Replies to This Discussion

Permalink Reply by Bob Wienk on September 18, 2010 at 3:24pm

I think you are mixing up the parties to the transaction. In your case, BofA was probably the servicer, not the investor. The investor takes the loss, but BofA gets paid to service the loan, and the longer they can drag it out, the more they get paid. Once they settle the short sale, they have cut off their income stream.

Permalink Reply by Karyl Moore on September 18, 2010 at 3:26pm

That is what I meant but I guess it wasn't clear. thanks, tho!

Permalink Reply by Wendy Smith on September 19, 2010 at 6:28am

That's absolutely correct Bob - hence, the end to the mystery of why short sales take so long.


Bob Wienk said:

I think you are mixing up the parties to the transaction. In your case, BofA was probably the servicer, not the investor. The investor takes the loss, but BofA gets paid to service the loan, and the longer they can drag it out, the more they get paid. Once they settle the short sale, they have cut off their income stream.

Permalink Reply by joe beauchamp on September 21, 2010 at 3:21am

BofA is at the bottom of the heap for longest times for short sales and least amount of payback to the investor according to the article that I read (no surprise to me). They do get penalized - eventually - by the investor, but it takes a lot to wake up fannie mae, the biggie, when their people don't care - taxpayer money, explicitly exempted on the president's "gonna fix gov't finances". One person here told me that they are helpful to her. I have never seen that - always the jerk who wants to get back to his donut. I cannot forget the guy who told me it was the lending bank's money (well, true, in paperwork - sort of). You don't think it mattered when I said that he was the INVESTOR, do you? Nah, he has a newspaper to read during the rest of his 3 hr day with 400 days vacation/yr, super retirement, excellent health care and the only responsibility he has is to make a couple of calls and get them off of his phone.

I see 3 things here with BofA: 1) incompetence - a lot of it in the workforce; 2) micro management and thinking - my bonus, my 100 files to get through regardless of how and 3) like most people, a real disconnect for anything that takes more than 15 minutes from NOW. Yep, FMA will hit them - eventually - and they will be sooooo surprised that the investor took away X number of accounts to give to OCWEN or someone because of the overall numbers - that nobody is managing on a daily level, hence, BofA doesn't see or hear or care about any such thing like oversight. (I use the denial letters as clear proof of nobody to answer to. I can dispute many of them in 30 seconds just using the equator log of activities - wouldn't they BOTHER to make the denial credible if ANYONE were actually watching over BofA's actions?).

You might have dodged a bullet - FMA and freddie are cracking down on sheriff sale postponements. I lost a great deal for everyone (except BofA) that way. Throw in just the last 2 months of wasted time by BofA and it would have been done. Result? FMA got rid of the seller alright, and with 25 more days could have had it sold at $204K. Instead, it went back to BofA REO (oh, lookie here, BofA said FMA wouldn't let it go through after it sat for 1 1/2 yrs and who gets it right back? Hmmm.). Ah, yes. REO? On market at $234K, 2 wks later, $199K - let's see what the next month brings, perhaps a potential buyer? Maybe something ACTUALLY dictated by the market? $180K? I wish I had the time to watch all these swell decisions by BofA to go to sheriff sale...

That could have been you, so, congrats! You didn't get hit by the BofA backroom roulette wheel (about 10 double 0's on it) or the "it is the investor insisting on the sheriff sale" line. And, you didn't retire or die of old age! Nice accomplishment. Your buyer's great grandchildren are probably enjoying the place right now! ;-)

Permalink Reply by Karyl Moore on September 21, 2010 at 4:58am

Thanks, Joe. Actually, I did have two deals on Equator thrown out recently without extending the sale date and I was wondering why because B of A has almost always given time to close when there's a valid offer on the table. Yes, they were both FNMA. I didn't realize FNMA and Freddie Mac were cracking down - thanks for telling me. Have you heard about the proposed bill to shorten short sale responses to 45 days? I'll try and attach the info. I'm sure the banks will find loopholes but maybe it will help a little.