Time line before short sale client can purchase again.

I took a foreclosure/short sale class yesterday and there was a local B of A lender there. He was a Country Wide lender until B of A took over. He said that the timeline before a short sale seller can purchase another home has increased from 2 years to 3 to 5 years.  After the presentation I went and asked him why B of A was not following the Fannie Mae guidelines. He said the guidelines had changed. I told him that I am constantly online checking for changes in the short sale process and I have not seen that change. He then told me that Fannie was a disaster and B of A is now considered the bank who sets the standards as far as guidelines go. He said that what ever they do Chase and Wells Fargo will follow suit. At that point I really felt like the room was starting to smell.  I asked him to email me a copy of the new guidelines so I could share them with my clients. He then went into this  "song and dance" about loan mods. and how they benefit the borrower. I listened, but in my my head I was thinking that when a borrower owes more than twice the value of their home, the only one who will benefit from their loan modification is the lender, unless said lender is willing to significantly reduce the principal. Anyway, when I got home I searched the web to see if I could find any changes in short sale re-purchase guidelines and I found none.  Has anyone heard of changes or was this guy just continuing the Country Wide tradition of deception and lies.      

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Replies to This Discussion

Permalink Reply by Kent Dills on February 5, 2010 at 6:11am
Tracey, have NOT heard of this 3-5 year guideline and I shiver at the thought of B of A/Countrywide setting standards in any industry.
Permalink Reply by Katerina Gasset on February 5, 2010 at 7:04am
This is not true as far as we have been able to find out from executives at BofA. On NAR website- there is also an interview with BofA executive- who says that the time frame is 1 to 2 yrs.
Not only that, who of us here that work in short sales would EVER refer any of our clients to get a loan from BofA in the first place. Why would any agent work with a bank that obviously does not even know how to do a short sale or respect the work of a Realtor®?
In fact, FHA came out with a new guideline that depending on the circumstances you may be able to get an FHA loan right after a short sale. So go FHA with a mortgage broker who knows the ins and outs of FHA loans for your buyers.
Permalink Reply by Tracey Martin on February 5, 2010 at 7:44am
That's what I thought. Thank you so much for the feed back.

Katerina Gasset said:
This is not true as far as we have been able to find out from executives at BofA. On NAR website- there is also an interview with BofA executive- who says that the time frame is 1 to 2 yrs.
Not only that, who of us here that work in short sales would EVER refer any of our clients to get a loan from BofA in the first place. Why would any agent work with a bank that obviously does not even know how to do a short sale or respect the work of a Realtor®?
In fact, FHA came out with a new guideline that depending on the circumstances you may be able to get an FHA loan right after a short sale. So go FHA with a mortgage broker who knows the ins and outs of FHA loans for your buyers.
Permalink Reply by Tracey Martin on February 5, 2010 at 7:45am
Terrifying isn't it.

Kent Dills said:
Tracey, have NOT heard of this 3-5 year guideline and I shiver at the thought of B of A/Countrywide setting standards in any industry.
Permalink Reply by Dominique Van Ryckeghem on February 5, 2010 at 7:55am
I suggest some thinking outside the box here:
Since there are so many inaccuracies in reporting to credit of short sales and foreclosure, you can use the FCRA (Fair Credit Reporting Act) to have the accounts removed from credit. It's a specific set of steps - which I can't go into detail on - but it works.
Once the accounts are gone, then qualifying for another loan becomes a non-issue.

I can't shake the impression that the big banks like kicking our clients while they're down and take pleasure in it.
Permalink Reply by Elizabeth Monje on February 7, 2010 at 5:06pm
Hey Dominique, how can one use the FCRA to remove a negative remark on short sale? would share that with ME? US? Thank you
Permalink Reply by Dominique Van Ryckeghem on February 7, 2010 at 7:20pm
Elizabeth,

I charge for this service so I won't be going into any detail about how I remove a foreclosure or short sale from credit.
Sorry.

Dominique

Elizabeth Monje said:
Hey Dominique, how can one use the FCRA to remove a negative remark on short sale? would share that with ME? US? Thank you
Permalink Reply by Thomas McCombs on February 8, 2010 at 2:38am
I keep hearing about those who say that they can take advantage of the "100's" of the provisions in the law about the need for credit reporters to provide data accurately and in compliance with these provisions. And the claim is that most of the time the requirements are not being met properly, so the credit dings must be removed.
I have never seen anyone document any of this. As far as I can see, there is nothing that anyone can do that can not be done easily by the individual him/herself.
As a matter of fact anyone utilising one of these services would, IMHO, be raising a red flag to a potential creditor.
I would like to read about even 15 of these "100's" of provisions. I don't think they are out there, and I have read and studied the laws.
Pls, show me where I have gone wrong here. Pls reply on this forum as I am not the only one interested in this.
Permalink Reply by Karen Hurst on February 9, 2010 at 9:43am
Ummm...I just had this question regarding the "time" after the short sale and not many knew the answer. However, the guidelines "did" change. If I can figure out how to upload them I will. They are dated 12/09 and are from HUD, who I choose to believe is still calling the shots.
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Permalink Reply by Tracey Martin on February 9, 2010 at 10:38am
Thanks for the info. It looks like this applies to FHA loans, correct?

Karen Hurst said:
Ummm...I just had this question regarding the "time" after the short sale and not many knew the answer. However, the guidelines "did" change. If I can figure out how to upload them I will. They are dated 12/09 and are from HUD, who I choose to believe is still calling the shots.
Permalink Reply by Karen Hurst on February 10, 2010 at 4:21am
Yes, I believe that is correct. It's so hard getting information on anything these days. Anything we "knew" is not relevant anymore.
Permalink Reply by Tracey Martin on February 10, 2010 at 2:42pm
That is so true!!!!

Karen Hurst said:
Yes, I believe that is correct. It's so hard getting information on anything these days. Anything we "knew" is not relevant anymore.

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