Bank of America Refusing to Clear Up a Break in Chain of Title
Hi, All--
I have a short sale ready to close today with BofA. Short sale approved, funds wired, etc... except for one problem.
The title company decided to let me know last Friday that they can't provide a title policy (and we can't close) until Bank of America provides a missing Assignment of Mortgage for one of the many times the mortgage has been transferred from one lender to the next.
Bank of America says they don't have to provide it, and they're not going to provide it. This is the response they've given me:
"Bank of America is the servicing agent for the investor who owns this loan. We have confirmed that we have the authority to approve this short sale. All of our documentation is considered proprietary and cannot be provided to any third parties. This following is the only assurances that we can provide the title insurer. We as the lienholder/ servicing agent will appropriately and properly release the deed of trust/mortgage (upon receipt of funds in compliance with our approval letter and all subsequent communication in conjunction with the short sale) and any pending litigation for the foreclosure of said deed of trust/mortgage. This may include any supporting documents required to properly release the deed of trust/mortgage and foreclosure actions therein as required by law of the State and County the property is located within. I hope that this will resolve the question however if it does not please let me know so that I can cancel the short sale approval."
The title company isn't satisfied with this; they want an assignment of mortgage to be filed.
Any ideas?
Thanks in advance.
Replies to This Discussion
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Permalink Reply by Patrick James on
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Is the original mortgage a MERS mortgage?
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Permalink Reply by Jennifer Scott on
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According to the title company, the mortgage was to MERS for Countrywide, then an Assignment of Mortgage was done in 2010 from MERS for Countrywide to U.S. Bank National Association; then in 2011 an Assignment of Mortgage was done from MERS to Bank of America. The title company wants an assignment of mortgage from U.S. Bank to MERS or to Banc Home Loans to clear up the break between the other two assignments.
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Check if it's MERS mortgage! Oh and find a new Title Company they should be able to have enough documentation to close a short sale and should not be standing in the way. This also should have been identified as a problem prior to 11th hour of a short sale closing. Seems they dropped the ball and should fix it.
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I totally agree about the late information from the title company. The buyer's agent is (rightfully) PO'd that she didn't know about this before... but then again, so am I.
This title company has been very good to me in the past, but this time- not so much.
Ah, I love short sales! :-)
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Permalink Reply by jacqueline lee on
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I closed a couple of short sale deals with one title company with a big name in TX and they almost ruined our closings by demanding things that the banks refused to do as well as asking the Realtors do all the closing related work including getting the final HUD approval for closing. Not to mention putting back the items on the final HUD that the banks removed for approval. I've closed many many delas with different attorneys' offices in FL and never once had that kind of problems. So it really matters who you pick for short sale closings - not all of them know how to handle short sale closings.
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Permalink Reply by Smitty on
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Yes Uilani De Motta is right. If it's a MERS loan, the title co can log on and see who services it. It may not satisfy them, but it did aid me with a similar request from a mom and pop title co
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Permalink Reply by Kevin - Greenville, SC on
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Don't rely on the information contained on the MERS website. It is not 100% accurate.
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Permalink Reply by Pattilynn Guilford on
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Find another title company and explain the situation ... perhaps different underwriters will make an exception
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Have u checked servicer id yet?
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Permalink Reply by Elvira Quiray on
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Had the same problem with one of my short sale transaction with BofA. Fortunately, we close real estate transactions using lawyers. BofA was not helpful at first, but when the lawyers talked to the closing department, they listened, and produced docs showing assignment papers. We closed after that.
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Permalink Reply by Shel-lee Davis on
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Sounds like the right time to interview alternative title companies. I have had to change title companies during this down economy because the original company I worked with almost tanked a couple of short sale deals with similar last minute underwriting demands. Too bad you are not in California, I would turn you on to my title rep and officer.
Also, sounds like time to escalate at B of A. Tweet the help desk! This is a situation that would cause problems for them in a foreclosure also. Once they "get" that, they will most probably get you the information you need. Never accept NO for an answer, when you KNOW it is the wrong answer.
Good luck. Shaking things up usually results in the right stuff falling out and the deal closing.
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I did tweet them, and unfortunately, the help team got the same answer I did, which is basically "we ain't doin' nothin."
The BofA closing officer claims that this title issue won't be a problem at all for BofA in a foreclosure, which sounds like BS to me.
And even though I've always liked this title company, I have no problem jumping ship if they can't get the deal done.
I really appreciate all of you Superstars' help. I'm still working at it and trying to rattle the right cages to make this thing work.
Does anyone have a good contact at BofA who might be able to help with this?
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