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america bank bank of america Bank owned bob lachance bofa chris bowes debt negotiating foreclosure auction foreclosure class foreclosure course foreclosure mortgage foreclosure property foreclosure training foreclosures investing in real estate loss mitigation patrick precourt Preforeclosure Real Estate real estate foreclosure investing real estate investing real estate investing beginner real estate investment real estate investors real estate short sales REO short sale mortgage short sale training Short Sales
This week’s Preforeclosure Daily Grind is about the latest shenanigans that Bank of America’s short sale department pulled. Their Equator System has been the right move for their over worked loss mitigators but their practices haven’t! Listen in as we uncover what kind of bull$hit they pulled and one of their negotiation tactics. Also covered on this weeks Daily Grind is the what you need to have your homeowner look for, in the mail, prior to doing a short sale with HSBC that might just make both of your days, super charged new version of our ManageMyShortSale.com real estate management tool and much more. Visit www.PreforeclosureDailyGrind.com for more real estate videos from Bob Lachance.
Bob,Chris,
BOA comment, Been working a Short with C.W./BOA since 8/5/09. They requested I submit to them via Equator in February/10. Resubmitted in Equator – BPO completed on 3/2/10, our offer was 48,000, they finally countered on 3/19/10(on a Friday)at 57,000 and requested a counter. They did not specify at timeline so I contacted the buyer on Monday and we were awaiting final numbers from the title company so that we could counter – they cancelled the short sale on 3/22/10, the following Monday- the first day we received the counter. I called to talk with the negotiator and he made all kinds of excuses but said I had to resubmit the SS back into Equator with new offer. STAY TUNED FOR THE FIREWORKS!! Glenn in St. Louis
A couple things on BofA and Equator.
1. If this happens and you have the back-up info, the very best place to escalate is the Office of the President for the mortgage company. It will make things happen.
2. BofA has signed an exclusive agreement with ReMax and if you are a Realtor and not registered in Equator by April 1, they won’t accept listings from you for short sales.
Does this mean all Realtors or just Remax Realtors?
Bank of America.
I have been turning down these short sales in Fort Lauderdale because everyone talks about how they are a nightmare and you can not get around the clause that says you can not resell the property for 30 days.
Is there a way around this or should I continue to avoid B of A shortslaes for Double closings.
Thanks!
Chris, congratulations on being in the final four bands. Wish you well. Something else I ran across this week with IndyMac. All in all I like IndyMac. They have been good on approval times, but one thing they are getting hard on is the amount of time before a sale date that a SS packet has to be in their system before they will consider postponing a sale. The deadline is 2 weeks where most other lenders can go all the way down to 5 days and sometimes less.
Hello Chris and Bob! I’ve been working on shortsale with BOA for about four months. I have requested BPO(expedited) 3 times and twice they told me that they couldn’t get in touch with anyone to get the door to the property open. The funny thing is that I am the person of contact and no one has called me because i keep my cell with me at ALL TIMES. Now jus whating to c if the third attempt is going to be the Charm! I will keep everyone posted.
Thanks,
Tony
We were working on a file with these clowns and were told that 140k was the number. Even though we had a very detailed interior BPO done by an agent which came in at 135k. So we thought, ah what the heck. When our 140k offer was submitted they came back at 145k. The mitigator told us it was the investor. So we sent in our offer of 145k. We keep calling and e-mailing to see where our approval was. All of this is going down to only a few days before the foreclosure sale. The day before the sale we sent in an offer of 150k just to save the homeowner from foreclosure, not to make any money. 5k more than they wanted and not apeep from them. The exact same house on the same street sold for 142k. Instead of accepting the more than reasonable number they took the house back. I’m trying to talk my partners in to never taking a BOA property again. These guys are crimminals….
Bob, you mentioned OCC as a entity to contact if they try this crap. What is OCC and do you have a contact email, phone, or address. Thanks.
PS Have you heard anything about an exclusive agreement between Remax and BofA?
Oh, I have so many BOA stories to tell…
But I will not because I am trying to focus on the positive this week (after a ss blowup at the title company that I just found out is still not really dead).
You have got to keep on plugging away at BOA gang. We can not give up working with them and pushing back on their ridiculous “processes” because there are too may people out there that really need our help.
Just keep trying, we will make progress and a difference!
Sharon
PS Sorry Rich. I had a bogus week so far too. I may use your ‘bait and switch’ on my frustrating Aurora/USBank deal!!!
Current BOA woes:
1) Negotiator assigned to FHA short sale will not re-open because he said the ATP has expired. I am currently trying to research FHA short sale guidelines to see if they are playing by the rules. I cant believe that FHA would not entertain a short sale because the home owner tried unsuccessfully to short sale a year ago.
2) Had an accepted payoff letter that took ~ 7 months to get and the buyer walked. I submitted the backup offer with same net to BOA and they stated that all new offers had to go through equator… back to square one.
3) BOA is in second position. Offer is over 10% of the balance but it has been rejected 3 times without a single reason as to why. 1st has already said they will not postpone the sale date again.
I have made the business decision not to take on any more BOA deals. These people are worse than the government.
On a side note, good luck with your battle of the bands Chris!
Chris, Way to go with your band! Can anyone tell me what OCC stands for? I have also had some success by contacting the BofA office of president when I just couldn’t get any response on a file.
We were told by BofA that they have to counter the buyer “twice”. I thought that was odd since the buyer agreeded to the offer. We’ll see when we hear back. So that goes along with what you stated in the video.
OCC = Office of the Comptroller of Currency I would assume. It’s a federal agency that deals with banks and creditors, and consumers have recourse through it when banks or creditors do things that are illegal or unethical.
dan, Thanks for the answer about OCC!!
Getting paid through seller concessions seems to be getting tougher and tougher. With the new HUD changes there is no room for short sale specialists to be paid through a seller concession, doc prep, transaction fee, etc. on any FHA buyer closings. We are told that Fannie and Freddie and conventional will be adopting these new guidelines come mid-July. One mortgage company receommended that we for a joint venture partnership with them but we would have to use them on our deals (and of course it’s the buyer’s choice on which mortgage company to use. The jv would be legal and HUD regulated. Does anyone have any suggestions on what to do with these deals with FHA buyers?
This came in from my buddy Rich Steffen!!!
“Have a BOA deal where we sent in an offer for $190K, got a counter from BOA at $190K with minor changes and we accepted. We have numerous e-mails saying they would have the written acceptance to us and the deal was approved. Two months later we get a counter for $235K. Had a conversation with a contact we have at BOA and the term “approved” does not mean what it used to mean. Approved means it is worth, according to the entry level idiot (aka the Negotiator) submitting to anyone else that has the right to chime in on the validity of the offer like PMI or the Investor. WTF is that? Accepting a counter offer from BOA on Equator appears to be merely a step in the negotiation process. Are you seeing this at all?”
–
Rich Steffen
The longest way around the Earth?
“EQUATOR”
Bob and Chris
If you have any insight on HAFA and Bank of america’s equator on how they intergrate it would be helpful. I have heard a rumor
that HAFA net would be 78% of market value. I have also heard fannie/freddie coming out with their own version of HAFA. Any insights to this?
JB
I think it is high time that all investors and agents mount a campaign with congressmen/women and other legislators about the stinky practices of One West and B of A. Something is truly “rotten in the state of Denmark” concerning how B of A is going about their short sales, and the fact is WE as taxpayers have a huge stake in these banks – so how is it that they are allowed to get away with 1)not observing the banking laws of $7 in deposits for every $1 in bad assets; turning down legitimate short sale offers, even from retail buyers, and having greater losses from holding/foreclosing/reselling as REOs; “double dipping” with Fannie/Freddie insurance, PMI, AND short sale or REO proceeds; and flaunting the HAFA, HAMP et al gov’t programs? I would LOVE to see the formation of an RTC-style entity that would plow through these properties, and that I think would stabilize the market faster than anything.