Hi all,

 

I'm new to the site.  I'm a California attorney and real estate broker specializing in short sales.  For a bit over 4 years we have been dealing with short sales, modifications, litigation and all manner of foreclosure prevention.  I have been fairly aggressive with banks when they do the random, inexplicable and ultimately harmful things they do. 

Recently I logged into equator to find that every single one of my BOA transactions were gone.  When I called to see what was going on none of the negotiators on the files were aware that they were closed and had no idea what happened.  Three of these files had written approvals on them and on one of those the buyer had already signed loan docs and we were due to fund and close the next day.

Needless to say I was furious.  This is not my first rodeo so I began contacting my various contacts.  Many of them could find no information as to why they were closed.  The ones that could either found notes in the system saying a file was closed as a result of the internal review department determining the file was non-compliant.  How's that for being specific?  Other people I talked to were able to see the exact reason, but said that they were not allowed to tell me why.  After many threatening letters and email to Brian Moynihan on down, I was contacted by Joseph Quinn, assistand vice-president of the internal review department.

Mr. Quinn began to list off various reasons why my files were closed.  They included:

1) They did not like language I had on my Letter of Authorization (this was a file submitted prior to BOA's own Authorization letter);

2) On one file where we had an approval and then subsequently lost the buyer, I put it back on the mls with language referring to the fact that we had short sale approval and the approved price.  Mr. Quinn informed me that this was against BOA's rules. When I asked where I could find that rule, he informed me that it was not his job to help me with that.

3) I had files that we asked for legal fees for our ss negotiation efforts.  I have many listings of my own, but I also handle negotiations for many other agents here in San Diego.  All our negotiations are done through my lawfirm, not as a real estate agent.  Of course, I told him that the negotiator or investor usually counters that out, but that was a transaction per transaction decision on their part.  He told me BOA prefers if I didn't ask for it anymore.

There were others that were just as rediculous, but this note is already getting too long.

I am curious who else has experienced anything like this.  ie.  files closed by BOA without notification, warning, or an opportunity to correct the situation...especially after written approval was already given.  I imagine it's fairly common.  Depending on the situation I could imagine substantial damages:  Buyers who relied on the approval and spent money on inspections, appraisals, drawing docs, moving expenses, etc... 2) Sellers whose property went to foreclosure because the buyer walked; Sellers who already moved out of their property in anticipation of the property closing in a day or two; Sellers who incurred many more months of HOA expenses because the deal ended up closing, but it took another 3-6 months.; 3) all those commissions lost by agents on both sides of the deal.

Please respond to this thread or email me personally if you have had similar situations or know someone who has.  Thanks in advance. 

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I have not experienced it but know a few agents that did a few months ago,  they lost all of their files but they were able to get them back in equator after a few days.

Did Quinn say he would not reopen the files?

What was wrong with your authorization?

Why does BofA think they can make MLS rules or dictate to you what you put in MLS? they do not own the property.

Wonder how many others here will respond that it happened to them?

I can tell you exactly what happened.

I personally sat down with a short sale mitigator that works for BofA short sale department. A few examples of why they are just cancelled:

1. There is PMI on the loan and it will be too much work for the mitigator to submit for the claim.

2. When they input the info on the deal, it comes up with a negative mitigation factor meaning it is better for them to FC. So the moron mitigator can just delete it.

 

There are many more reasons and they are not isolated to BofA. Excallating the file and developing executive level contacts (the later of which is not easy since they move departments quite often) should do the trick.

 

We have been operating in the space for over 4 years. But we did start with just one file back then so "make it happen"!

 

 

 

Good advice for sure Eric.  Building a solid relationship with someone on the executive level has certainly made my life easier for sure. 

The only thing that has me wondering is why would they cancel a sale that was just waiting on funding from the closing?  that is the one that makes no sense to me.

Thanks for the replys guys.  I would love to respond to your questions Jeff, but frankly I have the same questions as you.  After speaking with Quinn for about 45 minutes he informed me he would look into the one file that was supposed to close this past Monday to reinstate it.  I have since left him multiple voicemails and emails as well as to others in the Office of the President with no response.  As I mentioned I am an attorney and I have language on my authorizations that provide protection to my firm as the negotiator as well as all other parties involved in the transaction.  I have never had BOA reject the language, although now they won't accept any authorization other than their own.  Quinn said the language raised red flags indicating the buyer could be an investor or this could be a flip.  Of course my responses were 1) so what if it's an investor and so what if it's a flip as long as he is not in contract with a new buyer now and they comply with the 30 day hold period, and; 2) how can you justify closing a file based on an "indication" of anything.  How about a phone call, email, task informing me that you're concerned with something to let give me a change to explain, clarify, fix it, etc... BEFORE you close.  What's with the ready, fire, aim?  I mean my authorization is not that big of a deal.  If they just said, hey we don't like the language we need you to revoke it and provide us with one of our standard letter's of auth I would of.  End of problem.

As far as the MLS rules, that's one that really has me pissed.  Of course their reasoning is that by putting in the amount the bank is willing to take it prevents buyers from coming in with higher offers.  Stupid. SS already elimnate whole pools of buyers who don't want anything to do with them because of the time and problems (such as this one) that come with them.  By letting them know we had prior approval it takes a bit of the risk out of the equation and opens the buyer pool up.  Plus, if the approved amount was low, then buyers will want to take advantage of the "deal" creating a multiple offer situation which inevitably allows a bidding war, ultimately resulting in a purchase price above the asking price.  And finally, if this is a problem, then why did your negotatior accept my approval in the first place, accept my mls listing page, and give me a written approval at that purchase price?  Don't punish me or my client (which is their client too) or the buyer because your not happy with your employees decisisions.

Clearly, I'm so pissed about all this.  So sorry for the rant.

I feel your pain my friend, the rant was well warranted.  Good luck.

Eric.  You are right that those are many of the "secret" reasons why the banks deny short sales.  In my case, I think there is more too it.  I am definatley on their radar.  They closed all my files in one day.  Quinn basically told me it was a cumlitive effect of all the "red flags" on my files.

My understanding is that the internal review team did a major sweep and they also kicked out many files where either you're not licensed, didn't correctly put your license number in the correct field in your account or simply are not the listing agent listed on the file.

You mentioned you work shorts for others and I can bet that's exactly what it was. Now for the ones that are yours not 100% understanding why they would cancel those but one insider said something to the effect that there is a new VP (did anybody else hear this) and he came in and wiped a bunch of files just like that.

Letters were sent to the homeowners stating the reasons. But you would never know unless you called. I know they also have been having a lot of trouble with equator.

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