Comment

Comment by Michael Schneider on April 19, 2011 at 7:35am

Here is the passage from ML 08-43, btw

At the time the PFS closes, the loan must be in default (i.e., delinquent more than 30 days). Mortgagees may exercise their discretion to accept applications from mortgagors who are current but facing imminent default.  However, by the date the PFS settlement occurs, the loan must be in default.

Comment by Michael Schneider on April 19, 2011 at 7:29am

Valerie,

Yeah, I think this is pretty much the case.  Some servicers interpret ML 08-43 to require that the sellers must be at least 30+ DPD at time of sale. (Which means missed two payments,btw.)

Whether or not ML 08-43 really states this is, I think, subject to interpretation, but if my Servicer think it does, then on that deal, it does.

The fact that this may not be quite aligned with FHA origination policies is a different matter, I think.

Comment by Valerie Pressley on April 19, 2011 at 6:42am

I'm doing an FHA short sale with Citimortgage and the negotiator said that she would approve the short sale once the seller was 30 days behind.  She said that this is FHA policy that the seller has to be in default in order for them to do a short sale.  Is this in fact true?  I have an FHA mortgagee letter that states that a homeowner who does a short sale and is not behind can immediately purchase another home.  The two seem to be at odds.

Comment by Jim Stewart on April 19, 2011 at 5:22am

I'm submitting a Freddie Mac HAFA request to BAC today. Problem is I already have an offer coming on the home.  My understanding is that Freddie won't do a HAFA short sale if there is already an offer on the home prior to submission so I'm sending all of the documentation in for the HAFA request now, before I receive the offer and thinking about holding the offer for a couple of days while it gets set up in BAC's HAFA system.  Does anybody have any advice as to whether this is a good idea? I called AMS who handles BAC's pre-offer HAFA short sales and they told me that even if I get an offer quickly that it won't affect the HAFA request.  I had a similar situation with Wells Fargo though and the offer blew the HAFA request up since it was received before they had "completed their review".  Any thoughts/advice??

Comment by Wendy Smith on April 19, 2011 at 1:07am

Wow!  Released the borrower of debt?  A full release?  BoA? I'm stunned. 

Comment by Terry Parrish on April 18, 2011 at 2:51pm

I want to post another positive experience with BofA - contract acceptance Feb 1, 2011, SS agreement letter, March 14th, COE, April 18th.  They were very responsive, and fair in all the negotiations.  Released the Borrower of debt and lien, no cash or promissory note. 

Out of all the Lenders I work with, they have been one of the most pro-active in foreclosure avoidance.

Comment by Julia Huntsman, 562-896-2609 on April 18, 2011 at 4:39am

If commission is not covered as a cost to be paid by the bank (yes, we know what the California listing agreement terms are), then how, in reality, does Bank of America, or any bank, not expect to be taking back these properties in foreclosure? What's the percentage of buyers who are willing to pay the seller's commission cost, if they could, and what's the percentage of sellers who actually have the funds to do that? Right now, my short sale sellers certainly do not have that ability. FNMA has indicated at meetings I've been to that they want to know about issues connected to the closing of their loans, and so has Kimberly Dawson, VP of Short Sales at Bank of America (the last I heard), assuming the agent has first pursued avenues to resolve the issues.

Comment by Patty Da Silva on April 18, 2011 at 3:37am

I am full agreement with Katherine. Lender is NOT  part of the contract.

Comment by Thom Colby CA Brkr 888-391-5245 on April 18, 2011 at 3:36am

Katerina,  As a Broker/Owner, I've been doing this a long time, handled more than 100 short sale transactions with BofA and I certainly know how transactions work.  I may have "fallen off a turnip truck" - but it wasn't yesterday.  I certainly understand who is responsible for what.

 

As for your statements: " The bank is not a party to the contract. I do agree that they do interfere with contractual bi lateral agreements all the time. But as far as commissions go, the bank is NOT paying those. The seller technically is. Your listing agreement is with the seller not the bank." 

 

How would any Broker not know what you just said?  You are exactly right. The listing Agreement is with the Seller - not the bank - but if the bank / lender says they will not pay the commission or allow it to be paid from the proceeds, then we have all done our work for "free".  We cannot take that chance and need to protect ourselves.

 

BofA has come back within the last 5 minutes and requested that I highlight their spelling errors so they can forward to legal and "try" to get it corrected !

 

I've had great luck with BofA and I enjoy working with them.

 

Comment by Katerina Gasset on April 18, 2011 at 3:16am

Thom- This is our take on this and that of our attorney. The lender is not a party to the contract and therefore is not liable for commissions. It is really the seller who is paying the commissions. The seller gets the money from the buyer, pays the closing costs and realtor fees and then asks his bank if they will please take what is left as payment for his underwater mortgage. The bank is not a party to the contract. I do agree that they do interfere with contractual bi lateral agreements all the time. But as far as commissions go, the bank is NOT paying those. The seller technically is. Your listing agreement is with the seller not the bank.

• ‹ Previous
• 1
• …
• 164
• 165
• 166
• 167
• 168
• …
• 353
• Next ›
• Page