Vitals:
1st BOA balance: $502,000
2nd BOA balance: $60,000
Total balances: $562,000
Offer submitted $385,000 (and lucky to get that high)
Delinquent 2008 property taxes $12,000.
2009 property taxes paid.
BPO done. BOA accepted the 385k purchase price but after much haggling BOA is only willing to allocate $6,000 towards the $12,000 taxes, the seller is willing to bring $1,000 towards the property taxes, leaving $5,000 gap. The buyer is unwilling/unable to contribute towards the seller's property taxes and is willing to walk.
The problem: BOA is willing to close the file and send to foreclosure over the $5,000 gap to cover the 2008 taxes. The loss mitigator claims it's not an allowable closing cost.
My questions for the forum:
1. Have you been running into recent lender reluctance to pay back taxes?
2. How do I escalate this within BOA? They will have to pay the taxes anyway as an REO.
Thanks
Dave Halpern
Tags:
Look for names higher up the food chain. Contact Fannie Mae if this is one of their loans. Talking to the lower level people is a waste of time. I'm sure you'll find resources right here!
it's interesting that the county posted payment for 2009 taxes without the 2008 taxes being paid. I thought the oldest tax bill was always paid first. what state are you in?
I don't believe that BofA really cares.
They're likely just servicing the loan, so its not their loss if it goes into foreclosure.
In fact, I believe that they are conflicted. That Is, I understand that they get paid about twice as much for servicing a loan that is in default versus a loan that is current. So, the longer it takes, the more they get paid.
In any event, there is a WordPress Blog that provides BofA contact information. I believe the page is entitled "Bank of America Loan Mod Diary", The phone number they list for the BofA Office of the Chairman is 800-669-2443 x2773.
I recommend that you be prepeared with an estimate showing what the difference is likely to be in the net proceeds from a foreclosure vs. the short sale that you have submitted. That may introduce some rationality into the process.
I hope the above is helpful..
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