Yes, that's right, I already had the approval letter in hand and everyone was proceeding to the close date.  The buyer did their inspection and was ready to move forward.  No indication of trouble in Bank of America/Fannie Mae paradise.  Today via equator, I get an message with a denial letter attached.  It was denied because it failed Quality Review.  I called the customer service dept and there were no other notes except for that nondescript blurb.  The CSR also confirmed that the short sale had been cancelled in equator.  I sent a note to the negotiator, but haven't gotten a response yet, if I ever will.  Has this happened to others or am I just the lucky one.  By the way, the buyer was paying higher than market value for the property which was in lousy condition, but since FM doesn't consider repairs in their highly inflated prices, the buyer was paying more than he should.  FM is destroying short sales left and right.  Comments, insights, and sage advice is welcome and appreciated.

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So they issued a formal written approval?  THEN they denied it? That doesn't make sense.  Usually they sent to Quality review and Fraud right before they ISSUE approval.  They usually don't issue written approval, then deny.  I am not sure they can even deny it after they have issued written approval (well, maybe not approve the final HUD)

I would tweet them and escalate it and find out why it was denied.  They obviously didn't like somethey saw.

I've had this happen to two files.  One was where the selling broker and buyer broker were from the same agency and they didn't like it, and once where they felt there was an arms length transaction violation.


Good luck


I experienced a "soft decline" in December 2012...had letter of approval with prior buyer..who withdrew due to excessive time for BOA processing...with new buyer and soft decline status...everything exactly the same as approved except for name...Its now approaching March 2013 and still waiting for it to come out of "underwriting"...

2 weeks ago...Our Bank negotiator said it should take up to 3 days for the approval.....tmrrw is 2 weeks and still waiting. We have done everything exactly as lender requested.....i am doing everything to keep new buyer from withdrawing, All in all....I have lost mucho commissions due to BOA "soft declines"....Hard Declines",,,"Cooperative Short Sale protocol"....this, that....etc etc.

It has been a joke ! But, here in Chicagoland...Short Sale is the only player in many suburbs,,,,Oh well....after 22 yrs in the business, i must be doing something right ! Im still here !

Good Luck to all......Mike

Hope yougot the twitter team involved and HUDs national servicing team. Iif the ATP and net proceeds were met plus all the disclosures signed hard to figure out what got the file flagged. Good luck!!

what is the twitter team address? how do we contact them? thanks, ,Mike

send a "direct message" to @BOFA_HELP with your phone number and property address. They will call you in a few hours. Response is better than calling the office of the president, but if you don't want to mess with twitter, the office of the prez is a good alternative.

I just read a post that BofA has transferred $92B of FNMA, Freddie, and Ginnie Mae servicing rights to Nationstar.  The post was presuming many short sales underway with BofA may have to be restarted with Nationstar.

I had this exact same thing happen to me. It turned out Fannie changed servicers so BofA had to revoke the approval because it was no longer in their authority. It took a couple weeks for the servicer to acknowledge the borrower but when they did I begged for an escalation and explained that we had loan approval and the buyer was ready to close. They issued a new approval in a couple weeks and we closed.
No, it's true. Everyone better start watching about for Bank Of America's antics again. I had a pre-approved co-op sale going smoothly, only 2 get a denial 2 weeks later with the same response. I did get the twitter team involved since I couldn't get a legitimate reason for denial and was told the seller was ineligible per QC because it was an estate sale. Duh, they knew the borrower died and solicited the executor to do a short sale he was going to let it foreclose! I was told to reinitiate and now they're eligible for HAFA? Doesn't make any sense, I'm not holding my breath this will be approved from their games and I told the buyer the same...

Denied after approval? wow.  Confirm BOA did not sale the loan to another servicer.  I received a denial letter once in Equator addressed to the wrong borrower.  They closed my file in Equator however their mistake was corrected later.  ESCALATE.


Good Luck.

Happening all the time ...   Sounds like the loan was sold.  If so, the Seller should have received notification about the change in servicers -- ask them.  If it's not a servicer change, it's an error in Equator.  I've had this happen as well.  Hopefully, by now you have it resolved one way or the other and you know where things stand, as your post is several days old.  There are a large number of escalation options.and I would pursue all of them if this is still not resolved.  

Mike, I think Ted may be correct.  I hope the best for you!  I am guessing you have already escalated this on the Fannie Mae short sale sight to get an answer?  At this point, equator may become useless since they are just the servicer.  I think everyone on this post may have been affected with a FNMA value issue as we all know how they price their properties......and it is no suprise that they  finally trickled down this attitude  to their loss mitigation.  Good luck!

B of A declined our short sale after well over a year because listing agent and homeowner both worked for Keller Williams at one time (different offices, different times) and they declared it an arms-length violation. I don't think they realize an agency agreement creates the same business relationship between seller and listing agent...  7  months earlier they had approved this same short sale, but threw it and all our other files out of equator with no explanation; buyer walked because we had to restart file.  I don't know many agents who want to touch another Bank of America short sale, stories like this are so common that that this seems to be how they do business now.



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