So we were suppose to finally close this past Friday after 13 long months. 1st was with BOA and 2nd with Regions.
I was informed by my realtor that BOA had approved our offer, Regions had also come to terms as well. We moved forward, did inspections, BOA did appraisal and appraisal came back 5,000 less than asking. Contract was changed to appraised value. Secured financing. I thought all was in place. Then around thursday my brother calls me (Loan officer) and says he still can't get final FHA approval from BOA. Says they won't provide it because they are scheduled to sell the servicing to Nationstar Mortgage on 6/3. I don't understand. BOA told us we need to close by 5/28. Why aren't they letting us close if we have everything in place?
This is the e-mail we got friday from the Title company....
"By now everyone knows what has transpired with Bank of America. Bank of America’s servicing agreement is expiring on 6/3rd., at which time the file will be transferred to Nationstar Mortgage.
I contacted FHA today for assistance with Bank of America. I was requesting that they issue their final approval NOW so that we can close before the servicing expires or extend the servicing agreement and the approval so that we can close. When speaking to the FHA rep, she transferred me to a escalation department. It was to BofA escalation department. I spoke to a Nancy who informed that she could see that I was already escalated to the highest level in BofA. I went back to FHA who has opened a ticket in regards to our issue. Unfortunately , FHA is closed today and Monday. I am suppose to receive a return call on Tuesday."
I sent an e-mail to the CEO of BOA out of desperation and received a call back later that evening. She said our file was with their presidential team and had been escalated to the highest level of BOA, She said they would be working with the sellers and title company on Tuesday to either extend servicing contract or she said they would make sure files were transferred to Nationstar (I told her I had heard nightmare stories about this)
Is there anything else we can do? Do we have any legal recourse? Can anyone help us? I don't want this to go to Nationstar as I have heard nightmares.
Should we ammend contract with sellers for a later date just in case?
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Send registered letter to the negotiator that you are in contract for the negotiated sale/closing of the note and mortgage.
Tell them that if they sell it to a third party that it must be sold As-IS ..and that your contract will remain in force at transfer.
Make sure you send a copy to the negotiator and the management/presidential team as well...
It is not your fault that they accpeted an offer to close out the note for a specific sum and then decided to sell and not give closign instructions....
This is bad faith negotiation and bad faith contract....the fact that they are selling it AFTER making a contractual agreement is proof of bad faith.
If you can have your RE attorney write it....but from a contract law perspective only...it is not real estate.
The letter registered and copies emailed with the tracking number on the copy (PDF file) will probably move this very quickly your direction
Amend the seller clsoing date for sure....give it a month or even three...and have your buyer place another 500 in escrow immeidately ..in the addendum for teh deposit...memorialize the acceptance of terms by the bank.....
Dirk, bad faith contract? the bank is not party to a short sale contract.
Anybody have any input?