B of A FHA /HUD short sale help
My client submitted for a loan mod SEVERAL months ago to get help with her loan. They referred her to short sale in May and since it was FHA it was supposedly going to go through their ATP and then pre-approved short sale price (PFS) program.
So Bank of America (as we hear so often) delayed, and had her send and resend, and delayed some more, and stalled, and nothing much happening, though the client directly escalated several times to the rep's manager.
Fast forward to now, with a good offer in hand and waiting for this to move through they file for the foreclosure date (which is this Friday). Now B of A says FHA will not consider a postponement since she is now more than 13 months delinquent.
Kind of a so sorry, so sad, but that's the way it goes kind of thing. We escalated to the president's office with B of A as we felt it really was the mishandling of the file for months by B of A that got us to where we were.
If Bank of America had handled it expeditiously in the beginning, we'd have had it sold and closed by now, not looking down a foreclosure date with nowhere to go due to the 13 month rule.
So, last hope is to escalate to HUD w/a complaint against Bank of America's handling of this file that got us to this point.
Client feels it was almost purposeful to have her jump through the hoops just to have time run out and then claim "nothing we can do."
Any advice or contacts at HUD?
Replies to This Discussion
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Permalink Reply by joe beauchamp on
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On one of these forums recently, an agent got HUD to stop the foreclosure sale - BofA ignored it. I don't know where that is now. I find it insane that BofA can tell it's boss to take a hike, they are going to do whatever they want, but there it is.
So, you can get HUD to help, but don't think just because they are in charge that BofA will do as told - just a warning. HUD 877-622-8525.
You might get some good tips from the agent who posted that message. - I just looked and found it - listed below:
( Comment by Dean E Eshelman, CPA, CDPE, IRES on July 19, 2012 at 4:51pm
FHA short sale, Missouri. Appraisal 62,500 Contract 60,000 no seller concessions. Foreclosure date 7/18. 7/17 HUD sent email to halt foreclosure and proceed with PFS. Emailed and called BA negotiator, no response. Twitter help. No response. Escalation email. No response. Called foreclosure attorney and they did not have any notice and proceeded with sale. Emailed HUD - reponse BA denied postponement anyway and foreclosed. HUD sent email to BA - "Rescind the sale and proceed with PFS. If sale is not rescinded immediately a claim block will be place on this loan" No one at BA will respond to any of my calls/ emails. Suggestions?)
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Permalink Reply by Dean E Eshelman, CPA, CDPE, IRES on
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Same thing happened to me. Dual tracking at its best. Something prohibited by consent decree in April. On mine I called HUD and got a ticket number and faxed third party authorization. Once I got a ticket number, it takes 48 hours for a negotiator to call you back. Answering the phone is a must or you will have a difficult time. Be sure negotiator has the FHA appraisal, and that you have appraisers contact information (my appraisal was a good number, so know the number-talk to the appraiser if you don't). That is what happened to me is BofA had the appraisal for three weeks and never forwarded to HUD; BofA denied SS based on Zillow values!! Fortunately I told HUD the appraisal value and they said they did not have it. HUD contacted appraiser, issued email to BofA sending copy of appraisal and told them to issue PFS. BofA foreclosed the next day and emailed HUD that the request was denied. I appealed to HUD and HUD emailed BofA that a claim block was put on the loan and told them to immediately rescind the SS. So that is where we are now. Contacted the twitter team to bridge the gap to BofA legal. Supposedly foreclosure to be rescinded in the next 48 hours.This has taken a month so far and this group said to expect six weeks. Hope that helps.
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Permalink Reply by Cami Pinsak on
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B of A is NOT efficient with FHA.
I had one phase two FHA negotiator tell me she had never even see the FHA tips on B of As resource center...They don't even know what they're telling us to do!
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Permalink Reply by Catherine Myers on
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Update to my question. I found the email addresses for both the Secretary of HUD and the Acting Commissioner or FHA and wrote to them directly. Just went to the top. This was about 6pm Pacific time. Sale was next day at 1pm. I had an email from HUD before I even woke up with a case number and assigned rep. Rep called me by 10am telling me sale stopped and B of A told to restart short sale. I got a "tail between their legs" sickeningly sweet email from our previously rude and abrupt B of A negotiator letting us know she's so pleased to be reopening the short sale for us. Umm, ok.
So now our HUD rep will follow up with me and B of A weekly to confirm we are moving in right direction.
So far so good! Sometimes the "little guy" gets attention.
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Permalink Reply by Judith Sailors on
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HUD National Director. I would email him about this issue. Good luck
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Permalink Reply by Jim McCormack on
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Is this still Matt Martin's email address at HUD? If not, what is it?
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Permalink Reply by TOP END Properties on
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Expect all your BOA / FHA deals to take a year. Expect them to 'drag it out' and blame you for processing errors. You need to understand that it is NOT you, or your paperwork. They have designed their fha servicing system around sucking out millions of dollars by extended their servicing terms on FHA loans by 3-8 times what they should actually be. It's essentially the biggest insurance fraud in US history .. good luck stopping it.
Obviously you will have to do multiple escalations, but the best thing you can do is prepare yourself, the sellers and the buyers for a loooong ride.
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I posted a page on my website on how to dispute the Ocwen Hubzu Altisource Assisted Short Sale Program at: http://www.endingforeclosures.com/ocwen-assisted-short-sale-hubzu-r....
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