I have a FHA SS right now with BoA, and here is the situation:
-owner is retired with pension and social security for income = about $2800/month
-owner have a scheduled monthly payment to IRS about $1400/month for the next 3 years
-owner was in a loan mod, payment was about $1100/month, she decided to stop going through the loan mod because she does not think she will be able to keep the house and afford it down the road.
-we're trying to help her with a SS, listed and got a very reasonable offer, BoA now is saying that because she dropped out of the loan mod on her own, according to the FHA guidelines, they can't recommend her for a SS.
-she has stop the loan mod for about a year and a half ago and have been trying to work something else out with BoA during that time, and the whole time the owner and her BoA account manager played phone tag as she volunteer full time at a community church from 9am - 5pm, and the BoA account manager would only work from 6am-2:30pm EST, we're on PST so that translate to 3am - 11:30am.
-when we could finally get the negotiator on the phone, she basically told the owner that her only options now is to bring the account current, apply for another loan mod or wait for foreclosure.
-bring the account current... no money... not an option
-even applying for another loan mod, she does not think she can still keep the house and would love to complete a SS before the year end because of the HR3648.
-also, another reason she dropped the loan mod was because she knows after the trail period of 3 months, BoA will make the loan mod permanent but will take the back payments and added as a 2nd lien as one of their condition. There is no way she would want liability like that...
-therefore, her only option left is wait for foreclosure, and she will file for a BK before that happens.
-she is in the process of trying to set up a mediation with BoA and hopefully it will go well and she can work something else out to avoid foreclosure and BK. If not, what else can I do to help my client?
-the way I see it, BoA is forcing my client to be foreclosed on and she will file a BK, which is even more worst on her credit. Is this legal and ethical?
BofA has to go by FHA guidelines. The guidelines are here http://shortsalesuperstars.com/group/fhashortsales
This is not illegal or unethical. Lenders are under no obligation to approve short sales. If borrowers do not make their payments then the lender has the right to foreclosure.
Be sure the seller speaks to a competent attorney before filing BK. BK can be a good thing but filing BK does not necessarily keep the borrower from getting foreclosed on. The lender may still need to foreclose to get their collateral back. So timing is important.
You can escalate:
***Need Help? Try TWITTER HELP:
LOG INTO YOUR TWITTER ACCOUNT and TYPE: @BofA_Help Call YOUR NAME RE: PROPERTY ADDRESS, YOUR TEL NUMBER
or go to [email protected]
For TWITTER Do not place LN# or borrower name in the message. Just a brief: 'Need help with a HAFA short sale" will suffice. Make sure to mention short sale. Also, each file should to be a separate tweet. If you have issues with 4 files then send 4 tweets. They will respond very quickly.
The guideline is for them to first try a loan mod. If they do not have the monthly income, then it will probably be declined. I would just go through the process and eventually they should approve a short sale.
FHA does not like to have real estate in their portfolio....appeal to FHA directly also.
Becky, where do I go for their contact info?
I think the FHA contact info is in Bryant's link
Have them re-apply for a loan-mod. No matter what they say you can apply. I was told "you don't qualify" and applied any how and got accepted for a new program. The key here is to keep fighting at their game. If i didn't get accepted i would have applied for my 4th loan mod. By all means never ever believe what they say even if it's in writing. An attorney defending the foreclosure is huge at this point.
Bottom line we know this is fact, if u don't pay your mortgage you can get foreclosed, period. Everything else outside of this is subject to interpretation, negotiation and is voluntary. Even the banks own in house "criteria" is subjective. Remember they are servicers and the can put all the policies they want in place but not necessarily follow them.
Thank you for all of the feedback, I really appreciate. I will advice my client accordingly, and hopefully the mediation will bring something next week or I will tell her to reapply for the loan mod.