Replies to This Discussion

Permalink Reply by joe beauchamp on October 8, 2010 at 9:37am

Just keep in mind that BofA halting in 23 states is because those states are easier for the politicians to stop the foreclosures. This "voluntary" stoppage of BofA is because it is 3 inches away from legislators DICTATING by law a stoppage, so voluntary seemed better to BofA - not so voluntary.

I have seen some side effects - several normal things taking huge amounts of time at BofA now..

Yeah, I wish a couple of those houses had NOT been mine..

Permalink Reply by Vanessa Calhoun on October 9, 2010 at 2:14am

I think that this is actually good news for those who have BOA loans or have loans that are serviced by BOA. First of all, we can expect local REO inventory to shrink proportionately, thereby making current short sale inventory golden in the eyes of a buyer looking to purchase a home that's actually listed at current market value. We may even see an increase in area home prices, but it wouldn't really be organic. I think that we all know why it's being done - we live a very politically motivated society. However, the "why" really doesn't matter to thousands of homeowners. I'm not sure how this will affect our short sale approval times with BOA, though.

Permalink Reply by M C on October 11, 2010 at 10:38am

I have submitted a short sale with BOA and keeping notes on the process from beginning to hopefully a end.
At the moment all this forclosures crazyness in the news is just to wild for the average homeowner to comprehend.
Here in California the news is like a 2 sided sword, we are one of the foreclosures heaven states. Inventory, Inventory(trustee sale state). Which puzzles me how BOA can act like all 50 states are the same. Some homeowners that are not in forclosure are afraid that they are thown in the pot because market values may tank just to move the Inventory on top of Inventory when this madness come to a halt. It is like permeate of the housing markets. It is passing through and could cause side effects.

Permalink Reply by joe beauchamp on October 11, 2010 at 6:47pm

BofA can do nothing quickly - I gave them a short sale, cash, 50% ABOVE BPO, started from the beginning prodding them to rush it - 2 reasons, 1) it was time sensitive; 2) wanted to see if BofA could do anything fast - this being an excellent bonus for Fannie Mae. Well, they can't - 2 months later, Friday the contract is up - still sitting on it.

So, is it at all likely that all of a sudden they could put everyone into foreclosure when this current status changes? Well, for one thing, due notice must be given, generally meaning months, for another, BofA would shovel up a pile of gold and throw it in the trash rather than do anything fast, and for another another, there would be an outcry several times the magnitude of this "quiet" little fiasco of theirs if they suddenly multiplied foreclosures by 2, 4 or 8 times - which is still probably not enough to effect people close to foreclosure and not in it. And then, how about a bit of a backlash from the court system that hasn't been able to handle these foreclosures for years now?

No, I think it would be a very very long shot bet to bet that BofA will create a whirlwind of foreclosures when this is over.

Let's see, what would a thinking bank do to not tick off the investors - how about put more effort into getting short sales done so that the investor doesn't lose MORE money sitting while BofA is...uh....just sitting? How about what they should have been doing all along? OK, it's BofA - I have a dog like that -- do ANYTHING but what it should do even when given no alternatives - sit, fight, complain, but certainly don't follow the needed flow to make things better...

With any luck, and I have not seen any awakening of Fannie Mae, **someone** will make BofA become more responsible for things. But if their biggest investor is still snoring at the wheel, I doubt much will change - some eyewash, foreclosures will start off slower for a while and by this time next year, they'll be back to rubber stamping foreclosures again. Oh, didn't I mentioned that they barely have short term memory and seem incapable of anything long term? ;-)


M C said:

I have submitted a short sale with BOA and keeping notes on the process from beginning to hopefully a end.
At the moment all this forclosures crazyness in the news is just to wild for the average homeowner to comprehend.
Here in California the news is like a 2 sided sword, we are one of the foreclosures heaven states. Inventory, Inventory(trustee sale state). Which puzzles me how BOA can act like all 50 states are the same. Some homeowners that are not in forclosure are afraid that they are thown in the pot because market values may tank just to move the Inventory on top of Inventory when this madness come to a halt. It is like permeate of the housing markets. It is passing through and could cause side effects.

Permalink Reply by Karen Hurst on October 12, 2010 at 2:35am

I think it is highly coincidental that this is happening just before elections and also the fact that it is not just BofA, but other banks all operating the same way. Robo signers everywhere? Amazing!

As for the whole 50 states, I think they are just doing that because it is too confusing to them to have to explain the difference between judicial and non judicial states!

If you think RE was bad before, get ready for much worse. It may give the homeowners more time and I am sure there will be "some" that were foreclosed on improperly due to the sheer volume of it all.

I would expect this would start putting a rush on short sales, but I am not predicting anything.

Permalink Reply by Alan Remigio on October 12, 2010 at 3:10am

This is great for all the PRE-FORECLOSURE inventory we have! Continue to close short sales while you have this window of opportunity. If you remember, BofA and PNC were two of the major players in buying up the notes of many subprime lenders as well as assuming failed bank assets. The ugly side of this is the exceptionally high delinquent notes as well as fraudulent ones.

Speeding up the process in financial markets via "rubber stamping" is a no-no in financial/investment markets. BTW it was done frequently during the mortgage boom, too, according to one former mortgage banker, I know. Individual analysts have argued that as much as 23% of mortgage loans may be fraudulent, which is why forensic audits are an important part to our short sale process, should we believe there is a descrepancy.

For the lenders halting foreclosure sales, files are now sitting there, work on yours, press the issues, negotiate hard and escalate...while the window is there, foreclosure is not an option for them, at this point in time.

Permalink Reply by Kimberley Kelly on October 12, 2010 at 3:18am

I'm so with you here. I think this is a great window of opportunity to close some deals! I'm really pushing this last quarter..the new SB931 law, the freeze on foreclosures..all good for Short Sales in CA. I've explained to my Sellers..let's go!!!

Alan Remigio said:

This is great for all the PRE-FORECLOSURE inventory we have! Continue to close short sales while you have this window of opportunity. If you remember, BofA and PNC were two of the major players in buying up the notes of many subprime lenders as well as assuming failed bank assets. The ugly side of this is the exceptionally high delinquent notes as well as fraudulent ones.

Speeding up the process in financial markets via "rubber stamping" is a no-no in financial/investment markets. BTW it was done frequently during the mortgage boom, too, according to one former mortgage banker, I know. Individual analysts have argued that as much as 23% of mortgage loans may be fraudulent, which is why forensic audits are an important part to our short sale process, should we believe there is a descrepancy.

For the lenders halting foreclosure sales, files are now sitting there, work on yours, press the issues, negotiate hard and escalate...while the window is there, foreclosure is not an option for them, at this point in time.

Permalink Reply by Mike Sher on October 12, 2010 at 10:58am

I think this is all politics. This sadly is another attempt to show how Washington cares. They care about reelection. January we will have a record number of foreclosures.

Permalink Reply by Mike Sher on October 12, 2010 at 10:59am

if they want to do something, work on getting this country employed again!!!

Mike Sher said:

I think this is all politics. This sadly is another attempt to show how Washington cares. They care about reelection. January we will have a record number of foreclosures.

Permalink Reply by Kylee Roe on October 12, 2010 at 4:32pm

Has anyone heard if the Trustee sale timeline in California is also halted? I think not, since I haven't seen it published anywhere. So while the Foreclosure may be halted, homes that went into, or were in default, probably still have the clock ticking. When b of a resumes "activities", many folks will be right on top of trustee sale dates in Cali, and falsely lulled into thinking they too were delayed. Any info anyone?