Confused buyer dealing with BOFA, please help!
Replies to This Discussion
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Permalink Reply by ElizabethWeintraub00697006LyonRE on
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In short sale land, December 10th is light years away. Trust your agent. Rely on what your agent and the listing agent tells you.
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Permalink Reply by Beverly Cibulsky on -
I accepted the terms and they verbally approved the sale on October 17th.
Where is the approval letter? I would'nt trust "verbal" bank approvals! Especially if there is no investor approval yet! Sometimes the lender/servicer counter's with term they know the Investor wont approve, but that is only to clean up before going to the investor! Does your REALTOR know who the investor is?
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Permalink Reply by Valerie Pressley on
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What most likely happened with BOA is that the offer the agent submitted was "countered" by BOA with the same terms the agent submitted. This means that the offer is approved to forward to the investor. When you've gotten this far with the bank, they will typically postpone the sheriff sale because they were the ones who scheduled it in the first place. You should receive investor approval shortly and an official short sale approval letter. There is nothing tha says you can't ask the listing agent to verify with BOA that they will postpone the date and let your sale happen.
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Permalink Reply by Lila Lopez on
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Good Morning,
I have worked with Bank of America through the Equator system both as a selling agent and a listing agent. You may wish to ask your realtor to get in contact with the listing agent and ask for a copy of the last update they have from the negotiator at Bank of America. It can be done rather simply by doing a copy and paste so that you can see the written communication the listing agent has received from the bank negotiator. The investor information is never provided, as Bank of America as the servicer handles all of the paperwork involved, and it is dealt with as an internal process. I have found that once I am advised by the negotiator that it is going to the investor for approval, it does in fact come back within about a weeks time. The key here is for the listing agent that is working with the negotiator maintain constant contact and stay on top of any requests made by the negotiator. My experience has been that once the file is sent to the investor for approval, there has rarely been an counteroffer, as the negotiators know the range they need to be in and know how to follow their investors guidelines.
On a separate note, you will want to have your agent speak with the seller's agent and/or attorney that is representing the seller in the foreclosure proceedings. There are two things going on simultaneously when a property is in the process of a foreclosure, the bank is seeking to foreclose through one department and if the seller is looking to sell the home as a short sale, that is handled by a different department. Rarely do the 2 department communicate with each other. No one in the short sale department can get the foreclosure sale cancelled once it is set for auction, that is something that the seller's attorney needs to take care of. Foreclosure sale dates can and do get cancelled, but they have to be done so by the attorney representing the seller. Your agent really needs to get to work on that as well and monitor that aspect of the transaction.
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Permalink Reply by Janis Schade on
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You usually have about 30-45 days to close once a written approval letter is received. Verbal approvals really don't mean much except that they appear to have accepted. So, realistically, they could easily send a letter in November, and still meet the time frame for closing (December 10th). The bank may extend the closing date based on their written approval letter. As far as the foreclosure date, you are probably postponed, if not cancelled. It sounds like everything is about right, timewise. There is usually about a 10 day gap between each communication with BOA.
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Lila Lopez, nice response. Make sure that the listing Agent makes contact with the foreclosure department. The two deparments rarely talk. The Agent needs to confirm that the sale has been postponed. The Agent needs to keep pushing the closing date out, each time he talks to the negoiator. 45 days, 45 days. You can always close early. DO NOT ASSUME that the foreclosure date has been pushed out.
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Thanks Dan, I learned the hard way on my very first short sale that the two departments do not talk to each other, they are two completely departments. It is the responsibility of the listing agent to get this done, but because I also find myself on the other side as the selling agent, I have learned to be vigilant and stay on top of things. Just because it is the resposibility of the listing agent to monitor this, doesn't mean that they do. I have had the misfortune of working with agents that do not even come close to understanding the process or how to proceed on short sales, much to the detriment of buyers, sellers and other agents. Here in Florida we now have a Short Sale addendum that contains a clause whereby the seller grants authorization to their lender to provide status updates on the progress of the short sale. I go one step further and have been requesting that the seller, in transactions where I am the selling agent, include me in their third party authorization letter to the lender(s), so that I can get the status directly.
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Permalink Reply by Paul Francis - Vegas Short Sales on
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Normally with a scenario like this, whether I'm on the buyers side or the sellers side, I'll make sure the buyers loan officer has everything ready to go. I'm under the impression that B of A has the investor's guidelines that the investor will approve so when I get a verbal approval... I make sure that everybody is ready to go the minute the formal written approval is received.
Don't ever assume that B of A is going to automatically extend the foreclosure date especially if it's already been pushed out. As Liz says... Dec. 10th is light years away in short sales land. If everybody is ready to go the minute the formal approval comes across then it can really speed up the process.
Last scenario I had like this was with a VA buyer a couple of months back... B of A gave the listing agent a verbal approval and told us and we had everyone and everything ready to go. By the time we got the formal written approval... we only had 14 days to close. Since it had been extended out three times already, they would not extend the foreclosure date again. Luckily this particular buyer was using my preferred Mortgage broker and we got it done.... all because everything was ready to go the minute we got the approval.
Personally.... I can't think of one time in the past couple of years that when we had a "verbal" approval from B of A that it did not come through so if you were my buyer.... I'd be making sure that everything is ready to go.
Just my thoughts...
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Permalink Reply by Linda Calvert on
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Be very careful. I had a short sale with Bank of America under the same circumstances. They countered giving us just four days to close. Because it was a cash deal with a great title company we said we could close in three days. We were told that the sale had been postponed. It was not. They foreclosed the very day we received the counter. Better yet: title said the sale was not valid because they had not posted the sale properly. Got to love BofA!
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Permalink Reply by Jennifer Randall-Enderson on
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Please have your realtor confirm that the pending foreclosure sale date will, in fact, be post-poned pending short sale review. Have your realtor get confimation from Bank of America's short sale and their foreclosure departments. If there is a foreclosure attorney involved, depending on the state the property is located in, have your realtor get confirmation of the post-ponement as well from the foreclosure attorney/trustee.
Jen Enderson, Realtor, SFR, CDPE
Century 21 All-Pro
Kansas City
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