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Bank of America Decline for "High negative mitigation"

Posted by Minna Reid on November 29, 2010 at 9:22am in Short Sale Discussions

Please help me understand this decline - as its a new one and makes no sense.

I started a short sale several weeks back with First Franklin. Halfway through the short sale the loan gets sold to Bank of America. We start over in Equator, all is well, its a no brainer approval. Equator counters me, We come to agreement - I start expecting the approval letter.

Instead a few days later I received a decline letter. No explanation on the letter, but negotiator explains "high negative mitigation".

I went up a few chains on the ladder to get someone to explain this and basically, while being rather vague, they explain to me that they stand to gain an additional $60k by foreclosing, so they will not approve the short sale.

Has anyone had this happen? All I can think of is they got some kind of sweetheart deal when they bought the loan protecting them against losses, rendering the short sale futile.

Ideas?

 

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Tags: america, bank, decline, high, mitigation, negative, of, sale, short
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Replies

  • Minna Reid November 29, 2010 at 1:38pm
    Must be. What a massive waste of time for all involved.
    Like they didnt know this BEFORE we went all the way through the entire short sale.
    Can't say I'm surprised though. Another day, another idiotic bank move....
  • Bryant Tutas November 29, 2010 at 12:43pm
    Sounds like a shared loss agreement that we are not privy too. Probably in the agreement when they bought from First Franklin.
  • Minna Reid November 29, 2010 at 10:29am
    About 240k owed. 135k Value. Offer at 135. BPO 136. All the way through the counters with agreement. Just makes no sense
  • Jeff Payne November 29, 2010 at 10:15am
    I know that they have a formula that they use to figure this but for the life of me I can not understand how they think they can net more in foreclosure unless there is a hefty MI payment that they will recieve. How much is the property worth today? What is the mortgage balance?
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