Bank of America pocketing money in offer

I'm absolutely astonished and desperately need some help.  BofAm has the 1st mortgage on an the short sale -- the offer is enough to pay 100% of the 1st mortgage and at least 60% of the 2nd (held by Chase).  The BPO was completed nearly 4
weeks ago -- but nothing was being moved forward by Chase, and we couldn't figure out why. 

Finally we found out this morning that, even though BofAm was being paid COMPLETELY off with $50-60k available to pass on to Chase, they were only passing on the traditional $3k Chase.  Does that mean that BofAm is pocketing the rest of the money in the deal?! 

What can we do to get this moving?  Any phone numbers or contacts that anybody can pass along?  The deal needs to close by 6/30, not for the tax credit but for lease issues. 

Any suggestions on what can be done to move things along?

Any thoughts/advice would be very helpful.  Thanks in advance!

Views: 56

Replies to This Discussion

Permalink Reply by Jeff Payne on May 11, 2010 at 8:08am
That does not make any sense at all. If you have enough to cover the first, you do not have to work a short sale with them, the second is the one that you have to work on. BofA can not stop this sale if they are being paid in full. They can not keep more than what is owed on the loan.
What am I missing here?
Permalink Reply by Darla Maddalone on May 11, 2010 at 8:19am
Sounds like a strange situation....but possibly they are keeping back interest and payments and any other costs they can come up with?
Permalink Reply by John Edelman on May 11, 2010 at 8:21am
You don't even really need to deal with B of A on this property as a short sale, if what you are saying is correct. They should be receiving a full payoff and so it will treated with them as just a standard sale - unless you need to get them to postpone a foreclosure date.

Here is what I would do: If you haven't already, order a payoff good through the projected closing date from B of A. Once you have that, have your title company prepare or verify a HUD1. From that, it should show a full payoff going to B of A, and after all of the other transaction related costs are taken out, there should be left an amount that you are offering to the 2nd (Chase) for their release of lien for the short sale. Then deal just with Chase - as they are the only ones being asked to accept a short payoff for their release of lien.
Permalink Reply by Bryant Tutas on May 11, 2010 at 8:45am
Yep..Listen to John. Bank of America should have never been brought into this transaction to begin with. They have ZERO say so in this transaction. Order the payoff and close the deal.
Permalink Reply by Lonnie Hunter on May 11, 2010 at 9:15am
Thank you, everybody. How long would this scenario take -- would it be likely for a closing to happen by mid-June (before the lease is up)?

Again, thanks --
Permalink Reply by John Edelman on May 11, 2010 at 1:35pm
How far have you gotten with Chase?
Permalink Reply by Gary Carpenter on May 12, 2010 at 3:38am
Why are you negotiating a short sale with BoA if their getting completely paid off? This isn't a negotiation, just a payoff. All you need to do is call BoA and get a payoff and then negotiate with Chase on the second. You're giving BoA too much respect. Drop whatever negotiation you have with BoA and focus everything on Chase to get negotiated out and then close the deal. This looks like you're making it way more complicated than it needs to be. Just call Chase up and send them a HUD that reflects what they get after BoA is paid off and you're home free. Will take some time if you don't already have something working with Chase, but you should only be 30 days out.

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