Problems with substituting new buyer at exact same terms
Escalate through Twitter? FNMA? Both?
Bank of America issued an approval letter for their first and second lien right as the buyer walked. We got another buyer to write an offer at the exact same terms. Cash offer from an investor netting the bank the exact same amount. I was told by the negotiator and the closer that they would do a soft decline and the new buyer approval wouldn't take very long. That was over a month ago and the file has gone to a different negotiator with RDC. I get zero response to messages through equator or phone calls. Twice I have been told that I would hear back from a supervisor within 24 hours but have yet to receive a call back. Have tried calling both RDC and BofA short sale dept. Just learned that a new appraisal was ordered. Given the issues with FNMA appraisals coming back inflated, I'm worried this is going to blow the deal up. Don't understand why they're basically starting over when the ONLY thing that changed is the buyer's name.
Any suggestions? Is this standard BofA practice? Hasn't been with other lenders.
Replies to This Discussion
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Permalink Reply by Christina Waymreen on
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Yes, this is the norm with FNMA shorts sales. These are tactic delays. If you go through customer services they will put your file through escalation but now that's pretty much just another way of smoothing ruffled feathers. They still are forced to do what FNMA wants. Their hands are tied. FNMA are non-delegated files. If you tend to breathe the wrong way with a file they are obliged to go back to FNMA and ask for permission. In the end if FNMA find that they can make more money, they will. If your BPO is out of date. Right back to square one. Been there, done that, many times. Sometimes the BPO has not changed and you would be in luck.
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Thanks for the reply. Last week I received an email that FNMA has added a feature where you can register your short sale on homepath so they can "proactively work with" the servicer. Has anyone tried that yet? Does it seem to do any good?
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Yes, we have, around three occasions. One was an attempt to challenge the BPO inflated price. It worked once, twice more it didn't. We lost buyers and home is being foreclosed. Banks would not loan out money with inflated purchase price and low appraisal. Now I hear they are trying to be "realtor friendly" but I haven't used it again. From experience they will not want to hurt the bottom line. If they can get more money, they will. It does not hurt to try, though.
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Permalink Reply by Ana Huffer on
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I have the same problem! I had an approval, the buyer walked after the inspection, 3 days after approval. I was able to get an offer for the same exact terms the only thing that changed was the buyer's name. They made me start all over again and now they're saying the seller no longer qualifies for the HIN/co-op incentive! We could have had this closed before the end of the original approval deadline had they just substituted the buyer. Ridiculous and a waste of everyone's time.
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Permalink Reply by ElizabethWeintraub00697006LyonRE on
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I would say this is fairly common. You're just lucky the negotiator did a soft decline. I've had them promise to do a soft decline and then,oops, sorry, we bad.
As others have pointed out, escalation is just there so they can say there is a place for you to go to escalate. The best you can do is keep everybody else in the transaction calm while you continue to call and press the issue and tweet. Sometimes, escalating to the President's office is helpful.
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