Got a BofA 1st, Wells 2nd. Divorce not complete but is legitimate hardship. Anyone else in this position ever where the divorce wasn't complete? Can we still list and sell and get approved? Anyone deal with B of A on similar scenario--plenty of money to pay, but getting divorced and can't keep house.
What state are you in? I am in California. I have had several divorce situations. Since California laws prohibit lenders from requiring sellers to contribute, it is a little easier to get shorts done. Also, a divorce decree ordering the sale is helpful.
thanks for reply. Yeah, I'm in Nor Cal. Will check on decree.
Are you going HAFA on this?
I hope not. Why?
I do plenty of them. Not an issue. What is an issue is if only 1 signer is cooperative.
The financials should show that together they cannot keep the property. If you have something lopsided like husband walked and makes a bunch and wife is still in the place but cannot afford anything, the investor is likely to want a contribution or have a problem since on the average, they can afford to keep it. But I have never run into that.
What I do run into is husband walking and refusing to cooperate - no bank statements, etc. That's a problem. Then the only way I know of proceeding is a divorce and quitclaim from the one who skipped out. The divorce cuts the ties and the quitclaim allows the one left to fully deal with the short sale. The one who skipped is still on the hook for losses, but dealt with separately by the bank.
I have several like that now and one just got approved at Bank of America. One party named the other party of having an online affair, and neither live in the house because of it. Piece of cake. You don't need the divorce to be completed. The only problem is if one of the parties doesn't want to participate -- although, I've done them that way too at B of A. You just build your case. Each is different.
I have a new one this week in which one party is on the deed and one is not. The one that is not on the deed is on the loan and the other is not on the loan. This will be fun.
Thanks everyone. Turns out, if you see my post elsewhere, that B of A saw this post and had a rep call to address the question direct! There I am in the pet food store and b of a is ringing my phone!
She said easier with a divorce decree or finalized divorce if Freddie or FHA is the investor---they can be strict. But other investors are easier.
Thanks all for your replies. My client wanted more feedback, and now I certainly have it!!
I do! House is in VA. Wife QUIT-CLAIMED the deed to the husband and moved to TN. Husband in military transferred to Djibouti, Africa.
Two MONTHS after submitting all the paperwork, BofA says they won't accept the electronic signatures. A few days ago I got several emails with little nitnoid stuff like the Servicer and Loan# wasn't on the RMA, my lic and jurisdiction were not on the contract, wife's name is not on the contract, husband's name is wrong, etc.
a- wife's name is not on the contract because she is not on the deed. But they want me to add her onto every page of the already-signed contract. (This is illegal.)
b- husband's name is NOT wrong, its exactly the way it is on the deed, yet they want me to change it to the way THEY want it.
c- they no longer accept electronic signatures which means that I have to print out 30+ pages of contract, write in all the changes, fax it to the buyer's agent who will then fax it to the buyer who will sign and fax it back to the buyer's agent who will then fax it back to me, then i have to fax it to the husband to initial and sign, who will then print it out, sign and fax it back to me and then i have to fax it to the wife, who will sign and fax it back to me. That's about 8 different times it will be faxed and I'd be willing to bet that after all of that BofA will tell me they can't read it! Its ridiculous!
d- my solution is to provide a notice or addendum to the contract adding her as an additional seller, even though technically she's not, i just want to push this through.
Please don't tell me to escalate this, because this IS the escalation department!
@joebeauchamp, not sure what you mean by the bank dealing with them separately, but that's not how its going in my situation, its exactly the opposite, they want me to put the wife on the contract AND the HUD even though she's not even on the deed! I have two cooperative sellers, thank God, both of them want to go forward, although there has been some foot-dragging, but still, it makes NO SENSE what they want me to do.
@joebeauchamp, they just told me that we have to "go back to the way it was at origination" in order to get to closing. In other words, they told me that the husband has to put the wife back on the title or it won't be approved. So that's that.
You will frequently run into someone who feels it must be done his way. What do they do when a signer has died? Insist that you bring him back from the dead?
A big problem with dealing with banks for short sales is that the investor does not have any obligation to do a short sale. He can say "never" or only if everyone wears red toenail polish - there is no law - a short sale is "out of the goodness of his....uh...heart?".
What they demand will depend upon the rationality of the person you have gotten to, etc. A quiteclaim deed is legal. The bank has NO right to say that the current owner is not the current owner - but that is what this person is trying to tell you. (If it were not a short sale, the sale would go through with just the 1 signature because only the 1 person has the right to sell it.)
Don't look at the negotiator as someone who has THE BOOK and knows EVERYTHING. They are frequently just someone with a guideline and someone beating them over the head to move files from the left side to the right side of their desks regardless of how. And he is probably looking to someone who has been there 6 more months as the supreme authority when he asks a question.
When you realize that much of the time they are flailing around and just trying to get files out of the way, I think it gives you a better grasp of when and where to tweak things to get the job done.
Great post Joe! Plagiarizing it on my blog. :)
Barbara--I may need that title company reference!