Replies to This Discussion

Permalink Reply by Sameer Punjani on August 8, 2011 at 10:10am

Any deal that doesnt go my way, im gonna bring up the loss share agreement they have with the fdic. This was exposed and search for it on this site. You will need to write to your state senators and ceo of the bank.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on August 8, 2011 at 10:14am

SB 458 says "No deficiency shall be owed or collected.........."

 

See SB458 attached.

 

I expect that if BofA collects the funds the seller is offering voluntarily, they will have broken the law in violation of SB458.  I am not an attorney and this should not be perceived as legal advice - it is merely my opinion of reading SB458.

 

Also, if the seller has $25,000 cash to contribute - I expect they may not actually have a "hardship" !

 

Best of luck !

 

Thom Colby

Broker

Newport Beach CA

Attachments:

• sb_458_bill_20110701_enrolled.pdf, 79 KB

Permalink Reply by Jeff Payne on August 8, 2011 at 10:14am

sameer, that loss share agreement has turned into a bit of an urban legend.

Permalink Reply by Erinn Frisbie on August 8, 2011 at 10:21am

I see what you mean and that was my first thought.... however SB458 applies to second lien holders and contribution can not be made if there is a second. At least that was my interpretation. Maybe I am wrong.

 

The fact that B of A put the offer through as a HAFA with UTLS (which was declined as I knew it would be) then they transferred it to AMS... again as a HAFA, after I told them that the seller did NOT live in the house, they finally gave it to the right department, etc etc etc only to say "no sorry this is what we want for the house, we don't care what the comps say and no the seller can not give is any money" I am shocked!

Thom Colby Newport Beach CA said:

SB 458 says "No deficiency shall be owed or collected.........."

 

See SB458 attached.

 

I expect that if BofA collects the funds the seller is offering voluntarily, they will have broken the law in violation of SB458.  I am not an attorney and this should not be perceived as legal advice - it is merely my opinion of reading SB458.

 

Also, if the seller has $25,000 cash to contribute - I expect they may not actually have a "hardship" !

 

Best of luck !

 

Thom Colby

Broker

Newport Beach CA

 

Permalink Reply by Erinn Frisbie on August 8, 2011 at 10:21am

Jeff,

I thought the same

Jeff Payne said:

sameer, that loss share agreement has turned into a bit of an urban legend.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on August 8, 2011 at 10:24am

What is there to "expose" on the Loss Share Agreements ?  They are legal agreements (assuming it exists with the holder of the mortgage) between the USA and the bank.  The most famous LSA is the one with One West Bank from tha failure of IndyMac.

 

Did I miss something in the discussion ?

 

Thom

 

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on August 8, 2011 at 10:34am

Erinn, read SB458 again, it applies to ALL Deeds of Trust on a property.  SB458 is an expansion of then current law.

 

Thom

Erinn Frisbie said:

I see what you mean and that was my first thought.... however SB458 applies to second lien holders and contribution can not be made if there is a second. At least that was my interpretation. Maybe I am wrong.

 

The fact that B of A put the offer through as a HAFA with UTLS (which was declined as I knew it would be) then they transferred it to AMS... again as a HAFA, after I told them that the seller did NOT live in the house, they finally gave it to the right department, etc etc etc only to say "no sorry this is what we want for the house, we don't care what the comps say and no the seller can not give is any money" I am shocked!

Thom Colby Newport Beach CA said:

SB 458 says "No deficiency shall be owed or collected.........."

 

See SB458 attached.

 

I expect that if BofA collects the funds the seller is offering voluntarily, they will have broken the law in violation of SB458.  I am not an attorney and this should not be perceived as legal advice - it is merely my opinion of reading SB458.

 

Also, if the seller has $25,000 cash to contribute - I expect they may not actually have a "hardship" !

 

Best of luck !

 

Thom Colby

Broker

Newport Beach CA

 

Permalink Reply by Erinn Frisbie on August 8, 2011 at 11:04am

I see your point and will be re-reading. However back in December it was ok under 931 as I had one with B of A fall apart because they were asking for a contribution... now they will not take one that is being voluntarily given - with no junior lien holder? Doesn't make sense.  

Thom Colby Newport Beach CA said:

Erinn, read SB458 again, it applies to ALL Deeds of Trust on a property.  SB458 is an expansion of then current law.

 

Thom

Erinn Frisbie said:

I see what you mean and that was my first thought.... however SB458 applies to second lien holders and contribution can not be made if there is a second. At least that was my interpretation. Maybe I am wrong.

 

The fact that B of A put the offer through as a HAFA with UTLS (which was declined as I knew it would be) then they transferred it to AMS... again as a HAFA, after I told them that the seller did NOT live in the house, they finally gave it to the right department, etc etc etc only to say "no sorry this is what we want for the house, we don't care what the comps say and no the seller can not give is any money" I am shocked!

Thom Colby Newport Beach CA said:

SB 458 says "No deficiency shall be owed or collected.........."

 

See SB458 attached.

 

I expect that if BofA collects the funds the seller is offering voluntarily, they will have broken the law in violation of SB458.  I am not an attorney and this should not be perceived as legal advice - it is merely my opinion of reading SB458.

 

Also, if the seller has $25,000 cash to contribute - I expect they may not actually have a "hardship" !

 

Best of luck !

 

Thom Colby

Broker

Newport Beach CA

 

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on August 8, 2011 at 11:09am

I've had the same issues in the past - but that was prior to SB458 - which says clearly; "No deficiency shall be owed or collected.........." so the bank cannot collect anything from the seller - period.  This actually changes the game, if they cannot collect, then maybe they will be declining more short sales in CA - who knows !  Scary, huh ?

Thom

 

Erinn Frisbie said:

I see your point and will be re-reading. However back in December it was ok under 931 as I had one with B of A fall apart because they were asking for a contribution... now they will not take one that is being voluntarily given - with no junior lien holder? Doesn't make sense.  

Thom Colby Newport Beach CA said:

Erinn, read SB458 again, it applies to ALL Deeds of Trust on a property.  SB458 is an expansion of then current law.

 

Thom

Erinn Frisbie said:

I see what you mean and that was my first thought.... however SB458 applies to second lien holders and contribution can not be made if there is a second. At least that was my interpretation. Maybe I am wrong.

 

The fact that B of A put the offer through as a HAFA with UTLS (which was declined as I knew it would be) then they transferred it to AMS... again as a HAFA, after I told them that the seller did NOT live in the house, they finally gave it to the right department, etc etc etc only to say "no sorry this is what we want for the house, we don't care what the comps say and no the seller can not give is any money" I am shocked!

Thom Colby Newport Beach CA said:

SB 458 says "No deficiency shall be owed or collected.........."

 

See SB458 attached.

 

I expect that if BofA collects the funds the seller is offering voluntarily, they will have broken the law in violation of SB458.  I am not an attorney and this should not be perceived as legal advice - it is merely my opinion of reading SB458.

 

Also, if the seller has $25,000 cash to contribute - I expect they may not actually have a "hardship" !

 

Best of luck !

 

Thom Colby

Broker

Newport Beach CA

 

Permalink Reply by Erinn Frisbie on August 8, 2011 at 11:23am

Considering this is the FIRST file I have EVER had declined... yes it is very scary!!

Permalink Reply by ElizabethWeintraub00697006LyonRE on August 9, 2011 at 4:46am

SB 458 says the seller cannot be required to make a contribution as a condition of short sale approval. An argument could be made that the bank is not requiring nor requesting this contribution. That's probably what a lawyer would say. I've heard arguments on both sides of the fence, and this is not black and white, it's not cut and dry.

 

In your case, it might have more to do with Fannie Mae than with Bank of America. I have asked the VP of short sales at Bank of America for an opinion or a statement regarding SB 458, but he has not responded

 

Elizabeth Weintraub

Broker-Associate #00697006

Lyon Real Estate

Sacramento Short Sale Agent

Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Permalink Reply by Erinn Frisbie on August 9, 2011 at 4:49am

Thank you Elizabeth. I have tried to get some answer but I have not heard back from anyone. It just seemed strange to me because the negotiator didn't come right out and tell me that it was because of SB 458... she made me guess. Just didn't sit well with me.

ElizabethWeintraub00697006LyonRE said:

SB 458 says the seller cannot be required to make a contribution as a condition of short sale approval. An argument could be made that the bank is not requiring nor requesting this contribution. That's probably what a lawyer would say. I've heard arguments on both sides of the fence, and this is not black and white, it's not cut and dry.

 

In your case, it might have more to do with Fannie Mae than with Bank of America. I have asked the VP of short sales at Bank of America for an opinion or a statement regarding SB 458, but he has not responded

 

Elizabeth Weintraub

Broker-Associate #00697006

Lyon Real Estate

Sacramento Short Sale Agent

Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.

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