tactic to get the LA to try this method. I can't for the life of me understand why she would be so resistant. It takes minutes, and requires next to no effort.
On a side note, is there no way to contact HUD? It would be nice to figure out what's going on from their end, as they could easily be the bottleneck, too. The LA has no way to contact HUD that she's been made aware of. Any phone numbers or e-mail addresses would be greatly appreciated.
Thanks!
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Permalink Reply by Keji Ogunleye on
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First I'm not sure why you want to contact HUD. Is this an FHA loan? Also if this short sale is being handled by one of BoA out-source company(UTLS or others) then they are terribly slow and do not work at the same pace as BoA. BoA as greatly improved their process and the LA should be able to escalate via equator. Also using twitter really does work, but only the LA can do all these.
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Yes, it's an FHA loan (it's in the title of this thread), and since it is, it cannot be escalated through Equator. This is also why I'm looking for some HUD contact information to pass along to the LA.
I will have to sit down and talk with my Realtor about getting her to use the Twitter contact method. I know it works. There's proof all over the Internet.
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Jesse,
BOA is usually very quick with dealing with FHA short sales once the ATP has been sent to the listing agent. If your contract meets the required terms of the ATP, then most BOA will be fully approved and can close within 30 days. However, if it does not meet the terms on the ATP it must go to HUD for approval which can take longer. Asking for closing costs above the 1% sales price typically takes BOA an extra 20-30 days for approval since they are required to get a variance by HUD for this contract even if it meets the required net to the bank.
If you are still having problems with getting the final approval letter (and your contract does meet all the required terms of the ATP), have the listing agent contact HUD. She will need to fax an ATR to 918-236-3274. Let them process this for 24-48 hours, then she will need to call 877-622-8525. Please be sure that the FHA Case # is listed on the ATR and mentioned when calling. They will then assign you a HUD specialist who will contact BOA to see what the issues are on the file and help speed things up if possible.
Good luck!
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