Bank of America / Fannie Mae Declined Even With Death of Co-Borrower
I just had a Fannie Mae short sale DECLINED even with DEATH OF A CO-BORROWER by Bank of America with this message :
Good morning, your offer has been declined for following reason. Declined. Hardship does not meet FNMA’s Imminent Default guidelines. Imminent default hardships must be as a result of a current situation such as death of the borrower or co-borrower, long term disability of a borrower or co-borrower, divorce or legal separation of a borrower or co-borrower, distant employment transfer/relocation including a permanent change of station (PCS) order greater than 50 miles one-way.
In fact, we uploaded the DEATH CERTIFICATE a few weeks ago and it is stated on the hardship letter. This seller is current, but that's ok per new Fannie Mae guidelines.
QUOTE from Fannie Mae effective Nov 1 :
Under the new guidelines, servicers will be permitted to approve a short sale for borrowers who have certain hardships but have not yet gone into default. Those hardships include the death of a borrower or co-borrower, divorce or legal separation, illness or disability or a distant employment transfer.
I am hoping there was just a serious error reviewing this file. I am awaiting the response from my three emails to the negotiator and one phone call.
Replies to This Discussion
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Permalink Reply by joe beauchamp on
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Yeah, well, the first time I ran into REDC maybe 8 mo ago, they insisted that the co-borrower sign the docs and wanted a P&L. The sole signer was an employed nurse - REDC didn't care - closed it because of these "missing documents". I submitted it again, it went to REDC again and they killed it again. Just waited for a buyer and started a regular SS - until we agreed to the final counter and BofA sold it to NationStar.. What a joy working "with" these banks..
I would resubmit - REDC clearly has some tech help with a few loose screws..
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Permalink Reply by Wendy Rulnick on
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I have just emailed a contact at Fannie Mae with the details of this Bank of America short sale and asked for clarification on DEATH of a Co-BORROWER criteria. I'll let you know when I get clarification from either Bank of America or Fannie Mae on this new FHFA policy and if the press release is factual.
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Permalink Reply by ElizabethWeintraub00697006LyonRE on
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You might ask REDC to close the file and then reopen it with DTS. Just switch the third-party vendor and work with somebody else. You can go to some of them directly, you know. You don't necessarily have to wait for B of A to assign the third party vendor to you. Service Link has been extremely responsive as well.
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Elizabeth - We might do just that. Thank you, good idea!
I am giving Fannie Mae tomorrow to respond. If they are going to just give the SAME response to this Bank of America short sale, it might not help. I do think there was a disconnect. It makes NO sense (or shall I spell it NONSENSE?)
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Update: Day 2 - I've escalated to the Bank of America Twitter team, who are sending the file to escalation contact in line of business. Further, I got an official denial letter today that makes no sense. It asks seller to contribute to loss. He had already agreed to do so, even though this is not in Fannie Mae's new guidelines due to DEATH OF CO-BORROWER. I have heard nothing back from Fannie Mae thus far.
Denial letter states: if the seller is willing to sign the deficiency agreement or contribute to the loss or have the buyer increase their offer; we may be able to reconsider the short sale. Please send us any updated documents for the short sale to be reconsidered.
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Update - Bank of America has assigned a top negotiator to this file, taking REDC out of the picture.
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