Seller was fired from Gov job, applied for loan mod in Oct. 2012, no decision yet. Seller has subsequently been diagnosed with mental disorders, can not find employment & has exhausted all funds. Seller gets $180 temp disability & $200 food stamps, applied for Soc Sec Disability-still pending. Wants to do short sale & move south to live with family that can help her live and get the treatment she needs. 

I spoke with CRM and was advised that loan mod process has to complete before seller can be considered for short sale. Said not processed yet because RMA (received in OCT) not filled out correctly. Advised CRM of seller's unemployment & health disorder & asked if will move file to short sale. Said no, has to be denied loan mod first. CRM states once corrected RMA is received, can take 30 days or more for review. Said if denied LM, will move to short sale.

When does common sense prevail? Unemployed, mental disorder. Obviously seller won't qualify for LM & even if approved, she can not pay because her income is only $180 month.

CRM not budging on completing LM first before moving to short sale consideration. Seller living on tight rope, trying to keep utilities on until short sale done and really needs the relocation assistance to move. Seller is fragile mentally and this is adding more stress.

 

How can I get this moved to short sale?

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Replies to This Discussion

This story blows my miind. Have you tried the twitter response team, or other escalations mentioned on this site? 

Michael,

Thank you for responding. Just spoke to CRM this morning and was hoping to get a positive response. I will escalate.

I was going to suggest the twitter response team, but I see Michael already hasl.  They have always been responsive and effective for me. Be tenacious and best of luck for both of you. 

It may help to have a feel for the components here. FHA doesn't bend rules and can be obtuse. BofA is bureaucracy first, anything else 2nd, but in this case, they must strictly follow whatever FHA says. BofA has pushed down everything to the lowest personnel available - more "follow the rules - do NOT think". And what did you do? Gave them a partially filled in RMA? You sent that to someone who isn't allowed to put a period at the end of a sentence for you because he could get into trouble for that. Yes, it is absurd, but in FHA's case, a part of BofA's absurdity is rational.

Expect to run into things repeatedly, like, "you didn't say how the property is maintained." Seriously, with the homeowner living there, I have had their document rejected because of that. So, what you do is step around the blithering and just do everything you can for your client. They want the signature in blue, color it blue for them - don't waste your breathe and sanity trying to make them be reasonable. Think of all the manyears both FHA and BofA have spent in creating "unreasonable". Instead, go do something easy - solve global warming or cancer.

I like your response, Joe. Our segment of the business is "Alice in Wonderland".

I'll make a bet though, that the honeowner is the one who applied for the mod. No pro would submit for a mod on $180 income. 

Well said.

You mention common sense and BofA - oil and water dear friend friend, it'll never happen.  Anyway, if this is FHA the loan mod rule doesn't apply to vacant properties.  So if the seller really needs to move, have her do so and then tell them to move to short sale and out of loan mod.

Nah, you're being logical. Apparently you weren't sitting on the phone with BofA for 4 months this summer trying to get FHA short sales started. ;-)  The SS dept created a template for the CRM to fill out saying, "are you really really sure we should do a short sale? We know you recommended a short sale but did you look into doing everything else possible, did ya, huh?" and if the CRM (who didn't know about this template) didn't fill it out, the SS dept refused to budge - no matter how many escalations the rep did for you. So, don't count on being logical. Many of my calls had me pointing out in a measured voice that the property is vacant and there is NO other alternative to a short sale for FHA. Of course, I'm wrong - if the seller states that the property is NOT being maintained, whether he lives there or not, FHA will not allow a short sale, either, not even a DIL, just a foreclosure - maybe 3 years later.

Nope, you can't expect even the simplest of logic to be used when it comes to BofA rules - including following investor guidelines - if some BofA dept has other rules.

I think unless there is an emergency relocation, then it has to go through the loan mod process.

Joe Beauchamp is spot on.

You need to escalate and speak to a person with authority. I have really good luck with the Jacksonville office, and the supervisors in charge are on the ball.

Hi, not true at least for me....I had 4 sellers requesting release from loan mod to move forward on short sale.  They need to send in a written request.  All 4 were completed and closed.  :)  PS, escalate via Twitter or escalation team if this continues. 

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