Replies to This Discussion

Permalink Reply by Ben Racela on October 25, 2011 at 6:42am

Is this a HAFA short sale? Please provide a little more detail.

Permalink Reply by Andrew Arild on October 25, 2011 at 6:49am

Vicki - can you provide some additional detail including what state the sale is in? Is it HAFA or not and do you know who the investor is?

Permalink Reply by Vickie Hunt on October 25, 2011 at 7:23am

No this is not HAFA.  Conventional Loan. True Hardship-Lost of Job-Depleted Savings. Is considered second home even though reason they have two is because home they were selling buyers walked day of closing 2006.  Have made payments for 5 years. Had nightmare renters.  Home we are talking about is in GA

 

Permalink Reply by Wendy Smith on October 25, 2011 at 8:01am

Does the deed in lieu waive deficiency?

Permalink Reply by joe beauchamp on October 25, 2011 at 8:35am

BOA does this a lot - if you believe them, it is out of incompetence.  They will not process a DIL at the same time they process a SS - In theory.  BOA sends all kinds of deals to the seller.  If the seller responds to any of them, it often kills the short sale.  These are from different departments which claim to have no knowledge of the short sale - oh, until that approval is just about to come to you, then they just seem to find that somehow the seller has "slipped through" their rigorous watchguard and has both a DIL and SS going on.  Then they make the seller choose one.  In my last case, the seller was being harassed by the HOA atty and BOA had no interest in a DIL for 3 yrs - that is prior to having a buyer and approval on its way.  The DIL dept said (not in writing) that they would pay the HOA but if she did the SS, well, she'd have to start the DIL over if the SS fell through.  Which do you think she did?  The DIL - zap the investor, agents, buyer and her own credit to not chance BOA ignoring her plea for a DIL for another 3 yrs..

BOA is paid to manage these files.  A DIL means that they averted a short sale and get to move the file to their REO dept to be paid to manage it there.  Funny how their mistakes work out for BOA.

If your investor is FNMA, the CEO is on youtube 7/1/2011 stating they will not go after debt in any successful short sale.  Your seller wouldn't have to worry about that.

The DIL is almost the equivalent of a foreclosure - you simply saved the bank some money.  The short sale is definitely better for the seller's credit - and, I'm guessing, better for the investor (and agents) - just not BOA.

However, you are using some different terms. Closing dept? How did you get from an approval to a DIL?  Is your seller in some special BOA program?  I assumed this was a regular short sale and at the same time, BOA sent papers to the seller for a DIL so BOA started that, too.

At this stage, I'd suggest either use twitter to bofa_help or call the office of the president.  Likely, you will get "seller can't be in both and must choose."  And the seller will be convinced that it is better to be done with this bank and lose a leg rather than struggle on and try to do better for everyone with the short sale.  (I have to assume a lot - like you are facing what I have faced with BOA - you've left out a lot of important detail - but you don't have time to play around so I'm giving you my best guess.)

I suspect that BOA grinds up deals like this often so is ready for your call.  Good Luck!