Replies to This Discussion

Permalink Reply by Gunnar Jonsson on May 23, 2010 at 3:26am

Anna,

Although BofA do not allow the substitution of a buyer in a current deal, they will "Fast-Track" the new buyer. Here is how I do it:
1. don't tell them (BofA) that you lost the old buyer until you have a firm new deal on hand
2. make sure to email the team leader with cc to the VP ( DO NOT EMAIL THE NEGOTIATOR) on the deal, explain the situation and request a "Fast-Track" ones you enter the new deal.
3. the team leader will then monitor the new deal (now you have a new negotiator) and the deal will go back to same status as far as completeness as the old was in when you canceled it.

All you lose is about 1 week of time

Good luck

Gunnar in Huntington Beach, CA

Permalink Reply by Anna Boyd on May 23, 2010 at 3:49am

Thank you Gunnar! Fantastic.

Gunnar Jonsson said:

Anna,

Although BofA do not allow the substitution of a buyer in a current deal, they will "Fast-Track" the new buyer. Here is how I do it:
1. don't tell them (BofA) that you lost the old buyer until you have a firm new deal on hand
2. make sure to email the team leader with cc to the VP ( DO NOT EMAIL THE NEGOTIATOR) on the deal, explain the situation and request a "Fast-Track" ones you enter the new deal.
3. the team leader will then monitor the new deal (now you have a new negotiator) and the deal will go back to same status as far as completeness as the old was in when you canceled it.

All you lose is about 1 week of time

Good luck

Gunnar in Huntington Beach, CA

Permalink Reply by Sherry Wheeler on May 23, 2010 at 3:53am

I say a boycott is in order. For the most part we pay their salaries. Maybe they would be a little more concerned if they started losing their jobs as they constantly make us lose our closings. Sherry Centosonit just told me on 5/19 if they walk they walk, this is the process and if they won't wait BOA has 120 days to try to sell the property, if you lose them you lose them. When we "just lose them" has anybody figured out how much money we "just" lost? While they draw their paychecks we continue running up expenses while they don't care as buyers walk?

Permalink Reply by Anna Boyd on May 23, 2010 at 4:54am

Sherry,
I've thought often that if they had to work on commission, the way we do, it would be a whole different ball game. I believe the employees should be incentivized for each short sale file they close successfully. Money talks.

Sherry Wheeler said:

I say a boycott is in order. For the most part we pay their salaries. Maybe they would be a little more concerned if they started losing their jobs as they constantly make us lose our closings. Sherry Centosonit just told me on 5/19 if they walk they walk, this is the process and if they won't wait BOA has 120 days to try to sell the property, if you lose them you lose them. When we "just lose them" has anybody figured out how much money we "just" lost? While they draw their paychecks we continue running up expenses while they don't care as buyers walk?

Permalink Reply by Michael Schneider on May 23, 2010 at 5:00am

And, btw, the previous appraisal/BPO will probably be accepted, if it is within 90 days.

But, on the broader point of the difficulties of completing short sale transactions...

I never know, whether the issue is the Servicer, the Investor, or the Insurer.

Most of the BofA short sales I've worked are BofA Serviced only, the Investor is Fannie, Freddie or a Trust, or FHA/PMI insured. I think only a couple of the 2nd are actually on portfolio of BofA.

Is the Investor/Insurer sitting on a FMV offer, while BofA as the Servicer follows their directive, or lack thereof? Or is BofA not exercising their delegated authorization in the Agreement with the Investor/Insurer?

I'm more inclined to think that the Investor is using foreclosure to manage their risk of fraud.

("If I force the foreclosure, it may cost me $30K, but as least I know the property will sell at FMV.")

Any insights on this?

Permalink Reply by Katerina Gasset on May 23, 2010 at 5:09am

Don't tell them you lost the buyer. When you get a new buyer follow Gunnar's instructions.

Permalink Reply by Sherry Siegel on May 23, 2010 at 3:22pm

I like Gunnar's instructions. What's NOT clear here is whether you are working the deal on Equator, or working the deal directly with BofA. It's my understanding that when Equator assigns a task, the task also includes a deadline. If you don't have another buyer ready to step into the gap, the deal closes. So, are we talking Equator, or direct with BofA? Thanks in advance for clarification.

Permalink Reply by Rachel Diedrich on May 24, 2010 at 6:32am

You could not be more right! Their process is soo inefficient!!

Permalink Reply by Sylvia Barrenechea on May 25, 2010 at 2:21pm

Thanks! I feel a little better now. When I call customer service, they tell me I need to start all over again and that it could take 45-60 days!!! I'm going to follow your advice because it is a completely ridiculous policy- to have to start all over when all the numbers are still the same.They are saying that I need to have the borrower call in again to give him a new login. And get this...he CAN NOT use his e-mail address if it was used for the other offer. He needs to come up with another one. Wont they be able to use his same financials?

Gunnar Jonsson said:

Anna,

Although BofA do not allow the substitution of a buyer in a current deal, they will "Fast-Track" the new buyer. Here is how I do it:
1. don't tell them (BofA) that you lost the old buyer until you have a firm new deal on hand
2. make sure to email the team leader with cc to the VP ( DO NOT EMAIL THE NEGOTIATOR) on the deal, explain the situation and request a "Fast-Track" ones you enter the new deal.
3. the team leader will then monitor the new deal (now you have a new negotiator) and the deal will go back to same status as far as completeness as the old was in when you canceled it.

All you lose is about 1 week of time

Good luck

Gunnar in Huntington Beach, CA

Permalink Reply by Anna Boyd on May 25, 2010 at 2:30pm

Hi Sylvia,
That's the insanity of it all. You can have identical offer, identical net to them and they would rather waste another 5-8 weeks of someone's time. In fact, because this inefficiency on their part, there was one property I had that had no less than 6 buyers. BAC okayed each one - day late, dollar short. Has they approved the first solid buyer we had in a timely fashion they would have made $40k more than fair market value now.

Beware - I feel BAC has properties that they know in the "backroom" will make more if they short sell or if they foreclose. Thus, we hear great tales of quick responses and closes sometimes - and nightmare deals other times.

Sylvia Barrenechea said:

Thanks! I feel a little better now. When I call customer service, they tell me I need to start all over again and that it could take 45-60 days!!! I'm going to follow your advice because it is a completely ridiculous policy- to have to start all over when all the numbers are still the same.They are saying that I need to have the borrower call in again to give him a new login. And get this...he CAN NOT use his e-mail address if it was used for the other offer. He needs to come up with another one. Wont they be able to use his same financials?

Gunnar Jonsson said:

Anna,

Although BofA do not allow the substitution of a buyer in a current deal, they will "Fast-Track" the new buyer. Here is how I do it:
1. don't tell them (BofA) that you lost the old buyer until you have a firm new deal on hand
2. make sure to email the team leader with cc to the VP ( DO NOT EMAIL THE NEGOTIATOR) on the deal, explain the situation and request a "Fast-Track" ones you enter the new deal.
3. the team leader will then monitor the new deal (now you have a new negotiator) and the deal will go back to same status as far as completeness as the old was in when you canceled it.

All you lose is about 1 week of time

Good luck

Gunnar in Huntington Beach, CA

Permalink Reply by Anna Boyd on June 4, 2010 at 12:56pm

Gunnar,

We followed your instructions to the letter and pissed off the negotiator who didn't get copy of the email as you suggested in your "how to fast track" answer and they wiped out ALL the seller information and we have to absolutely start from scratch!

Maybe you have a better answer? The suggestion you gave has now cost us additional time.

Permalink Reply by Ben Benita on June 4, 2010 at 4:15pm

Here is why short sales take SO long and, THE NUMBER ONE REASON FOR SAME:

B of A is known as a "loan servicer", whomever the Seller writes his/her check to is the "loan Servicer".

"Servicers" get paid to "service" loans on behalf of Investors, whomever actually put up the cash for your Seller to buy (could be Fannie, Freddie, the ShortSaleSuperStar Pension Fund, etc. I will leave CMB speak out of this to avoid confusion, but, most loans were sold off as securities and that only complicated matters further...no real need for you to understand THAT process too).

Servicing includes sending monthly statements to property owners, harassing property owners when payments are missed, coordinating escrow payments, etc.

Typically Servicers earn 1/4 point for servicing loans that are "performing", where payments are made on time, and, 1/2 point servicing loans that are "non-performing", i.e., your Seller is at least 30 days late.....
YEP, that's right, THEY EARN DOUBLE THE FEES ON LATE LOANS.....are the light bulbs going off yet?

Doing some basic business, (and you will RARELY see me defend ANY Servicer) exactly how hard do you honestly expect B of A to work in order to get these done quickly, when success, i.e, a closed short sale, to them means NO MORE CASHOLA!!!!
Good-bye getting paid DOUBLE the servicing fees.....if they drag your short sale out for months and months, more cash in their pockets and for their shareholders......though they appear to be making foolish decisions, like starting you over when a Buyer changes, in actuality, it is VERY SMART from a business perspective.

To get around this COMPLETE BS, I can not emphasize enough how important it is to find out who the investor is on the note.....armed with this information, if you contact the investor on the note with a fax or e-mail and something like:

"Dear Investor,
Do you realize how B of A is taking total advantage of you and over-charging you for Servicing fees...."

Get THAT message in front of the right eyes with the Investor and THINGS GET DONE!!!!

We first did this with a B of A short sale, similar to the above only the SAME Seller. B of A told us they needed an offer of $362,000, we went back to the Buyer, Buyer agreed to come up from $360,000 to $362,000. I faxed in the addendum stating same, and:
THEY TRIED TO MAKE ME START THE WHOLE PROCESS OVER....oooooopppppps for them. We got NOWHERE, even with our higher up contacts which just irritated me to no end.
NEXT MOVE -- we found out the investor on the note was Mellon Bank/Bank Of New York (we have several tricks for getting this information).
After some hours on the phone, I found out who was in charge of the Board of Director Meetings (that's how we roll), and when she found out what had happened and that B of A was TRYING to charge them unnecessary servicing fees......OOH LA LA....WHAT A BEAUTIFUL THING!!!!

B of A changed their pace in about 48 hours time (after the girl at Mellon Bank/Bank Of New York contacted them) and we had a new acceptance letter in hand, again, within 48 hours of contacting the Investor....

no games and no bull______ ....sorry, I get FIRED UP with this stuff.

There ARE ways to make most anything happen, in short sales and in life....hang in there....

Sorry the above is so long......I wish everyone all the best and hope the above helps!!!!

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