Just received this from BOA: Please be aware, the lien on this property is scheduled for sale to a new Investor (non Bank of America) on 1/31/2013. This Sale will need to be closed by 1/29/2013 as we need to review and approve the Closing Docs, and require enough time to stop the Service Release. If this Sale does not close by 1/29/2013 you will need to obtain a new Sale Approval from the new Lien Holder.
We do have short sale approval but there is no way we will be able to close by that date. Spoke to the closing officer and his manager but no luck in getting this cancelled. I have already reached out in Twitter but they could not provide any assistance regarding this. Reached out to the negotiator also but no response as of yet. Any thoughts on who else can I escalate this file to?
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Welcome to the world of short sales in 2012 and 2013. I've had many with 1 servicer, now sold to another. As soon as I found out who the new servicer was, I contacted them, sent in a package so they had it on file...but realize that the NEW servicer cannot LEGALLY do anything UNTIL they actually ARE the servicer...so u have to wait til the date that they are legally acknowledged as the servicer AND the new servicer now uses THEIR new LOAN #. Once this is done, since they already have the package and you've been communicating with them..the approval goes fast. I had one go from Citi to Carrington Mtg...and 3 days after Carrington took over, since I sent them the package as soon as I found out they were going to be the servicer and communicated with them every step of the way...on the 3rd day....they APPROVED the short sale and we closed in less than 30. So lots of times..this actually works out better...hope this works for you.
I had the same thing happen to me in October. We were told we would have short sale approval shortly. Then we were told that the loan was being sold to another investor and it wouldn't be able to happen. So, wait to find out who the new loan was with. I did and then had to get the new loan number resubmit everything. Three weeks out I couldn't get through on the phone system. They didn't recognize the loan number or seller's social. Finally found out that the loan was sent back to BOA and to start all over with them. I did and I got the approval to close last week. I have told the buyer's agent to get this closed ASAP before the date on the approval letter in case they sell it again.
Sorry, but you have no control over this.
Joan Psarros
I've had to deal with this twice in the past couple months as most short sale agents have. I fought them both and kept them with BOA. In all honesty the first one I gave up on as after I threw a fit I was told there was nothing I could do but they would keep trying. I was headed on vacation in Europe so just figured that I would deal with it when I got back in a week and a half. I got back and called and they said, "we didn't end up releasing it."
The second one I was much more hands on knowing that they can keep them. I had the best closing team dealing with it and escalated to the very top. The manager basically told me that it was out of his hands but everyday he can upload a request for it to be excluded from the service release with a valid reason. I called everyday to see what happened and he kept getting "no's" but about 3 days before it was released he got a notice saying that it was excluded.
Thankfully I got him on my side instead of getting mad as it wasn't his decision and I know he really went to bat for me. I'd encourage you as other agents have said to have the buyer prepare for closing early if possible but never stop fighting the release. The closers at BOA seemed to appreciate our effort to close on time and really got on my side which I think is ultimately what saved this deal!
Great advice... ultimately, underneath all the policy and procedure is a real person who chooses to do you a favor or not. Make them you Ally.
I was told they aren't supposed to do a service release on a short sale that is approved, and if it happens by accident, you can escalate to keep it in-house. All of mine that were yanked were not yet approved.
Elizabeth that is not correct many loans are service released after approval and the new servicer honors the terms of the previous servicer
Howard,
We are currently dealing with the same situation and the best of luck to both of us. Look's like BofA is switching them over to Specialized Loan Servicing and we are chasing for information with the borrower on documentation provided per the servicing agreement. Is the second: a purchase money or HELOC (pulled out to improve the home)? It' important to keep that in mind in order to make sure your client wont be liable for a deficiency.. If it's a purchase money loan- it's considered a non-recourse loan but if it was equity money pulled out (the majority of these loans are recourse loans)
Just let it go to new servicing company... likely greentree, everhome or one of many others. Update your financials from client have it all ready and submit same day as contact is made. These other companies are like charged off ones where they have the bottom line # for you. If you have everything up to date and properly executed approval could be a week or two away.
BofA customer service will release the name of new servicing company. If no luck try the seller's mail...
The key is have it ALL ready.
is it fannie mae backed? try them.
Get in touch with the new servicer escalate through them.
A second lien holder will not foreclose unless the foreclosure sale will bring in enough funds to pay the first entirely and leave them enough to pay the fees of the foreclosure process plus profit.
Ugh....I had a BOA approval that was sold to OCWEN a few months back and had to begin the process over again...Sorry about that....
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