Replies to This Discussion

Permalink Reply by joe beauchamp on September 11, 2012 at 2:39am

Whoever is on the mortgage or note is expected to be involved in the short sale. Others will be involved if they are on the deed - to the extent that the bank cannot "sell" something it doesn't "own". You will get different rules based upon who the investor is - the bank follows the investor's guidelines. FHA can be different from FNMA, from FHLMC from WF, from BoNY, etc. I don't think I've ever had one at BofA where both were not required to submit paperwork if both were on the mortgage.

Negotiators at BofA seem to have been mostly replaced by people with very limited control and capability. More often than in the past, this means that they missed some investor guideline (admittedly changing frequently and complex) and you get the "do it this way" followed by "no, do it that way".

The "do it in 2 days" is a new thing with BofA since about June. FNMA and FHLMC came down on banks to do short sales faster. BofA responded by demanding things unreasonably in unnecessary short time periods. Typical political games by Fed bailouts and banks. BofA has not sped up anything, from what I see, except how long you have to respond to them. I've had them demand papers in less than 24 hours and 4 weeks later, nothing had been done with them. So, if it took another day to get the papers, is that really where the short sale is taking so long? Are buyers and sellers complaining that they are taking too long themselves to respond to the bank and that is why short sales take forever? I don't think so, yet investors look the other way when the banks create these overbearing, unnecessary demands. It is not just you...

Permalink Reply by Jimmy Williams on September 11, 2012 at 2:39am

Neil,
My last BofA short sale involving a divorce only the party that was awarded the house had to sign the sales agreement. BofA did not require the ex-husbands signature or his financials, because it clearly stated that the wife was awarded the house in the divorce decree. However when the divorce was completed the attorney's failed to quit claim the ex-husbands interest in the house to his ex-wife. In order to have clear title the ex-husband had to sign the deed transfer agreement for the title company at closing.

Permalink Reply by Neil L. on September 11, 2012 at 5:41am

Thank you both.  Again, inconsistent info which is what I was seeing too.

I sent them an email asking for more than 2 days while I work on it.  I sure hope I can do it in time.  Thanks.

Permalink Reply by TOP END Properties on September 11, 2012 at 5:35pm

There are two parts to this:  The Title and the Mortgage.  If they are both on title, they should both sign the listing agreement and contracts .. however if only one is on the mortgage .. then only that person should submit their financials .. vice versa.  I'm not aware of any law that allows a borrower to walk away scott-free because they were involved in a divorce.

Permalink Reply by Neil L. on September 12, 2012 at 3:48am

I just found out that the husband isn't willing to sign! ARGH.  

What's amazing is that the Husband even Filed Chapter 7 BK and had the debt discharged.  Is there anything else I can do to convince BofA to approve w/o his paperwork?

Permalink Reply by joe beauchamp on September 12, 2012 at 4:08am

You have 2 areas - who controls the property and dealing with the mortgage/debt. If the husband has no legal right to the property, what does he need to sign? If he still is on the deed, then you are stuck unless he does a quitclaim, at least. If you are talking about the mortgage/debt, then you need to talk to someone at BofA who is empowered to use his brain. There is no consequence to the husband for whatever BofA wants and they are legally barred from asking him for anything. Come to think of it, they probably have no right to ask him to sign anything - would be considered manipulating a debt after it has been discharged.

Maybe going through twitter at BofA would be the fastest way to get out of the "specialist" pit of paper pushers into an area where toes are not needed to count above 10.

Permalink Reply by Neil L. on September 12, 2012 at 4:26am

1) He would be willing to do a quitclaim, today even.

2) Wow, why didn't i think of that? Great point on the BK and tip on twitter.

My only question about this is that they're not obligated to do a short sale either...