FHA Short Sale with BofA denied due to the severity of the Chinese Drywall in the home. - Short Sale Superstars2024-03-29T07:27:27Zhttp://shortsalesuperstars.com/forum/topics/fha-short-sale-with-bofa-denied-due-to-the-severity-of-the?commentId=3468065%3AComment%3A220221&xg_source=activity&feed=yes&xn_auth=noSo just wanted to update on t…tag:shortsalesuperstars.com,2013-08-07:3468065:Comment:3275592013-08-07T14:16:59.310ZNelly Flaquehttp://shortsalesuperstars.com/profile/NellyFlaque
<div class="description xj_comment_editor xg_user_generated" id="desc_3468065Comment327815"><p>So just wanted to update on the situation, we are still dealing with BofA trying to get a short sale. The Short Sale has been approved by the bank and now we are just kind of waiting in limbo to see what is going to happen. In the mean time we have been harassed by the HOA and have been sued by them on bogus violations and they have placed a lien on our property and they are trying to foreclose. This…</p>
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<div id="desc_3468065Comment327815" class="description xj_comment_editor xg_user_generated"><p>So just wanted to update on the situation, we are still dealing with BofA trying to get a short sale. The Short Sale has been approved by the bank and now we are just kind of waiting in limbo to see what is going to happen. In the mean time we have been harassed by the HOA and have been sued by them on bogus violations and they have placed a lien on our property and they are trying to foreclose. This house has been nothing short of a nightmare.</p>
</div> So just wanted to update on t…tag:shortsalesuperstars.com,2013-08-07:3468065:Comment:3278152013-08-07T14:15:29.097ZNelly Flaquehttp://shortsalesuperstars.com/profile/NellyFlaque
<p>So just wanted to update on the situation, we are still dealing with BofA trying to get a short sale. The Short Sale has been approved by the bank and now we are just kind of waiting in limbo to see what is going to happen. In the mean time we have been harassed by the HOA and have been sued by them on bogus violations and they have placed a lien on our property and they are trying to foreclose. This house has been nothing short of a nightmare.</p>
<p>So just wanted to update on the situation, we are still dealing with BofA trying to get a short sale. The Short Sale has been approved by the bank and now we are just kind of waiting in limbo to see what is going to happen. In the mean time we have been harassed by the HOA and have been sued by them on bogus violations and they have placed a lien on our property and they are trying to foreclose. This house has been nothing short of a nightmare.</p> Help me out here. In a short…tag:shortsalesuperstars.com,2012-04-01:3468065:Comment:2230192012-04-01T18:45:30.402ZJoy Bakerhttp://shortsalesuperstars.com/profile/JoyBaker
<p>Help me out here. In a short sale what the Servicer, Investor and Insurer are agreeing to is a short payoff. They are agreeing to accept less than the total amount owed as payment of the debt. How does that make them liable for the condition of the property? They don't own the property. </p>
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<p>I would think there would be much more liability for the condition of the property if they foreclose, in which case they will OWN the property.</p>
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<p>I have a sneaking suspicion…</p>
<p>Help me out here. In a short sale what the Servicer, Investor and Insurer are agreeing to is a short payoff. They are agreeing to accept less than the total amount owed as payment of the debt. How does that make them liable for the condition of the property? They don't own the property. </p>
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<p>I would think there would be much more liability for the condition of the property if they foreclose, in which case they will OWN the property.</p>
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<p>I have a sneaking suspicion this will end up being a bank "walk away" where they just never foreclose. Then the poor SOB who owns the property will be left hanging out to dry with a property he can't live in and can't sell (because they won't approve the short sale) but will still technically be responsible for because his name is still in title.</p>
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<p>Absolutely unconscionable on the part of BAC and FHA.</p> xtag:shortsalesuperstars.com,2012-04-01:3468065:Comment:2226732012-04-01T11:01:36.556ZBryant Tutashttp://shortsalesuperstars.com/profile/bryanttutas
<p>x</p>
<p>x</p> So now that we have had the S…tag:shortsalesuperstars.com,2012-03-29:3468065:Comment:2224972012-03-29T21:57:52.419ZNelly Flaquehttp://shortsalesuperstars.com/profile/NellyFlaque
<p>So now that we have had the Short Sale declined we requested to do a Deed in Lieu and BofA is also declining that. Unreal! Here is what BofA stated:</p>
<p><span id="yui_3_2_0_6_1333058447114578" style="font-size: 11pt; color: #1f497d;">Per FHA/HUD you must attempt a short sale before you can do a DIL therefore if you cannot do a SS you cannot do DIL</span></p>
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<p><span style="font-size: 11pt; color: #1f497d;">Is my only…</span></p>
<p>So now that we have had the Short Sale declined we requested to do a Deed in Lieu and BofA is also declining that. Unreal! Here is what BofA stated:</p>
<p><span id="yui_3_2_0_6_1333058447114578" style="font-size: 11pt; color: #1f497d;">Per FHA/HUD you must attempt a short sale before you can do a DIL therefore if you cannot do a SS you cannot do DIL</span></p>
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<p><span style="font-size: 11pt; color: #1f497d;">Is my only option now a foreclosure?<br/></span></p> That is a tough onetag:shortsalesuperstars.com,2012-03-26:3468065:Comment:2215402012-03-26T03:02:16.078ZJeff Corporonhttp://shortsalesuperstars.com/profile/JeffCorporon
<p>That is a tough one</p>
<p>That is a tough one</p> Hi Nelly,
I did get a short…tag:shortsalesuperstars.com,2012-03-25:3468065:Comment:2214162012-03-25T14:35:45.185ZLila Lopezhttp://shortsalesuperstars.com/profile/LilaLopez
<p>Hi Nelly,</p>
<p> </p>
<p>I did get a short sale approval with Space Coast on a home that had chinese drywall as well. While the loan was not an FHA loan, they had no issue with the existence of the chinese drywall, as the liability does not go with the lender. It took some doing to get them to waive the option for a defiicency judgement, as they had the position that should the home owner get any compensation from being a party to a class action lawsuit, they felt that the funds should go…</p>
<p>Hi Nelly,</p>
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<p>I did get a short sale approval with Space Coast on a home that had chinese drywall as well. While the loan was not an FHA loan, they had no issue with the existence of the chinese drywall, as the liability does not go with the lender. It took some doing to get them to waive the option for a defiicency judgement, as they had the position that should the home owner get any compensation from being a party to a class action lawsuit, they felt that the funds should go to them to offset their loss. We approached the bank with proof of the condition of the home with a full inspection report, and reiterated the home owner's financial circumstances. We also provided two estimates of the cost to remedy the condition of the home and were able to show that the cost to remedy far exceeded the current value of the home.</p>
<p>Maybe the buyer can have an attorney draft a Hold Harmless Agreement releasing Bank of America, FHA and all other parties to this transaction. I would also suggest you have the file escalated to a higher level and have them reconsider your case.</p> xxtag:shortsalesuperstars.com,2012-03-25:3468065:Comment:2213432012-03-25T11:55:37.598ZBryant Tutashttp://shortsalesuperstars.com/profile/bryanttutas
<p>xx</p>
<p>xx</p> I would not be surprised if t…tag:shortsalesuperstars.com,2012-03-19:3468065:Comment:2201502012-03-19T15:06:20.518ZMichael Schneiderhttp://shortsalesuperstars.com/profile/MichaelSchneider
<p>I would not be surprised if this house did not foreclose, for lack of desire to acquire and because of potential liability upon ownership. Also, the FHA does not move quickly, even under normal circumstances.</p>
<p>Upon agreement by parties unrelated to you, you might be back in the game.</p>
<p>Regarding "FHA liability", their liability is for a loss sustained by the holder of the note, not from the house itself, so I think the FHA liability as insurer would occur upon accepting a short…</p>
<p>I would not be surprised if this house did not foreclose, for lack of desire to acquire and because of potential liability upon ownership. Also, the FHA does not move quickly, even under normal circumstances.</p>
<p>Upon agreement by parties unrelated to you, you might be back in the game.</p>
<p>Regarding "FHA liability", their liability is for a loss sustained by the holder of the note, not from the house itself, so I think the FHA liability as insurer would occur upon accepting a short payoff of the note. So, I think their liability is probably not mitigated by the buyer agreeing to accept the property "as in".</p> Yes, we have an attorney hand…tag:shortsalesuperstars.com,2012-03-19:3468065:Comment:2202212012-03-19T13:51:39.215ZNelly Flaquehttp://shortsalesuperstars.com/profile/NellyFlaque
Yes, we have an attorney handling our case and they have already identified who is liable regarding the Chinese Drywall. But as with most cases involving this type of matter it has been taking a long time and no one wants to claim responsibility. Most likely we will end up losing the home in foreclosure.
Yes, we have an attorney handling our case and they have already identified who is liable regarding the Chinese Drywall. But as with most cases involving this type of matter it has been taking a long time and no one wants to claim responsibility. Most likely we will end up losing the home in foreclosure.