Advanced Question - What is the difference between the Investor and the Trustee on the note?

I am working on a NIGHTMARE short sale with........

Can anyone guess?


I was told the Investor on the note is Bank of NY.
Contacted them directly, and, they said they are the "Trustee" on the loan and that B of A has final and sole decision making power?

Huh, anyone know the difference or can better explain what the "Trustee's" role is on the loan or short sale?

I have calls in to the 3 persons I know at Bank of NY, BUT being a little "anxious" would like to know as soon as possible what the "Trustee" does?

If anyone has an answer to this while I wait to hear back, I would sure love to hear.


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Comment by Kevin - Greenville, SC on August 22, 2012 at 6:43pm

Great work as always Ben!

Comment by Ben Benita on June 21, 2012 at 10:23am

winner winner winner - Jim nails it. 

Bank of New York is  the "Trustee" (or entity in charge of decision making) for a private investment trust that holds this note.

Bank of America is the "servicer" for the Trust


Although lower level persons at Bank of NY CLAIM they do not make the decisions, fact is, they DO have authority to make exceptions....which is EXACTLY how I got $9600 in condo fees APPROVED on a $115,000 condo in Virginia.


The kicker - my negotiator at B of A said, and I quote:

"Ben, we do NOT pay delinquent condo fees in VIrginia, it is one of our guidleines, no excpetions"


Uh, really, apparently HE DIDN"T REALIZE WHO HE WAS UP AGAINST!!!!

Winner in the end -

Seller - No foreclosure and no condo association chasing her

Agents - They get PAID where they otherwise would have not!!!!


All good....WHOSE NEXT!!!!


Keep fighitn short sales, let me help!!!


Comment by Jim Schneider on June 13, 2012 at 7:53am

Ben, I'm almost sure this is a mortgage backed security trust. Thus Bank of NY plays the role of investor for the trust, except it's still not their money, so they still don't care. These deals can be a rudderless ship, and in my experience the trustee doesn't get involved no matter how bad the servicer screws up.

Comment by Jeff Payne on June 12, 2012 at 12:34pm

I get scared when Ben asks for advice :)  The master looking for help!!!  I wonder if this just means that BofA has delegated authority to make the decisions for Bank of New York.  Just about ALL of my REO with BOFA actually say Bank of New York is the owner, yet BOFA is who hires me to sell them and BOFA signs all of the paperwork


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