I took a file that originally was serviced by BOA and after submitting the RMA HAMP to begin the short sale process BOA transferred the servicing rights to BayView Servicing.  This file is only a 1st mgt and not Fannie or Freddie. I later learned the beneficiary of the note is BOA which they refused to disclose prior. I resubmitted the RMA to Bayview to go for HAFA for the $3K in relocation assistance for my client.  Bayview was a lot easier to work with as compared to BOA. The negotiator confirmed the borr qualified for HAFA and we executed all the forms. 

A cash offer came in at above market value. The negotiator was very happy because the file has a net to servicer/investor of 93% of BPO and stated your approval should be completed next week, 3 weeks later he said BOA does not want to pay the HAFA relocation fee and to remove it from the HUD. The borr/seller has live in the home for 5 years up to last October 2012 when she had to move from AZ to NY to help her mother who is dying of cancer. The home has been vacant pending the sale. Also he mentioned the past due HOA fees (less than six months) might be a problem with BOA. Oh, by the way the fee for short sale services too, needs to be removed. This is only a $105K sale so it’s not as the realtors are making a killing.

 I find the whole situation an opportunity to squeeze a very last penny from this file and ignore all those Government programs advertise and promoted by BOA and Bayview.  As an investor in the buying mode I have close many SS files in the 80% to 81.5% of the BPO value and had fewer issues to content. Has BOA lost their mind?  Any comments or suggestions are greatly appreciated.

 

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Al, interesting......  I have noticed all of the VACANT properties are now ineligible for HAFA and the banks are removing it from the HUD.  I can't say I'd blame them what's to relocate if the proeprty is vacant.  As for the SS Negotiation Fee, I have always said that's the Listing Broker's responsibility.  If the Listing Agent / Broker wants to use a negotiator (I am a 3rd party negotiator) then the Listing Broker / Agent should pay for it from their commission - it was their choice to use a 3rd party.  Past Due HOA fees are a "Personal Debt" of the owner and if the lender does not pay them, the owner will have to satisfy it one way or another.  I suggest trying to settle with the HOA for less than what is owed.

The very same thing has happen to me - BOA transferred to Bayview, got it approved with HAFA had to remove the relocation allowance, BPO came in lower than buyers offer. Now the 2nd lien holder SLS (the worst) wanted 12,325. instead of the 8500. BOA is offering. Realtor agreed to pay the difference and noted the same on HUD.

Bayview demands a letter from SLS that they accept the 8500. and change the approval letter - SLS will not do so. Although seller, realtors offered to pre-pay the difference and thereby get the letter for 8500. 

This has been going on for 2 months -property more likely will go in foreclosure because two lenders can't agree. Any suggestions anyone.

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