I have a seller that applied for the HAFA program 3 times and he has been declined 3 times. He is now lived in the home for 2 years without making a mortage payment. Bank of America informed me that they will not even consider a short sale without all the documentation that they require. My sellers response was "fine they can foreclose". He now plans on moving out of the property in the next few weeks. Have any of you come across a scenario like this and if so HELP!!!!
Tom - I would cancel the listing.
Send them their cancellation of listing... tell them good luck
Just out of morbid curiousity, what were they asking for that he didn't want to produce?
Everything!! for 6 months they kept asking for updated paystubs, bank statements, etc... then after 2 years and 3 trys my client said enough and I pretty much agree with them. No B of A wants the same items to approve a short sale. no wonder so many people are just walking away.
Tom Stewart, you really have 2 choices, have a fierce conversation and get the seller to look at the big picture or walk away. Seriously, how hard is it to send in bank statements, pay stubs and tax returns. Takes a few minutes of time that can save years of headaches.
The other thing that may be going on is that you have a seller who never intended to sell, playing the system
Put yourself in the owner's shoes. why should you jump through hoops and provide information that they might use against you. The way I overcome any obstacles is to show the seller how they can legally profit from a short sale. I also shield them from any potential liability when they submit their financials.
Profit from a short sale? really? Please tell us how the seller can legally profit from a short sale?
Hey he got 2 years of living free just for sending in his bank statements, not a bad trade off lol - who is the investor? They must not be interested in foreclosing and having property in their portfolio - why would he move out when he can live for free? Seems if he is ready to be foreclosed on he might as well take advantage of living for free until they kick him out lol!
I believe that B of A has a master plan and we are not privy to it. If they do NOT want to get rid of a note..they do NOT..at least until they are good and ready. Maybe the nephew of one of the CEO's wants that home? Who knows..
Why is he moving? At least tell him to stay until they knock on his door and hey 2 years free? Good for him! While B of A screws around, he saved his money.
I have had clients frustrated by this before, these days, I let them know up front that these documents will be requested over and over again.
When we initially apply, they request financials,
when HAFA get's reviewed, they request financials
when the processor comes back from getting coffee, they request financials
I've been considering just asking me to just keep faxing me their paystubs and bank statements as they come in, that way it gets to be automatic. I also minimize the client's work by pre-filling the financial forms, along with a statement for them to review for accuracy, so all they have to do is read and sign.
Jim good post! It is about setting expectations upfront and communicating throughout the process. I too prefill as much as I can to make it easy on them. The seller always needs to be reminded that this is a process and not always a smooth process but in the end, they may be able to walk away from this without long term damage to their credit or finances... BIG PICTURE
Amen Jeff:) Just another reason to prepare the seller to try and emotionally divorce themselves from the process and look to the future of being able to put all this behind them....