Need advice on BofA Process
I've been reading quite a bit about the short sale process on this site and have a question about my case.
Long story short - I am the buyer on a short sale and we have the BofA approval letter. I'm not sure how to tell if it's also been approved by the investors? I actually signed all my escrow papers this past Tuesday and saw the letter. It looks just like the example posted on this forum, so it has the sale price, agent commission, incentive for the seller, and the net amount BofA needs to make from this transaction. Does this mean it has been approved by the investor also?
We submitted our final HUD on Tuesday 7/30, the same day I signed my escrow papers and wired the down payment. I was told by the listing agent that BofA has 72 hours to provide us the final approval. On Friday, 8/3, BofA said that they just realized there was a second mortgage on the property?!?! We knew this all along but I guess the first approval did not consider this. The lienholder on the second mortgage is Bank of America NA.
On Friday, the listing agent told us that the 2nd only wants $3K. The net proceeds of the transaction currently is $9K over what BAC needs, so we are ok there.
Today my agent informs me that we need to go through the entire BAC approval process again because of this second mortgage. Has this happened to anyone before? How long did it take? The listing agent says he's in contact with all the right people and he thought he could get the approval today. That seems optimistic and of course he was not able to do this today.
What other options are there? I offered to pay $3K for the 2nd so that we do not have to go through the whole approval process of BAC. I've read that BPOs expire, etc. If the first approval took close to 45 days, I can't spare that much time. Help!
Replies to This Discussion
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Permalink Reply by Pattilynn Guilford on
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Why didn't the agent get both mortgage statements when taking the listing?
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Permalink Reply by Wendy Rulnick on
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Y C - That is highly surprising that Bank of America did not know they had the second lien. Normally, they would pay $3000 (more or less) from the senior investor proceeds to pay the second. Now they have to get approval from the senior to decrease its net, as well as conform to the junior investor's short sale requirements. It could happen quickly, given the circumstances, or not. I don't think it would take weeks, but a lot of it depends on who the investors are (type of loan, etc).
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Permalink Reply by Y C on
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Yeah it be beyond me how BofA missed this the first time! The second is a HELOC that the seller had used $26K of. Even with the $3K payout, we are above the proceeds required by the first mortgage. I'm hoping that helps!
Is this something I can try to escalate along with the escalation tool email? As the buyer, how much can I really do? I don't think the listing agent has been as diligent as me in doing the research ;-)
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btw: does it help at all that this is both Bank of America? The listing agent seems to think so, but I figured the two branches of the business operate independently so it doesn't really make a difference.
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Y C - It should definitely help and speed things up that both liens are with BOFA! From what you said, the listing agent is on top of it. As for not knowing there was a second lien (by the listing agent), that is unfortunate. There are ways to check for that early in the listing period (asking the seller - believe it or not, they sometimes "forget", and most importantly, ordering a title search.)
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That's the interesting part. From Day 1, the listing agent has said it's good that we are only dealing with one bank. The title search that was part of escrow said there were two mortgages. Which is just baffling that the approval letter came back with only one lien holder. I didn't see the full approval letter until I got my escrow papers and I'm surprised no one else saw it.
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Hi Y C - Sometimes HELOCs want more than the "standard" amount. I bet BOFA is scrambling to make this right. You really cannot do anything. The only people who can speak with BOFA are those authorized by the seller on his account.
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Ah yes, I tried the twitter route already and they said they were not authorized to speak to me. Would it help at all to email escalation and tell them to make sure this is case is getting attention? Or is that something that from the buyers side wouldn't help at all?
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The SS banks don't always pull title from the get go that is why its imperative that an agent ask the homeowner for all mortgage statements. If the listing agent had both, he/she should have put both on all the docs that were uploaded and should have communicated with the bank via email about the second lien and ask how the bank wants it processed.
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