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BofA FHA Short Sale Help

Posted by Jesse S. on November 29, 2011 at 9:08am in Short Sale Discussions

Full disclosure:  I am the buyer in this situation.

I have been in contract for a BofA FHA SS since late August and I have yet to hear approval/anything substantial from the bank.  I realize as the buyer I have zero power (is it possible to have a negative number of power, as it feels as though that's what I have?) in this situation, nor can I contact the bank, HUD, etc. regarding the sale.  I do have a question or two that I can hopefully get specific, pointed answers for.  Here goes.

 

1) The listing agent (as well as my agent and myself) have heard/read that negligence on the bank/negotiators side can sometimes be "corrected" by contacting HUD and explaining the situation, which causes them to contact the bank.  The problem is none of us could find a way to contact HUD (the only number we found the person from HUD simply told us to contact BofA, which we know doesn't work very well).  The sale is taking place in Minneapolis, MN.  Is there any number(s) the Listing Agent can call for HUD to help aid this process along?

2) We were recently assigned a new negotiator with BofA (we don't know why...the other one never contacted the LA or returned emails or calls).  Is there anything the LA can do to "expedite" the process this time around?

3) I personally tried contacting the @BofA_Help Twitter account, to which someone actually replied.  I disclosed I was the buyer, and that I realize they can't tell me anything, but I asked if they would contact the LA for more information.  They said the only way they can do that is if the LA contacted them via Twitter such as I did.  I expected this.  I forwarded the information to my agent, who then forwarded it to the LA, who then responded by saying essentially that she was not going to try that, even though I actually did get a real-live human on the phone.  How should I deal with this?

Sorry for the barrage of questions, I'm just frustrated.  We all are, actually.  I just want to make sure everyone's doing everything they can to make this happen, as no one wins if it doesn't.

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Replies

  • Tamara Dorris December 5, 2011 at 4:39am

    I have had a few success in getting files escalated via twitter.

    At the risk of sounding dumb, can someone please explain to me why there is such a big difference in FHA short sales vs conventional? Does it have to do with investors? And why doesn't Equator handle them?


    Thanks!
    Tamara

  • Jim West December 4, 2011 at 4:28am

    Jesse, you can try this website www.ots.treas.gov. I am sure the seller will have to file the complaint on this site, since it is their loan, but at least you can pass it along to the LA and see if they won't help support the activity. Also the seller can try to issue a QWR to the bank. Especially B of A, who was caught up in the Robo-signing suit. Sometimes issuing a QWR freaks out the banks enough that the managers get involved and push the file forward. The seller is the only one who can issue a QWR. Good luck with your pursuit. 

  • Nathan Miller December 4, 2011 at 4:06am

    877-622-8525 - The listing agent may create a ticket with HUD for assistance with the difficult servicer.

    The better advice would be... Go buy a property that doesn't involve dealing with Bank Of America.

  • Jennifer December 3, 2011 at 11:56am
    Jesse- I thought of something else I tried. But please keep in mind I'm a buyer like yourself so I dont have experience with short sales other than my own. But I forgot to mention that my dear, old Dad, who seems more excited about my first home than anyone, contacted our local Congressman to file a complaint about the slow short sale process. It took about 2 weeks, but his office did return our call with a contact for our area and said they could help put pressure on the bank (?). But they also said the sellers would have to call and file a complaint. I passed the information on to the LA but I don't know if the sellers ever tried to call. I was surprised to even get a response from their office, so maybe you could get a contact for your area the same way.

    Quick update on mine - found out te appraisal was finally done on Tuesday and I should hear something next week. SURE I will. I've given up on having any expectations!
  • Keji Ogunleye December 3, 2011 at 7:47am

    First I'm not sure why you want to contact HUD. Is this an FHA loan? Also if this short sale is being handled by one of BoA out-source company(UTLS or others) then they are terribly slow and do not work at the same pace as BoA. BoA as greatly improved their process and the LA should be able to escalate via equator. Also using twitter really does work, but only the LA can do all these.

    • Jesse S. > Keji Ogunleye December 3, 2011 at 9:04am

      Yes, it's an FHA loan (it's in the title of this thread), and since it is, it cannot be escalated through Equator.  This is also why I'm looking for some HUD contact information to pass along to the LA.

      I will have to sit down and talk with my Realtor about getting her to use the Twitter contact method.  I know it works.  There's proof all over the Internet.

      • Katie Mitchell > Jesse S. December 4, 2011 at 4:09am

        Jesse,

        BOA is usually very quick with dealing with FHA short sales once the ATP has been sent to the listing agent.  If your contract meets the required terms of the ATP, then most BOA will be fully approved and can close within 30 days.  However, if it does not meet the terms on the ATP it must go to HUD for approval which can take longer.  Asking for closing costs above the 1% sales price typically takes BOA an extra 20-30 days for approval since they are required to get a variance by HUD for this contract even if it meets the required net to the bank.

        If you are still having problems with getting the final approval letter (and your contract does meet all the required terms of the ATP), have the listing agent contact HUD.  She will need to fax an ATR to 918-236-3274.  Let them process this for 24-48 hours, then she will need to call 877-622-8525.  Please be sure that the FHA Case # is listed on the ATR and mentioned when calling.  They will then assign you a HUD specialist who will contact BOA to see what the issues are on the file and help speed things up if possible.

        Good luck!

        • Jesse S. > Katie Mitchell December 4, 2011 at 10:49am

          Thanks a ton.  This is is potentially very useful information.  I'll be contacting my Agent very shortly and passing this along.

          Thanks!

        • Jeffrey Burnham > Katie Mitchell December 4, 2011 at 6:42am

          Your situation is not uncommon. B of A is herendous to work with. I have one that is now going on 2 years... so far my record is 26 months with B of A.

          SO..... you need to be prepared to wait.  I try as much as possible to get myshort sales PRE-APPROVED, like using the HAFA program when possible. My first question to the LISTING agent (YOUR agent should contact the LISTING agent) is: HAVE THEY/SELLER SUBMITTED ALL REQUIRED DOCUMENTATION? Second question: has a BPO (Broker's Price Opinion) been done to establish whether your offer is in line with the actual value of the house? Third question: Has all this been submitted to the actual INVESTOR on the Seller's loan?

          B of A often bobbles the paperwork... waits months to handle things, plays "musical negotiaotors" (switching them multiple times) and then requests UPDATED info because what they have is months old! I have my SELLERS in short sales update me monthly with new paystubs/ bank statements to avoid this which I upload into B of A's equator system (their computer system for handling short sales.)

          UNLESS you are either prepared to wait... 8-9 months is not unusual with B of A, I might suggest a "PLAN B" (another home.) YOu should look to YOUR agent to fully explain the short sale process and they/you should INSIST on updates from the listing agent every 10 days. ( I ALWAYS do that with the Buyer's agent/ my Buyers to manage expectations.) Biggest thing to understand is that YOU are not going to get any direct answers from B of A due to privacy laws. Same goes for YOUR agent. You should, however, use your agent to always keep you abreast and hold the listing agent to task if it seems they're not doing the job.

          Remember, not ALL agents know how to do short sales. Just like not all doctors can do a heart transplant. Look to YOUR agent for guidance. You have to be confident in THEM (your agent.)

          Good luck and try to not stress too much over it. The more anxious you are, the slower B of A will move.... that's Mr. Murphy hard at work!

          Oh yeah, one more thing....unless you feel (and can PROVE) that you've been discriminated against....HUD has absolutely NOTHING to do with B of A's handling of a short sale!!! They have NO jurisdication over things... and ultimately the short sale CAN be declined even if your offer makes sense financially. The bank/ investor is under NO OBLIGATION to accept anything less than 100% what is due to them!

           

           

           

           

           

          • Katie Mitchell > Jeffrey Burnham December 4, 2011 at 7:08am

            Jeffrey,

            It seems you are unfamiliar with FHA Short Sales and their procedures--educate yourself, it will make dealing with FHA Short Sales with any bank easier.

            Like Nathan says and I mentioned in my previous remarks HUD has everything to do with a FHA short sale being approved.  I have attached HUD's Preforeclosure Sales Program Guidelines.  You can find more information on www.HUD.gov.

            HUD PFS Program Info.pdf

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