Replies to This Discussion

Permalink Reply by Christy Brock on December 28, 2011 at 12:17pm

I am sure others will chime in but since there is no deficiency for BofA, you don't qualify for a HAFA short sale.  Also, you will not submit a short sale package to the 1st at all since it is not a short sale payoff to the 1st.  You should order a payoff demand for the 1st to be certain of your costs.  You only need to negotiate with the 2nd.  The negotiation should be easy since they will get over 40% payoff.

Permalink Reply by Kevin - Greenville, SC on December 28, 2011 at 12:18pm

agreed.

Permalink Reply by Chris McGee on December 28, 2011 at 12:21pm

After expenses the 2nd is getting ~ 27%.

 

B of A originally declined the HAFA SS because the house is not occupied but they are sending it forward again for underwriting approval because they didn't realize the house was only vacated a month ago and only because the homeowner took a job in another state.  So it is not an automatic decline on the HAFA SS. 

 

Permalink Reply by Christy Brock on December 28, 2011 at 12:29pm

Sorry Chris.  I calculated my expenses differently.  Here is the math I used:

$195,000   sale price

- $13,650   7% expenses (6% commission and 1% other transaction costs for seller)

-----------

181,350

-145,000  payoff to BofA

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36,350  left for payoff to USAA which is 42% of $86,000

Apparently you have an additional $13k in expenses. 

Either way...not a short sale for the 1st lien and HAFA doesn't apply.  BofA will not look at this at all but it will take them months to figure that out.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on December 28, 2011 at 1:26pm

Christy is absolutely correct - At some point BofA is going to realize they don't need to spend any time on your transaction - they get paid in full no matter what. 

 

Is the borrower current or are they in arrears and accumulating penalties, etc. If in arrears, better get on the ball with the 2nd or their money will dwindle by the penalties for BofA.  IMHO, you are wasting your time talking to BofA - you need to talk to USAA fast !

Permalink Reply by Chris McGee on December 30, 2011 at 8:40am

OK, I received a phone call from a B of A Social Media rep who monitors these sites regularly and saw my post ... thank goodness!  As my gut instincts told me and as you all say it is true that once B of A figures out our sales price is more than their payoff the short sale will be declined.  Although I've told them this over and over they are task driven and not realizing this as they still have us in the system as "HAFA without an offer".  I have been working with the 2nd all along and we are close to agreement so we should be good to go now. 

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on December 30, 2011 at 8:47am

If it will be a full payoff to BofA - they need to get this file out of their system so you can close once you get to an agreement with the 2nd.  BofA really has nothing to do with it.  As long as your settlement service has a Payoff demand from BofA and there's enough money to fulfill it, your done and unfortunately it was a waste of time.

 

I continue to be interested in how this plays out -

 

All the best !

 

Thom Colby

Permalink Reply by Chris McGee on February 13, 2012 at 8:41am

DOES ANYONE KNOW HOW TO GET A PAYOFF STATEMENT FROM B OF A, EVEN IF VERBALLY AT THIS POINT? 

I finally received the approval letter last week from USAA.  Before proceeding, we need to know the payoff balance (precisely) for BofA to be sure we can meet the net to USAA that they approved.  We (me, escrow, homeowner) have been trying to get a payoff statement for over a week now. 

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on February 13, 2012 at 8:43am

Chris -   Tweet @BofA_Help they will get it done !

Permalink Reply by Chris McGee on February 13, 2012 at 8:55am

Thanks Thom.  I did Tweet last Friday and they said they will have to refer to the line of business as they do not have access to payoff statements.