Replies to This Discussion

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on September 23, 2012 at 7:15am

Jen -

I guess I might be a little confused.... why would you sue BofA?  They don't own the property - they simply service the loan and provide an approval to accept less than what is owed to them.  This is truly just Debt Settlement.

Did you have an approval for both the 1st and the 2nd / HELOC with an expiration date?

Who asked the Buyer to contribute? Did BofA / RTR ask for a contribution?  That may have been illegal under SB458 & 931 - BUT - if you, the seller or the Buyer initiated that conversation to make up the difference, they are off the hook.

I suggest you tweet to @BofA_Help.

Other than that, I've begun walking away from transactions where the lender / servicer is uncooperative or difficult.

 

Permalink Reply by Jen Kwong on September 23, 2012 at 7:44am

Would sue BofA for breaching the terms of their approval ltr. They caused financial damages to buyer.

Yes, both first and second approval ltrs had deadlines. Neither had passed.

Listing agent asked for contribution. Couldn't close without meeting second's demand. Listing agent handled all the negotiations.

Thanks for responding.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on September 23, 2012 at 7:56am

Jen -

I'm not defending BofA here BUT - BofA has no responsibility to the Buyer what so ever.  In fact, they have no responsibility to the Seller - they only have a responsibility to recover the most money they can for whomever owns the loans. 

On who's request did the Listing Agent ask for a contribution from the Buyer?  Did BofA make that request or did the agent initiate that discussion? I understand the 2nd wanted more money but who directed it to be requested from whom?

As for BofA selling off the loan to RTR - the actual investor may have taken the loan away from BofA and assigned it to RTR because it wasn't moving fast enough.

As for your Buyer, they need to find another property and move on, you will never be able to sue BofA without spending Thousands of Dollars - 

You might speak with an Attorney and about placing a Lis Pendens on the property as a precursor to a lawsuit which will prevent them from selling the property, but you need to have a strong will, money, and the determination.

I think the one item the SELLER has in their favor is the actual short sale approval letter - it would be interesting to see if the lenders can collect on deficiency with the new laws in place preventing a deficiency collection after written short sale approval.

Good luck!

Permalink Reply by Jen Kwong on September 23, 2012 at 9:37am

Thanks for your insight. I realize it's a loosing proposition to go after a bank.

Permalink Reply by Jen Kwong on September 23, 2012 at 9:47am

Looked it up and don't think the Sellers can avail themselves of the recent anti-deficiency law. Short sale would have had to close and money tranfer.

Also, don't know who recommended the listing agent ask the buyer for contribution. I think that may have been the listing agent's idea when the demand letter came to the Sellers and they refused to put up any money.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on September 23, 2012 at 10:30am

You are correct - I didn't have the Bill in front of me at the time and I've now re-read it... Thanks

Permalink Reply by Short Sale Superstars LLC on September 23, 2012 at 11:04am

If the loan was service released you are probably out of luck in this situation. Click here for more info on what a service release is and how it typically affects a short sale when it happens during the process.

Permalink Reply by Jen Kwong on September 23, 2012 at 4:20pm

Thanks for the link. Wish I knew that before the deal fell through.