Bank of America co-op nightmare
I have a short sale that I initiated in December. The seller was accepted in to the co-op program and I was given a suggested list price. The property was listed and because the sale date was scheduled in January, the seller moved out in case a postponement wasn't granted. All the feedback received was negative as a result to damage to the structure of the house. We finally got a low investor offer and we submitted it to the bank along with photos of the damages and copies of all the negative feedback we had received.
In the interim, we received a postponement of the January sale date as well as the rescheduled April 4th date, which was reset to May 30th. I also asked for another postponement. We finally received an approval 10 days ago for the offer price and the seller receiving over 28k. The buyer scheduled the inspection right away. To my horror, the buyer walked during the inspection period!!
Since I did get a back-up cash offer with a zero inspection period, I called the closing officer right away to see if we could get a soft decline and move through with the new buyer. They said no because the sale date was within 14 days and sent me a decline letter. The very next day, the sale date was cancelled.
I contacted the negotiator that I had been working with to see if she could assign herself to the file since she was familiar with it and she responded that the seller no longer qualifies for the co-op program because "it has surpassed the 120 day marketing period"!!!
Can anyone offer any suggestions on how to handle moving forward as quickly as possible and is it true that the seller no longer qualifies for the co-op/HIN program? I have this other contract so does that disqualify the seller for these programs? After re-initiating it I was going to upload a copy of the previous approval, the photos and the feedback right at the beginning.
As if things couldn't get worse, the seller's HOA just sent her account to an attorney. The seller said they tried to pay as long as possible but just couldn't anymore since they are paying rent.
Any insight as to what the best way to move forward would be greatly appreciated!! Thanks in advance.
Replies to This Discussion
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Permalink Reply by Brian Wood on
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Hello, I had the same thing happen, after the 120 day period had expired due to stalled negotiations on a 3rd lien. We called back in and were able to do the verbal interview to qualify for the CO-OP program again and eventually did close the short sale. They knew we were working on the same offer as before, so in my case having an offer didn't disqualify them from the program. I had to jump through all the Equator hoops again but it did get closed.
Good luck.
Brian
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Permalink Reply by ElizabethWeintraub00697006LyonRE on
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The only problem you might find yourself up against is a change in the sales price when they update the BPO. You can start the Co-Op process again. I did it with a seller who wasn't ready to move as quickly as we got it approved. The buyer agreed to wait. We started the process again from scratch -- it was a battle but it can be done. And, in fact, I'm doing it with another seller who is doing a Co-Op and the investor is Fannie Mae. Fannie Mae set the price so high the marketing period elapsed. So we started again with a new offer and a new Co-Op, but it took us 5 months to get it.
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Permalink Reply by Rachael Babinchak on
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My new mantra is "NBAWBOFAS!" Never Believe a Word Bank of America Says, it can always be done they just force us to problem solve and escalate to the right people, while hoping we give up. #1 in Consumer Complaints and #1 on FHA's list of foreclosures...they developed a special department just to handle BAC escalations.
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Permalink Reply by Christina Waymreen on
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The cooperative has a certain amount of marketing time they offer which is 120 days. If you lose your buyer and the 120 days are up from the original agreement signed then the coop is declined. Even if you get a new buyer the 120 day agreement supersedes this. Unfortunately, you will have to re-do and go through the normal short sale. You might be able to request relocation assistance but do so on the first HUD. Put in a reasonable amount. It's still negotiable. As for the HOA get a hold of the lawyers. Explain, and try to get the amount owed. Put this amount as well on the HUD. Again all is negotiable. While you do this advise the sellers that the HOA MUST be paid even if they can call and do so in installments. If the lawyers put a lien on the property then the short sale is shot. The lawyer fees can be negotiated but every month they will and can tack on a few thousand if you don't start calling now and doing something about it.
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