B of A Short Sale needs HELP !!!

I am buying a BOA short sale house. I signed the contract in Oct and received the short sale approval in the beginning of Dec 2011, loan was clear to close on 12/21 and closing was scheduled for 12/29. Few days prior to closing I was informed by the listing agent that second trust approval (also BOA) has been expires and we need a new approval letter prior to closing. He tried to get it before 29th but due to holidays it did not happen.

My rate lock is expiring on Jan 6th. His negotiator told him it could take up to 2 weeks to get the second trust approval but if it takes that long, there is a possibility that first trust approval will expire (due to expire on 20th). He then spoke with another negotiator who indicated that since both loans are from the same bank a new second trust approval is not required and BOA closing agent can issue an approval. He has been trying to contact the closing agent since then but no luck.

Has any one experienced this before? Can a Bank's closing agent issue an approval letter for second trust when both loans belong to the same bank? I want to close on or before Jan 6th so I don't have to pay re-lock fees. Also I have already rented my current house and tenant is moving on Feb 1st.

Any advise / help would be highly appreciated.

You should have an answer in a couple days...it is very important that the listing agent stay right on top of it. Sometimes it is hard to reconize an approval from equator...meaning they don't come back and say "HUD Approved" but as things happen in equator the listing agent should get notifications on a personal level, from the closer at BOA,.. that there is activity in equator. You had asked if you could contact BOA...they will not work with you as they have no authorization from the seller to speak with you as they do with the listing agent. Another thing that can be difficult is that BOA hires a 3rd party company to conduct the negotiating activity of a short sale and often the listing agent does not know he is not dealing directly with BOA as the third party does not tell you they are not BOA..thus the "Approved subject to approval". When you get everything approved BOA will say to submit a final HUD 72 hours prior to closing for their final, final approval. I just closed one, did the 72 hr hud prior to closing, set the closing and didn't get any response within the 72 hours, and had everyone at the table and could not get a response from BOA for their final approval....we closed and sent the proceeds to BOA and everyone was on pins and needles for three days wondering what was going to happen.... Don't do this! It all turned out well but I would never do it agian (pretty much circumstances with both seller and buyer dictated this chancy action). I only bring it up because you might have to have a flexable closing date when it gets right down to it. Without all this fun the purchasing process would not be so memorable...ahh, short sales, got to love em. You will get there if you hang in there.

Replies

Paul Antonelli January 8, 2012 at 3:22am

You may find that the second was a HELOC. This does happen a lot and is not a big deal as long as the agent has a good relationship with his/her negotiator. It does suck for you because your rate lock expiring. But from what I've seen this week it may be great news for you because the rates went down to under 4%. So I would suggest to be patient and let the updated approval letters come in.
- M Bhatti > Paul Antonelli January 8, 2012 at 4:05am
  
  UPDATE: Both agent has agreed to credit $1,500 each towards the second trust pay How long does it take for bank to approve HUD after uploading to Equator?
  - Randy G. Thompson > M Bhatti January 8, 2012 at 6:03am
    
    You should have an answer in a couple days...it is very important that the listing agent stay right on top of it. Sometimes it is hard to reconize an approval from equator...meaning they don't come back and say "HUD Approved" but as things happen in equator the listing agent should get notifications on a personal level, from the closer at BOA,.. that there is activity in equator. You had asked if you could contact BOA...they will not work with you as they have no authorization from the seller to speak with you as they do with the listing agent. Another thing that can be difficult is that BOA hires a 3rd party company to conduct the negotiating activity of a short sale and often the listing agent does not know he is not dealing directly with BOA as the third party does not tell you they are not BOA..thus the "Approved subject to approval". When you get everything approved BOA will say to submit a final HUD 72 hours prior to closing for their final, final approval. I just closed one, did the 72 hr hud prior to closing, set the closing and didn't get any response within the 72 hours, and had everyone at the table and could not get a response from BOA for their final approval....we closed and sent the proceeds to BOA and everyone was on pins and needles for three days wondering what was going to happen.... Don't do this! It all turned out well but I would never do it agian (pretty much circumstances with both seller and buyer dictated this chancy action). I only bring it up because you might have to have a flexable closing date when it gets right down to it. Without all this fun the purchasing process would not be so memorable...ahh, short sales, got to love em. You will get there if you hang in there.
Bryant Tutas January 8, 2012 at 1:42am

Going out in the newsletter today
Minna Reid January 2, 2012 at 4:30am

You need approval letters that address both loans. I have done many double BoA short sales, and sometimes they have been addressed through one negotiation and one approval letter, other times it requires two and two different approval letters.

From your description it sounds to me like there were 2 different approval letters involved. If so, you need two current approval letters to close. This is very easy to find out by looking at the approval letter. The loan number will be listed on it. If it addresses both BoA loans, two loan numbers will be listed. If there is only one loan number and you need two approvals, then you need a different approval letter for the second.
- M Bhatti > Minna Reid January 2, 2012 at 5:52am
  
  What's the easiest way to get the second trust approval letter? Can BOA closing agent issue an approval as told by the negotiator?
  - M Bhatti > M Bhatti January 5, 2012 at 2:53pm
    
    I received the 2nd trust approval yesterday, they approved the 2nd trust for $6,000 but first trust approval letter will only $3,000 to second. Per the settlement company there are enough funds to pay off 1st (as listed on the approval letter) and $6,000 to second but to my surprise first trust would not allow that, they want to apply any extra funds towards 1st trust. Both loans belong to BofA, what difference does it make? How do we resolve this issue?
    
    Thanks
    - M Bhatti > M Bhatti January 7, 2012 at 5:35am
      
      UPDATE: Both agent has agreed to credit $1,500 each towards the second trust pay off. Negotiator of 1st loan thinks it will get approved. Has any one experienced with this before?
      
      How long does it take for bank to approve HUD after uploading to Equator?
Wendy Rulnick January 1, 2012 at 6:26am

M - Please have the listing agent contact Bank of America Twitter Help https://twitter.com/#%21/bofa_help They will escalate and get a solution for you.
- M Bhatti > Wendy Rulnick January 1, 2012 at 7:30am
  
  Thanks Wendy. Can I contact them as well?

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