Guess what Bank of America does now to scew up short sales? - Loan Modification Forum

amiesheikh · 09-04-2009, 08:59 AM

I have a current short sale with Bank of America. When we listed the proprty in fall of 2008 the first and second trust were with bank of america. Seller owes $600K on the first and $110K on the second. We got our first offer in January for $470K. Bank of America ordered their appraisal in April. Appraisal came back at $525K.

We lost the first offer in June b/c BOA and the buyer couldn't agree on price. While this "negotiation" was going on, Bank of America decided to charge off the second trust and collect on their Mortgage Insurance. How conveinient. They had an appraisal done the month before, saw they wouldn't even get enough to cover the first let alone the second and thought "Hey lets cash in our insurance policy and get $111K!".

Well fast forward to today. We have a second offer at $520K (which will most likely not appraise for that when the buyer does their appraisal...BOA did another appraisal last month that came in at $500K). BOA is sticking to their guns about their BS policy of only giving $3K to the second (with manager approval). Problem is the MI company wants 10% of what they paid BOA, $11K. Their reasoning is "hey you morons at BOA we just paid you $111K 4 months ago, give us $11K back!". The MI company refuses to budge and BOA is refusing.

I have it escalated right now to get anything extra I can out of BOA. I agreed to also give up $2K of my commission. So the bastards at BOA only have to give $6K more.

Also we have until the end of the day today to produce the approvals from both first and second or the buyers will walk. So it seems BOA will screw up yet another short sale with their greediness.

Something has to be done to prevent these banks from cashing in their MI policies while a short sale is in negotiation.

Evan Bedard · 09-04-2009, 09:47 AM

Hi amiesheik,

You may want to consult with a real estate attorney that has experience with the short sale process...

snapple candy · 09-05-2009, 05:58 AM

Yeah, they only have one thing they are interested in and its not the homeowner or the agents. Not surprised they are collecting MI as quickly as possible, In general i dont think many have actually achieved successful short sales. I was watching Bill Maeher last night and I always get a kick out of his labels he puts on banks....skank of america. shtty bank.

amiesheikh · 09-05-2009, 08:03 AM

Quote:

Originally Posted by snapple candy

Yeah, they only have one thing they are interested in and its not the homeowner or the agents. Not surprised they are collecting MI as quickly as possible, In general i dont think many have actually achieved successful short sales. I was watching Bill Maeher last night and I always get a kick out of his labels he puts on banks....skank of america. shtty bank.

LOL! I've been caling them skank of america for about 10 years now. ever since they laid off my husband for breaking their commission plan and making too much money as a personal banker.

09-04-2009, 08:59 AM	#1 (permalink)
amiesheikh Member Join Date: Jul 2009 Location: Northern VA Posts: 22 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Guess what Bank of America does now to scew up short sales? I have a current short sale with Bank of America. When we listed the proprty in fall of 2008 the first and second trust were with bank of america. Seller owes $600K on the first and $110K on the second. We got our first offer in January for $470K. Bank of America ordered their appraisal in April. Appraisal came back at $525K. We lost the first offer in June b/c BOA and the buyer couldn't agree on price. While this "negotiation" was going on, Bank of America decided to charge off the second trust and collect on their Mortgage Insurance. How conveinient. They had an appraisal done the month before, saw they wouldn't even get enough to cover the first let alone the second and thought "Hey lets cash in our insurance policy and get $111K!". Well fast forward to today. We have a second offer at $520K (which will most likely not appraise for that when the buyer does their appraisal...BOA did another appraisal last month that came in at $500K). BOA is sticking to their guns about their BS policy of only giving $3K to the second (with manager approval). Problem is the MI company wants 10% of what they paid BOA, $11K. Their reasoning is "hey you morons at BOA we just paid you $111K 4 months ago, give us $11K back!". The MI company refuses to budge and BOA is refusing. I have it escalated right now to get anything extra I can out of BOA. I agreed to also give up $2K of my commission. So the bastards at BOA only have to give $6K more. Also we have until the end of the day today to produce the approvals from both first and second or the buyers will walk. So it seems BOA will screw up yet another short sale with their greediness. Something has to be done to prevent these banks from cashing in their MI policies while a short sale is in negotiation.

09-04-2009, 09:47 AM	#2 (permalink)
Evan Bedard LoanSafe.org Homeowner Guide Join Date: Aug 2007 Location: Southern California Posts: 2,168 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Guess what Bank of America does now to scew up short sales? Hi amiesheik, You may want to consult with a real estate attorney that has experience with the short sale process... __________________ Keep Fighting! Evan Bedard LoanSafe.org Support Team Please donate via paypal to LoanSafe.org to help keep this forum going The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

09-05-2009, 05:58 AM	#3 (permalink)
snapple candy Senior Member Join Date: Feb 2009 Posts: 1,300 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Guess what Bank of America does now to scew up short sales? Yeah, they only have one thing they are interested in and its not the homeowner or the agents. Not surprised they are collecting MI as quickly as possible, In general i dont think many have actually achieved successful short sales. I was watching Bill Maeher last night and I always get a kick out of his labels he puts on banks....skank of america. shtty bank.

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