Bank of America is sending me in circles!
Hello Superstars,
I have an unemployed client with and FHA loan. She is going through the loan modification process to satisfy part of the cascade, so she can request a short sale.
Bank of America is requiring proof that she is paying on her liens or that they are waived. Which the utility companies are unwilling to issue either as the client has nothing to pay them.
I have escalated within BofA and even via twitter. I keep getting the same answer. That they can't continue with out those documents. I escalated to HUD and the national servicing center, who referred me back to Bank of America HUD escalation, who is referring me back to the CRM.
This is so illogical! It seems like there should be someone I can talk to who can help and not just pass the buck to the next person.
Any input or help is appreciated. Thanks!
Replies to This Discussion
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Permalink Reply by Bryant Tutas on
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Are you stating that there are utility liens on the property? If there are then these too have to be negotiated as part of a short sale. FHA will allow $2,500 total. This includes the seller's $1,000 incentive. All lien holders have to send you a written agreement before FHA will approve the short sale.
Not sure if their modification has the same requirements as I don't handle loan mods. My guess is they want the payments current on these utilities since she is asking FHA to modify her loan. They won't modify her loan if she is not paying her other bills.
She should consider just opting out and going straight to short sale. My FHA sellers have never been forced into a loan mod. They just called in and opted out. May make sense for her to do that now.
If there isn't a lien then I'm not sure where the issues lies.
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Permalink Reply by Trong Dang on
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There are 2 utility liens on the property. Sorry I was not clear about that in the post.
We had tried having her opting out of the loan mod process and were told different things by BofA and ultimately told that she would have to go through it by a supervisor. Maybe it is time to try that angle again and escalate higher. Because it seemed silly to have an unemployed person go through loan modification anyway.
Thank you for input Bryant.
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Permalink Reply by TOP END Properties on
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My FHA clients where forced to stay in loan mod status under FHA. I had it pushed into the short sale department and they had to send it back to loan mod. They were only able to get out by securing a job out of state.
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I am glad your clients were able to find employment and meet exemption requirements.
I hope we don't get stuck like that though. I have an appointment with the CRM tomorrow. I hope that I will be able to help find some soloution for this homeowner beside foreclosure.
Thank you for your reply.
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I just spoke with the CRM. I keep getting the same "too bad, so sad." Its not their fault she can't borrow money to pay her lien.
Does anyone know how I can reliably determine if she needs to go through the loan modification or can opt out? From Bank of America I had one answer from the short sale department and another from the CRM.
I really appreciate any help on this.
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Update: Bank of America rep contacted us after seeing this post. We got back in touch through Twitter, and the file is now being escalated. Not sure what the outcome of that will be, but I am very happy to have some forward motion.
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Permalink Reply by Evelyn Santiago on
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Bank of America is obviously monitoring the internet. The FHA short sale process is very picky and I had an unemployed homeowner who moved out of the country where we had their attorney do letters to certify their unemployment, lack of checking account, etc.
The only way you can get those liens removed during the short sale is to get actual payoff letters from each lien holder stating that for x amount they will release the lien on the property and then include them in your preliminary hud-1 when you get to that phase. Start working with the utility companies now and escalate to their Office of the President.
You have to make a lot of noise to get some of these short sale issues handled and escalated since the negotiators have little power and only follow a check list.
Tweet, blog, file complaints with National Servicing Center, blog, file complaints with Consumer Financial Protection Board, blog, file complaints with Office of the Currency....squeeky wheel eventually gets oiled.
Good luck!
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