Can't go through Equator because it's a Government Loan? Help!
Well, nothing should surprise me with Bank of America.
I submitted an offer in Equator on 4/14. Made it into negotiations and thought we were just about done. The offer was accepted by the negotiator and was told that it would be sent for investor approval. I called today and was told that the negotiator made a note in the file on 5/11 that the file can't go through Equator because it's a "government loan." I am being told to fax in the whole package and then wait 20 business days to be assigned to a negotiator.
Any advice? This is ridiculous!
Replies to This Discussion
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Permalink Reply by John Edelman on
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When you say government loan - do you mean FHA?
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Permalink Reply by Joe Barnwell on
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They couldn't tell me.... I asked that very question and they didn't know.
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Permalink Reply by Sherry Wheeler on
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I have a FHA loan I've been wrestling with since 1/17/2010. When this is over I don't think I will take a B of A short sale again. Everyone should boycott B of A short sales. Without us they don't have jobs. Maybe then they'd get a better attitude?!?!?!! Obviously my time is worth zero to them & the way they conduct business is abusive.
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Permalink Reply by Steele V. Propp on
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Are you the listing agent? If you are, your seller should know what kind of loan they have. FHA or VA would be fairly obvious. What they might not know, of course, is if it were Fannie Mae or Freddie Mac. But that is simple enough for you to research.
https://ww3.freddiemac.com/corporate/
http://loanlookup.fanniemae.com/loanlookup/ -
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Permalink Reply by Tiffany Cloud on
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Same thing happened to me, but I didn't get as far as you did before they figured it out. It only took me about 3 days to get assigned a new negotiator and he actually called me, walked me through what he would need, and followed up with an email listing the requirements. I was a little dumb-founded to be honest with you.
Yes, you have to start over again, Yes you have to fax or email (I was able to email my packet in but could not have any one file over 5mb, so had to split files and send in a few). There is a different authorization/release I even had to get by sellers to sign (HUD), the old one wouldn't work.
They will require this phrase to be in your listing contract, "seller may cancel this agreement prior to the ending date of the listing period without advance notice to the broker, and without payment of a commission or any other considerations, if the property is conveyed to the mortgage insurer or the mortgage holder." I just drafted an addendum to the listing contract since it had obviously been executed months before I was aware this phrasing needed to be in there and both myself and the seller signed.
Your seller will have to sign a couple more forms HUD requires, but there is good news for them. HUD is paying my sellers $1,000.00 to complete the short sale.
It took me about 3 weeks to get through the first phase of negotiation with my new HUD level 1 negotiator, 1.5 weeks to get assigned to my second level negotiator and about 2 weeks to get approval from the 2nd level negotiator. -
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Note to Sherry. FHA has it's own short sale program as suggested by Tiffany. Don't blame BOA. You should be workking on the short sale with HUD. Their program is actually very good. The problem you might run into is when the lender isn't familar with the program. But once you are passed that...
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BB the way NO FHA or VA BofA sales can be completed in Equator. When I got kicked out of equator, they didn't explain to me why. The negotiator just sent me an email that said this short sale is rejected because it was opened in error. What in the heck is that supposed to mean? Emailed her several times, called several times, left several messages on Equator. She never explained further. I had to call the BofA 866 number and someone explained it to me there and got me started and moved over to the HUD short sale department. Things went quickly after that.
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Thanks for all the help. Yes, I am the listing agent. Originally, the seller told me that it was a Fannie Mae loan, although now I'm starting to question that. On one of the mortgage statements it say's "Loan Type: 30 yr Conv Rural Econ w/PMI."
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Is this outside your metro area? This sounds like a rural development loan. And that would be a goverment loan.
Joe Barnwell said:Thanks for all the help. Yes, I am the listing agent. Originally, the seller told me that it was a Fannie Mae loan, although now I'm starting to question that. On one of the mortgage statements it say's "Loan Type: 30 yr Conv Rural Econ w/PMI." -
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Yes, we are in an area that is 100% eligible for RD loans. I'm assuming in that case it does not get processed like a HUD loan? thanks
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