NEW BOFA Letter of Authorization... only licensed agents or attorneys can be authorized on accounts now? That rules out an assistant being authorized to follow up on even mundane "Did you get the fax?" calls... escalating with BOFA

See link: http://realestateagent.bankofamerica.com/content/documents/tpa.pdf

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What a mess

Still trying to wrap my head around this new authorization.  It has no affect on my business since I'm the only one that talks to the lender but I can see where it may pose problems.

It was an immense pleasure meeting you at the symposium Bryant. Have you seen the new Disclosure Form to be signed by all parties in the transaction whereby real estate agents/brokers are going to be prohibited (effective April 14, 2012) from buying a short sale even with Full Disclosure which has not been a problem in the past.

What a mess...How would it help BOFA?

The cruise was a ton of fun!! It was a pleasure meeting you as well. It sounds like BofA wants all complete arms length transactions. I have no problem with hat at all.

With Full disclosure in the purchase contract that the buyer is a licensed agent or a broker, why should it be a problem to BOFA. I know several agents in my office have bought short sales in the past after no offer came from anybody else for weeks. Not a good idea at all. There must be disclosure, of course, as has been the case.

I've already started using this new form and there's no change in my business so far.  In my office, only people who are licensed work on these files so it's no big deal for us.  I actually prefer this new approach as it gets rid of those big "negotiation mills".  I actually think something much bigger may be coming after April 14th that they haven't told us yet - - - - - or have they?

 

With the new principal write downs, Deed-in-Lieu to rental conversions and some other options in play, maybe short sales will be scaled back in a big way.  I certainly hope not since that's 99% of my business but we never know.

 

 

Thom

         I personally am seeing more and more loan mods with huge principal reductions being done here. They are primarily the equity share programs, but the people love them. My last was a family outstanding balance $540K reduced to $187K payments reduced well over $1500 per month and interested reduced to 3% for life of the loan. 

I told them they should have kissed the bank on the lips for that one.

I am also seeing hugh principal reductions up to 200K over the last couple of months.

Hi Paul -

 

Interesting scenario - I actually did a BPO late last year - originally purchased for $1MM in 2006, owner ran that debt up like an ATM to $2.1MM - actual value now about $1.2MM.  I never discussed value with the owner and of course I gave him my card to identify myself. 

 

Recently he e-mailed his "modification" (actually I would call it a restructring).  He made 3 months of 50% reduced payments, followed by a one-time payment of $125,000 which is now being followed by 12 months of the reduced payments - if all 12 payments are paid on-time, the debt is reduced to $1.1MM, all deficiency forgiven and the new payment is amortized over 30 at 3% for 5 years, then 4% for 10 years, followed by 5% for 15 years.  And, to top it off, this is a SFD investment property where he has never lived and has always been a rental and he can refi anytime he wants after the restructure is complete.

 

He's doing he same thing on another property in the same area at pretty much the same numbers......

 

If people are creative, they can get what they want.

  If you think about it though. If you deal with BOA and not the investors directly everything should go through the Equator system. How would they know who is logged in for you? Plus if the new rule gets in place they will need to get us a decision within 30 days or be fined. So I think they are just doing more to streamline the process.

Absolutely right! On Equator, how does BOFA know who is logged in under your user name. Assistants and closers do it all the time.

I expect with the new version of Equator, there will likely be a pop-up screen where we have to "certify" we are the person on the Equator account and attest to being licensed in the state of the property.

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