We have a Fannie file with Bank of America as the first mortgage and Chase [equity line of credit] as the second. Bank of America says that they will issue us an approval letter, giving the second $6000, as soon as they get the approval in writing from the second. The second says that they are happy with getting $6000 from the first, but won't write an approval letter until they get an approval letter in writing from the first. We have tried to go upstairs, but it seems that we are in a spitting contest for now going on three weeks. We have told the second mortgage and sent them Fannie Mae guidelines. They essentially say too bad. Any suggestions? Thanks in advance
Sean Gunning
**********************************
like buttons
Replies
I want to thank everyone for their responses. We have gone up the ladder, I have even gotten my congressional office involved and received calls back from higher ups at Bank of America. I might have gotten a good call on Friday that supposed to try and resolve something early this week. I think I will change my third-party organization or add a third-party authorization as Thom suggested. It may not help in the future, but it can't hurt
Sean
I've been through this once before and it changed how I submit the 3rd party authorization after that one. Now, my 3rd party auth states all lenders are given permission to speak with each other. I would suggest you send a new Authorization signed by the borrower that states BofA and Chase are allowed to Receive and Convey information with each other regarding Loan # XXXX and Loan # YYYY for the purposes of negotiating a short sale settlement. Once you've sent it to both servicers, get them both on the phone with you, record the call, and see if you can't work it out on the phone.
The Brainiacs at work here, right? You would think they'd want to get these properties off the books and closed, but alas...good luck. FNMAE has been difficult in the past on several notes for me. Their numbers were off the charts, the properties came back up as REO's and the price on the REO was what my offers were on the shorts. I think it's often luck of the draw with your negotiators and good advice here on pushing them.
It depends on the person handlign the file. I've had the 2nd lien holder demanding the approval letter from the 1st but BOA has never given me any trouble as the 1st. You could reach out to Chase Executive office. The fax number is (281) 915-0984 - it worked for me but not sure if they have changed the number since it's been 2-3 years when I had to escalate it to the top with Chase.
I have seen this type of thing overcome with a short sale "pre-approval" letter. Basically ask Chase/BofA to write a letter/email that states they can only submit for approval if the other approval letter is received. Then go to the other with that letter and escalate. It shows intent to release for $6000.
Like I said, I have seen it work before, but many lenders are not allowing their reps to even write emails anymore. If you press the issue with the lenders, they may agree to accept a conditional short sale approval. Ideas are cheap...
We have gone upstairs on this, and as a matter of fact, we got our congressman's office involved two weeks ago. We are still at Bank of America says Chase first or we won't play, Chase says the opposite.
Sean,
Have you reached out to OOP with the 1st and the 2nd? Have you spoken to any supervisors? I don't see why this couldn't get resolved fairly quickly as typically we don't see this issue with BOA.
Brett@ishortsalenow.com
www.ishortsalenow.com
310-564-6389