I'd like to hear input from those of you who may be working on a BofA short sale where the owner is current, but maybe has missed a tax payment, if the owner is not a wealthy person, are you getting approvals without the bank asking for a promissory note or a cash contribution to the 1st lien?

Please let me know your experiences.  Don't reply if your client has missed payments.

Thank you

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I'm sure it is possible but I recently tried to put one through on a current seller...DECLINED ( 2 months later ) . Their answer was that he was not in the hole enough based on his financials ( he was only showing a few hundred negative - hardship was a divorce hence reduction in household income - everything that went in painted a perfect picture of the imminent default) . It was an FHA and I took it all the way up to FHA - who backed BofA. He stopped paying...we input the exact same package and what do you know - apparently he is now "broke enough" as the file is moving through.
I just had one rejected last month after waiting around 4 months,where the sellers are current. The sellers were only paying 1/2 the mortgage which is what they could afford and the buyers were paying the other 1/2 just to keep the house out of foreclosure. But I guess that meant nothing to BOA they denied it anyway. So now we are paying nothing and re-submitting since we are in default as of 03/16/2010. Wish me luck and good luck on yours!!!!

Minna Reid said:
I'm sure it is possible but I recently tried to put one through on a current seller...DECLINED ( 2 months later ) . Their answer was that he was not in the hole enough based on his financials ( he was only showing a few hundred negative - hardship was a divorce hence reduction in household income - everything that went in painted a perfect picture of the imminent default) . It was an FHA and I took it all the way up to FHA - who backed BofA. He stopped paying...we input the exact same package and what do you know - apparently he is now "broke enough" as the file is moving through.
I just got one denied today after 5 months and getting to the point where the bank countered with an acceptance of the terms and just a change to the settlement date.

Pretty much the same situation on my end, we showed the seller was earning about 30% less than before and his property taxes had increased, he used up his savings and he was barely able to make his payment and was in eminent danger.

I was told that it was an Investor guideline and the he needed to be at least 30 days delinquent. The seller was trying to do the right thing by continuing to make his payments and not screw the bank over, and it turns out the BOA is now screwing him.... Thanks a lot BOA

Hopefully the buyers will be willing to wait a few more weeks until he is officially delinquent and not walk away. So from now on whenever I have a buyer who is current, I will be straight with them and let them know that as soon as we receive and offer that they need to stop making payments.

Incredible!
Hi Minna,

I have the same issue right now, I just got the sale declined, did you have to start the process over again in Equator?

It looks like the negotiator has closed my file as it does not appear on my list of properties I have on Equator.

Minna Reid said:
I'm sure it is possible but I recently tried to put one through on a current seller...DECLINED ( 2 months later ) . Their answer was that he was not in the hole enough based on his financials ( he was only showing a few hundred negative - hardship was a divorce hence reduction in household income - everything that went in painted a perfect picture of the imminent default) . It was an FHA and I took it all the way up to FHA - who backed BofA. He stopped paying...we input the exact same package and what do you know - apparently he is now "broke enough" as the file is moving through.
Had an unemployed seller who had used all his savings, cashed in his 401k and had family help to keep current on 170K loan to Bank of America, who approved 52K short sale despite him being current. The seller was not obligated to contribute to deficiency or sign promissory note.
Juan - That one is an FHA so it can't go Equator.

But yours - call again...reinitiate...you know the drill....

Juan Reyes said:
I just got one denied today after 5 months and getting to the point where the bank countered with an acceptance of the terms and just a change to the settlement date.

Pretty much the same situation on my end, we showed the seller was earning about 30% less than before and his property taxes had increased, he used up his savings and he was barely able to make his payment and was in eminent danger.

I was told that it was an Investor guideline and the he needed to be at least 30 days delinquent. The seller was trying to do the right thing by continuing to make his payments and not screw the bank over, and it turns out the BOA is now screwing him.... Thanks a lot BOA

Hopefully the buyers will be willing to wait a few more weeks until he is officially delinquent and not walk away. So from now on whenever I have a buyer who is current, I will be straight with them and let them know that as soon as we receive and offer that they need to stop making payments.

Incredible!
Before you go telling your clients to stop making payments and open yourself up to future lawsuits, you should check out www.PaladinLegalCenter.com and at least have each of your clients do a Free Consultation first. That is, if you're in CA, AZ or NV, if not, see if they can refer you to someone in your state.

What happened on one of your files isn't a rule of thumb for all files, especially when it comes to whether or not the borrower absolutely has to be delinquent for the short sale to be approved.

Juan Reyes said:
I just got one denied today after 5 months and getting to the point where the bank countered with an acceptance of the terms and just a change to the settlement date.

Pretty much the same situation on my end, we showed the seller was earning about 30% less than before and his property taxes had increased, he used up his savings and he was barely able to make his payment and was in eminent danger.

I was told that it was an Investor guideline and the he needed to be at least 30 days delinquent. The seller was trying to do the right thing by continuing to make his payments and not screw the bank over, and it turns out the BOA is now screwing him.... Thanks a lot BOA

Hopefully the buyers will be willing to wait a few more weeks until he is officially delinquent and not walk away. So from now on whenever I have a buyer who is current, I will be straight with them and let them know that as soon as we receive and offer that they need to stop making payments.

Incredible!

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