I have had enough of BOA. It has been a nightmare the last ten months working this short sale file. I have gone over hurdle after hurdle. Not a 300 meter hurdle race how about a 300 mile hurdle marathon. I received the highly anticipated email that the file has been approved. The seller had to agree to a 25k promissory note which was done. One week later on May 10, 2010 the property was foreclosed on. How can this be? I emailed BofA and they emailed Freddie asking them to resend the loan in order to get the closing done. I recieve this email today.

 

"Although this file was approved it appears as though the investor is not going to rescind the foreclosure and the deed has been filed. I have been advised that you will need to contact the investor about getting the property.  The file was approved prior to the sale date and upon a request to postpone being submitted, it came back denied. "

Bank of America

This response says the letter came back denied to postpone the foreclosure but yesterday there was no response to the request submitted, I believe they just sent it back today along with the them saying the investor will not rescind.I called Freddie Mac and Rodney said,"Oh now their putting this on us!" "Call Home Steps Department @ 1800 972-7555 and hit prompt 1,2,6. You will have to speak with them now." I called and spoke with Lovern, they set up an inquiry and this is suppose to go to corporate. She said they were not allowed to give out time frames as to when we would get a response. I was given a reference number and that is it.

 

I have closed 100% of my short sales when they have had an offer submitted, no matter what hell and furry it caused in my life, it is about taking care of my clients. This deal looks real dead to me, even my broker said so. I don't accept that answer! He was able to get one rescind because the foreclosure was not in the paper properly. Missouri is a non redemption state. My second job is a Home retention specialist and many assignments are going to homes after foreclosure to qualify them for reinstatement. What gives here? I left messages for higher up in BofA but has a 24 hr turn around response. The seller has been calling BofA as this is very detrimental to him. He wants to speak with a lawyer about his options. What about us Realtors, are we do nothin when I (the listing agent put 11 months of time, energy and money into this listing. 

 

The Short Sale is approved with a closing date before June 29 2010. how can the foreclose on it and then not be willing to fix it. I would like any and all comments. Has this happened to any of you? Any Advice on how to save this deal? 

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Replies to This Discussion

Hi Laurie,

Wow, you definitely have my sympathy on this transaction. Has the Deed recorded (i.e. the title reverted back to FNMA)? If it has recorded, it's a brand new ball game. In Oregon, title passes by deed and deed alone...you don't get to "rescind" a deed. If it's a done deal, you'll have to pursue FNMA to list/sell the property to your client. (typical disclosure, I'm not an attorney, etc.)

If only the foreclosure sale has occurred, but the deed hasn't transferred and recorded, you may be able to rescue your sale. FNMA is likely to be the one to help you. With BofA as the servicer processing the short sale, it's still going to be difficult at this point to get them to do anything. But don't waste any time if the deed hasn't recorded yet....there is still hope!
The deed has been filed. This is what the negotiator emailed me. " Although this file was approved it appears as though the investor is not going to rescind the foreclosure and the deed has been filed. I have been advised that you will need to contact the investor about getting the property. The file was approved prior to the sale date and upon a request to postpone being submitted, it came back denied. "

The tax records show my clients name still, if it was recorded then it would show the investors name I would think.
Who do I call and what can I do?
Check the legal records....have your Title/Escrow person pull the deed or go to the Courthouse and find it yourself. Tax records are typically delayed and BofA has nothing to do with recording the deed. You need to be on top of this to know the real status.
They did record it. the bought it back for 328500.00. The sales price was 340k plus a 25k promissory note! Now what?

Darla Maddalone said:
Check the legal records....have your Title/Escrow person pull the deed or go to the Courthouse and find it yourself. Tax records are typically delayed and BofA has nothing to do with recording the deed. You need to be on top of this to know the real status.
Laurie

Unfortunately Bank of America pulls this kind of crap all the time and they think they can get away with it. Darlas message above is simply incorrect in that even though the lender has sold the property at auction and recorded a trustee's deed, the whole process can be reversed. What you need to do is not take this lying down. Bank of America needs to understand that we work with them in good faith and they need to reciprocate that good faith. From what I understand is that you have a short sale approval letter good through 6/29/2010. You need to hold them to that. If I were you I would consider calling the Office of the President for Bank of America at 800-801-4860 and explain to them the situation. You have to move quick though as the investor Freddie Mac will likely assign an REO agent to handle the disposition of the REO which means they will contact your seller and offer them a 'cash for keys' agreement.

I think I speak for a lot of us who simply do not understand why Bank of America cannot get it together. I would prefer if they simply did not even allow short sales if this is the way they act. Thats my .02 cents. Good luck and let us know how this turns out.

Sam
Thank you Sam. I have spent all day today working on this file. I had the eviction attorney call me in response to the inquiry I opened through The Home Steps Program that Freddie Mac ( the investor ) told me to do. I sent her the emails of the approval and the foreclosure papers recorded. I was informed I will receive a call Monday morning from Jeremy.

I just got the run around with BofA, switching me to different departments all day. I just called the number you gave me and Connie said I have to write a complaint and fax it to 805 520-5019 before anyone will speak to me.

Sam Purtle said:
Laurie

Unfortunately Bank of America pulls this kind of crap all the time and they think they can get away with it. Darlas message above is simply incorrect in that even though the lender has sold the property at auction and recorded a trustee's deed, the whole process can be reversed. What you need to do is not take this lying down. Bank of America needs to understand that we work with them in good faith and they need to reciprocate that good faith. From what I understand is that you have a short sale approval letter good through 6/29/2010. You need to hold them to that. If I were you I would consider calling the Office of the President for Bank of America at 800-801-4860 and explain to them the situation. You have to move quick though as the investor Freddie Mac will likely assign an REO agent to handle the disposition of the REO which means they will contact your seller and offer them a 'cash for keys' agreement.

I think I speak for a lot of us who simply do not understand why Bank of America cannot get it together. I would prefer if they simply did not even allow short sales if this is the way they act. Thats my .02 cents. Good luck and let us know how this turns out.

Sam
Could be the mistake of the negotiator. I was told that the negotiator is the one who asks for the extension. I have one right now with Freddie Mac, and it is supposed to go to foreclosure on the 19th of May. I have spoken to the attorney doing the forclosing (THIS IS AN ABSOLUTE MUST IF YOU EXPECT THEM NOT TO FORECLOSE) and have kept them informed along the way. The girl in the foreclosure attorney's office has indicated to me that she will contact BoA and make sure they are all on the same page. I informed her that the negotiator has asked for a 30 day extension, and will check once more will all concerned on Monday.
Keep the foreclosing attorney in the loop at all times!!! The negotiator has now requested a 30 day extension and this is in the folder (on the computer) for all call center and whoever looks at the file, to see.
The negotiator emailed me today." I am still in the process of getting the issue resolved in regards to the foreclosed property. As soon as I have an update I will advise. "
Crossing fingers. The buyers agent called last night and said they are walking. I need this letter so they will just close the deal on the 25th.
This is a touch different as an owner we have been trying to get our short sale through for a year four lost offers and the current one hanging on... escalation.... task after task... alot of talk...I am afraid they don't want this offer the house is "too nice" why not just push us to foreclosure slap us with a judgement and get a beautiful house back?? what can be done so that we are not "surprised" with a foreclosure? Any and all suggestions would be appreciated...Is there a class action for BOA not taking valid deals???? We may be caught in the tarp problem..It was a former Countrywide loan Thanks JoAnn
People need to start logging complaints at a Federal level... www.helpwithmybank.gov under Mortgage i have done so!
Good, thank you

joann durand said:
People need to start logging complaints at a Federal level... www.helpwithmybank.gov under Mortgage i have done so!
Updating the file status: I emailed the negotiator about us needing to close by May 25th 2010.
Letisha can you tell me what is going on with the rescission? We are suppose to close by May 25th 2010 which is Tuesday. I have no idead what Freddie and BOA have done to resolve the issue.

She emailed me and told me: I have been advised that once the closing takes place and funds are exchanged that is when the rescission occurs.

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