Replies to This Discussion

Permalink Reply by Ben Racela on November 9, 2010 at 4:24am

Bob, what we have done in this situation is to contact the 2nd mortgage and provide them with the approval from the 1st so they are aware of the approval window. Then ask the 1st mortgage for an extension to allow the 2nd time to review. In most cases the 1st will extend, granted they are with the same lender.

Good luck.

Permalink Reply by Mellanda Reese on November 9, 2010 at 4:24am

This may not be a bad situation. I just had to deal with this situation and I found that Bank of America HELOC will expedite n approval if the 1st is scheduled for foreclosure. You have to send the old fashioned package to them along with the legal/court documentation stating the file is scheduled for foreclosure. They will usually have an approval to you within 2 weeks. The downside to this is if the HELOC has MI there is a possibility they will decline the short sale to allow the property to foreclose and get paid off through MI. Hope this helps. Let me know the results. Thanks

Permalink Reply by Peggy K Fowler on November 9, 2010 at 4:36am

Bob:

I have a 1st and 2nd both BOA. You are right only the 1st is submitted thru Equator and the second I actually submitted via fax to the short sale department. The most important thing is to insure when you submitt the package (hopefully they sent you a short sale package) make sure it is complete ~ include every item on the letter. If you are missing even 1 item they will not let you know they just won't respond ~ period.

I submitted my full package and received a fax pretty quick stating they had the package and would respond in 15 days and not to call before the 15th day. They did not state calendar or business days so I called on the 15th calendar day. The gal who answered the phone was nasty rude and said my package was incomplete. It was not incomplete. I re-submitted the exact package once again with a very detailed cover letter and recieved an approval within 7 days for the reduced amount. In hindsight I think I should have submitted the package then waited 24-48 hours and called to confirm they received the FULL PKGS instead of waiting the 15 days. They say don't call but I believe we have to call to confirm they have everything otherwise we lose 15 days only to find out they claim not to have recieved everything. Some of those BOA folks can be really nasty.....but we have to be really persistant and firm and not allow them to try and scare us away. I am not sure why they are making short sales so difficult. I believe they make more money foreclosing on the property, buying it back and selling it again. Could it be a double dip? If they foreclose do they get the MI and then do they get to collect on the REO sale again? I am new to short sales but there is really something not right about what Bank of America is doing with any of the programs that are suppose to help the homeowner that includes HAMP & the SS process seems they are just interested in the foreclosures but why?

Peggy

Permalink Reply by Jeff Payne on November 9, 2010 at 5:25am

Peggy, some of the seconds do go thru equator. In Bobs case, it is not but I have found the folks in the HELOC department to be pretty easy to deal with as far as communication

Peggy K Fowler said:

Bob:

I have a 1st and 2nd both BOA. You are right only the 1st is submitted thru Equator and the second I actually submitted via fax to the short sale department. The most important thing is to insure when you submitt the package (hopefully they sent you a short sale package) make sure it is complete ~ include every item on the letter. If you are missing even 1 item they will not let you know they just won't respond ~ period.

I submitted my full package and received a fax pretty quick stating they had the package and would respond in 15 days and not to call before the 15th day. They did not state calendar or business days so I called on the 15th calendar day. The gal who answered the phone was nasty rude and said my package was incomplete. It was not incomplete. I re-submitted the exact package once again with a very detailed cover letter and recieved an approval within 7 days for the reduced amount. In hindsight I think I should have submitted the package then waited 24-48 hours and called to confirm they received the FULL PKGS instead of waiting the 15 days. They say don't call but I believe we have to call to confirm they have everything otherwise we lose 15 days only to find out they claim not to have recieved everything. Some of those BOA folks can be really nasty.....but we have to be really persistant and firm and not allow them to try and scare us away. I am not sure why they are making short sales so difficult. I believe they make more money foreclosing on the property, buying it back and selling it again. Could it be a double dip? If they foreclose do they get the MI and then do they get to collect on the REO sale again? I am new to short sales but there is really something not right about what Bank of America is doing with any of the programs that are suppose to help the homeowner that includes HAMP & the SS process seems they are just interested in the foreclosures but why?

Peggy

Permalink Reply by Peggy K Fowler on November 9, 2010 at 5:39am

How do you know which ones? When I originally initated the ss thru equator they told me I needed to workout/negotiate the second and let them know even though the second was with BOA also. Is this pretty much case by case?

Permalink Reply by Jennie Blackburn on November 9, 2010 at 5:44am

This is spooky because just seconds ago, a friend that works short sales told me the exact same story. She's got approval on BoA's first and then finds out the second was not included. The negotiator said he didn't know there was a 2nd mortgage. Uh, duh uhh, then why did he approve $3k to the 2nd on the HUD?

Permalink Reply by Mellanda Reese on November 9, 2010 at 5:48am

I found that usually the account numbers are similar. Usually when the clients got the 80/20 loans, etc. A way to always double check is to try and enter the 2nd account number in equator and if they are linked if will tell you it already exist in the system.




Peggy K Fowler said:

How do you know which ones? When I originally initated the ss thru equator they told me I needed to workout/negotiate the second and let them know even though the second was with BOA also. Is this pretty much case by case?

Permalink Reply by Bob Bronte on November 9, 2010 at 6:21am

Thank you Ben, Mellanda, Peggy, Jennie, and Jeff,

Great advice. I appreciate it.