B of A- no more BPOs
Just spoke with a Bank of America negotiator today who's in Delaware. She says many changes are coming, one of them, no more BPOs or appraisals....they are moving into using AVA or AVM (like Zillow). Can you imagine how that will screw things up> no actual human being looking at our listings...?
Also, have you noticed on Equator you can't just upload docs to the library, you now have to speak with the negotiator and spew lots of info including monthly expenses in order to "qualify" for the appraisal...
B of A used to be the easiest approval letter to get for me...geting a little worried here.
Replies to This Discussion
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Permalink Reply by Lucien Vaillancourt on
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I recently had a short sale declined by BOA because BOA insisted on a higher price saying they have info that shows that the market value is higher. I knew this was strange since the agent who did one of the BPO's works in my office and told me what he came in with for value. I also called the other agent who did a second BPO who told me he came in with a similar value. Each of those values were at least $10,000 less than the price BOA would agree to. BOA must have been looking at useless info from Zillow. Now they can take the home back and sell it as a foreclosure losing $20k - $30k more. Smart people over there.
John, I had a deal where Green Tree was the second and would not approve the short sale unless the commission was reduced to 4% even though the lower commission would not increase the money going to them. When I questioned them about it the negotiator said, and I quote, "If we have to lose everybody has to lose, that's our policy". When I refused they closed the file. I called back a week later and caved not wanting my seller to suffer.
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Permalink Reply by Jill Slyter on
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Tried to sell the same property twice for a client, one a full price offer, w/no response approvals on either and the buyers walked. I contacted our state Senator and filed a complaint. It is in a Senate investigation and BOA must reply. Next...the banking commission. Until people complain to the right people, nothing will happen. We will go to national news too. Don't threaten, Promise you will do these things.
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Permalink Reply by Patricia Broghamer on
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Does anyone know why a Realtor can not be contracted to become a negotiator for a Bank? A Realtor who is in the same state as the property but is in a different city. The Realtor would know that states Real Estate Laws and contracts and the closing process including closing attorneys, etc. Our Housing Market is an extreme situation and some rules need to be adjusted for this overwhelming market of short sales and foreclosures in Homes and Vacant Land. We have buyers wanting to buy...but not wait 3 - 9 months to close. The Banks would have a knowledgeable person to work with to negotiate the offers, and get them closed in 45 days. There would be an urgency to buy a "great deal" by the buyer, get a low interest rate and become a homeowner. It may stop the "Domino Affect" by contracting a Realtor's experties. All without training a "hamburger flipper" and paying them benefits, vacation, sickpay, insurance, 401K, and a supervisor and trainer for these new negotiators, etc. Think about it .....there is no rush for the new hired hamburger flipper to get the files closed....it is job security if they don't. Meanwhile the foreclosure proceedings continue and the bank has a bigger loss than if it was short saled. They now own the problem and pay huge legal fees to foreclose, the borrow's credit is ruined for up to 10 years and cannot buy another home in that time. If the Realtor had to put their license in Escrow, and not continue to Sell Real Estate...that could also be done. We all specialize in something, why not as a negotiator for the Bank? Thank you. [email protected] in Charleston, SC
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If that was a Fanne or Freddie loan, they have an agreement with NAR to pay 6% commission and if anyone questions that, including the servicer Green Tree, Fannie and Freddie want to know about it. Copy and paste this link and read the document https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0903.pdf Servicing Guide, Part VII, Section 504.02: Contacting Selected Borrowers Effective March 1, 2009, closing a preforeclosure sales may not be conditioned upon a reduction of the total commission to be paid to real estate agents to a level below what was negotiated by the listing agent with the borrower, unless the fee exceeds 6 percent of the sales price of the property in aggregate. Services are reminded that they must continue to obtain any approvals that may be required by interested third parties in connection with preforeclosure sales. Services should contact Fannie Mae's Servicer Support Center at 1-888-326-6435.
(Ask for a Level 2 Supervisor) They will return you call immediately. I personally used this phone number and I had a return call from the negotiator within 2 Hours on a Friday Afternoon. Fannie can light a fire under these servicers like no one else. www.Homepath.com is Fannie mae's inventory of homes that the short sale negotiator could not get close before foreclosure. Fannie does not want these homes in their inventory, remind them of that when you call them. I have had other agents read this and they called or emailed me of their success. Good luck. Pat Broghamer in Charleston, SC [email protected]
Vaillancourt said:
I recently had a short sale declined by BOA because BOA insisted on a higher price saying they have info that shows that the market value is higher. I knew this was strange since the agent who did one of the BPO's works in my office and told me what he came in with for value. I also called the other agent who did a second BPO who told me he came in with a similar value. Each of those values were at least $10,000 less than the price BOA would agree to. BOA must have been looking at useless info from Zillow. Now they can take the home back and sell it as a foreclosure losing $20k - $30k more. Smart people over there.
John, I had a deal where Green Tree was the second and would not approve the short sale unless the commission was reduced to 4% even though the lower commission would not increase the money going to them. When I questioned them about it the negotiator said, and I quote, "If we have to lose everybody has to lose, that's our policy". When I refused they closed the file. I called back a week later and caved not wanting my seller to suffer.
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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
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True BUT, if the seller files BK, isn't the deficiency wiped-out and therefore there is no taxable event? At least that's what I have seen with several clients already. In fact, I have a transaction right now, Balance on 2 loans $1.1+ Million, selling in the $700's - the $300,000 deficiency was "wiped-out" in their BK and therefore there's nothing to be taxed.I have another seller, he owes almost $400K, property is worth & selling in the high $200's. One loan / FreddieMac. He applied for a loan mod twice and was denied twice. I put it into Equator completed the tasks. When the BPO came in, he got a call from BofA offering a "Loan Mod". The principle balance remains the same, and he was offered 2% interest over 40 years PLUS an additional $600 per month (for 40 years) to payback the past due payments plus a restriction the proeprty cannot be sold / transferred until / unless the note is paid in full. The seller decided it was a foolish proposal because even 10 years down the road, he'll still be upside-down.
I think moving to blanket Loan Mods may only delay more people filing BK. Many will accept the Loan Mod simply to get the bank off their backs temporarily. I also believe some will take the deal but not many here in SoCal.
The newest tend here is waiting until 1 hour prior to Trustee Sale to file BK, which stops the sale and allows them to stay in the property for quite some time.
Just for the record, I do not condone BK as a tool to remain in a property.
Thom Colby
Broker
Newport Beach CA
Jim Stewart said:The only problem with BK, Thom, is that tax liability is NOT dischargable in either a chapter 7 or chapter 13. The filer still has to pay any tax owed.
Thom Colby said:Harry, as usual - "well put" - I'll add one comment - that is, when people can no longer get Debt Relief, realize the loan mod is simply a reduction in payment and spread over a new 40 year term, the only avenue left is Bankruptcy. I think we currently see lots of people filing, but as the next 19 months evaporate, we will see many more people filing BK.
Harry Clay said:Put two & two together:
The Mortgage Debt Relief Act is due to sunset in Dec 2012...19 short months from now. Whether it will be extended is anybody's guess.
Right now, the MDRA is essentially the upside down homeowner's Get Out of Jail Free Card. The banks hate it.
With the MDRA, the IRS is forgiving the taxes on the unearned income on a shortfall, whether foreclosure or short sale.
The MDRA makes the strategy of a short sale worthwhile to the seller, especially in non deficiency judgement states like CA.
If banks suddenly start becoming more "cooperative" on modifications after all this time of dodging them...it doesn't change the fact that the property is still hopelessly upside down, unless they're going to start talking principal reductions.
Temporary reduced payments on a mod will solely extend the float period UNTIL the MDRA sunsets.
And THEN if that still updside down homeowner defaults after 2012...BOOM.
The IRS will go from being the short sale seller's "friend" to being the lenders' "ally"...because now the seller will be faced with the double whammy of both losing the property to the bank and owing taxes to the IRS on the loss.
Once unearned income becomes taxable again (like it was previously for so many years)...I don't think we will see nearly as many people want to discuss a short sale, & those facing foreclosure are going to have to try to hold on even harder, as well.
Offering a last minute mod to a seller who was ready to go with a short sale is just the lender's way of waving candy in the face of desperate upside down sellers, with the intention to stall them out until their Get Out of Jail Free card expires.
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Equator never misses charging your credit card to use their service....do they.
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It's free unless you add more than one Zip Code
Patricia Broghamer said:Equator never misses charging your credit card to use their service....do they.
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My experience with the banks is not everyone you speak with understands what they are saying. That is why it is easier to hang up and call back to speak with someone that does. BofA has with Equator used Zillow as an estimate for the section in the initial process of putting in the offer. Not the sales contract the online section you fill out for a price that you are submitting. Nine out of ten they go by the Zillow price. So they will always start at this ridiculous number. Then you are allowed to submit forms and the actual numbers and that is when you put in the correct price. I wonder if that was what the negotiator from BofA was talking about. By going stritcly off of Zillow you will see more people stop working on BofA short sales like they did previously when they were really bad and it will only hurt them and the housing market. Sound like IndyMac in a way. They do BPOs, but for some reason (at least with me) the first BPO almost always comes back at what they owe on the mortgage. So you just don't take the first one as serious. I've had a conversation with a negotiator at Service Link on that and one property which was truly disgusting he agreed could never sell at the number they came back at, but that is the number they gave him and that is what he has to go with. All this does with BofA and the other banks is delay the inevitable, but they truly love playing games.
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Permalink Reply by Michael Schneider on
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Short sales are unlikely to go down in total volume. Everyime there is anticipation of big changes that are going to alter everything, it doesn't work out that way.
Here is a tweet for Sunday, May1.
I'm teaching a class next week on distressed assets and short sales, in particular. I taught perhaps 7 or so classes in 1Q2010 when I started up this part of our business, marketing, basically.
So, I updated the intro "market conditions" section: Negative equity numbers, short sale volumes, and mortgage delinquency rates. The driver of demand for short sale.
Conclusion: Over the past year the underlying drivers of short sale demand have not change significantly. Small increase in negative equity, small decrease in mortgage delinquency. These changes are not sufficient to alter the market forces that create demand for short sales.
What the Servicer or Investor may prefer will be a relatively minor factor in market performance.
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Permalink Reply by Jim Hale on
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Is any one at the helm at BofA. They are like a rudderless ship at sea.
Not unlike the country.
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I won't believe it until it happens. Not much we can do to prepare for this type of decision. It seems there is a lot of talk about BOA on various topics. Who knows where the info is coming from. I know one thing, I do not and will not trust a negotiator, they are trained to tell lies.
I can be completely wrong but I thought there were some strict requirements on having an analysis done of some sort of debt forgiveness by banks. My understanding is they still get audited on these files and will need to have the necessary documentation for each file. On top of that I can't imagine their investor who is the one who actually makes the decision would be OK with approving a Short Sale without some sort of valuation showing the value vs. net. The value that comes back plays a very important role in their calculation on estimated loss.
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Permalink Reply by Wendy Martin on
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check this out:
Bank of America Brings in Industry 'Heavy-Hitters,' a DS News Exclusive
04/28/2011 By: Carrie Bay
Bank of America has assembled what you might call a “Dream Team” of default servicing executivese to head up critical areas within its Legacy Asset Servicing division. Collectively, this new team has more than 70 years experience working with distressed borrowers.
John Berens joins the bank as retention executive. In this role, he will be responsible for loan modifications and collections. Berens’ anticipated start date is May 9.
A 25-year mortgage veteran, Berens most recently served as the default servicing executive for JPMorgan Chase. His prior roles include head of loan servicing for Washington Mutual, head of servicing for Advanta National Bank, and previous executive servicing roles at JPMorgan.
Patrick Carey joins Bank of America, effective May 16, as the Held for Investment (HFI) and specialty segments executive. Carey will oversee portfolio management and operational execution as it relates to the servicing of BofA’s HFI portfolio, the Servicemembers Civil Relief Act (SCRA), and default servicing complaint resolution. He will also serve as operational liaison in default servicing to the GSEs, HUD, as well as external constituents.
Carey brings with him over 20 years of industry expertise. Previously he was CEO of Titanium Holdings, the parent company of Titanium Solutions, a provider of loss mitigation outreach services. Carey has also served as EVP of default and retention operations for Wells Fargo Home Mortgage, Inc. where he was responsible for all the bank’s default functions.
Bob Hora joins Bank of America as executive in charge of short sales, REO, and deeds in lieu. He will be responsible for streamlining the bank’s efforts to leverage short sales and other property liquidation tools to prevent foreclosures. He will also oversee the management and marketing of properties in the bank’s real estate-owned portfolio. Hora starts with the company on May 23.
Hora is a 25-year mortgage veteran who is currently the national servicing operations executive for Fannie Mae. His previous roles include head of enterprise loss mitigation at GMAC-ResCap, head of default for Homecomings Financial, and various leadership roles within Wells Fargo Home Mortgage.
Tony Meola, Bank of America’s SVP and default servicing executive, says these new high-level additions to his team represent an extension of the company’s commitment to its distressed borrowers.
“Our true north is to deliver fast, fair, and final decisions to our borrowers in loss mitigation resolution,” Meola said. “When you think about the plight of the home borrowers today, you want an anxiety-free process…you want to be proactive, responsive to them, and frankly, you want to be approachable and have accessibility.”
“So for us,” Meola explained, “we’ve sort of bundled that up to ensure that we make resolutions to their needs in a way that is fair, number one. That it’s fast because borrowers want resolution quickly in this time of need. And that it’s final so there’s some finality in their situation. That’s the mantra of the organization and that’s how I will manage and judge our success.”
Meola himself joined Bank of America just 60 days ago from Morgan Stanley’s Saxon Mortgage where he held the position of chief executive officer. He says the drive to bring in top leadership to compliment the “significant talent” already on board began with Terry Laughlin.
Laughlin was named to head the new Legacy Asset Servicing division that was formed in early February for the purpose of handling the default aspect of the bank’s portfolio.
Meola explained that this division’s total focus is on the distressed borrower and delivering to each individual borrower the appropriate level of loss mitigation, and ultimately the correct resolution for that borrower’s situation.
This customer segmentation “is designed with one thing in mind, and one thing only, and that’s to provide the most focused and best service for those customers,” Meola said.
It’s this type of commitment to “execute at the highest level of precision and accuracy” that Meola says makes the three new additions to his team – Berens, Carey, and Hora – an ideal fit for the organization and will position Bank of America as the “standard of excellence” in default servicing.
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