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Monique Carrabba - The Carrabba Group's Blog

By Monique & Joe Carrabba | Agent in Los Angeles, CA

Cooperative Short Sale Blunders

If you have a pulse and you are active in the short sale game, you have undoubtedly heard about Bank of America's Cooperative Short Sale Program.  It is hailed as a HAFA-like short sale program without the mucky guidelines of HAFA (like occupancy status?). 

An ex-top B of A negotiator, Elena Celestine, who is now their circuit speaker, talked about this program at an event I attended in Los Angeles last week.  She was a gifted speaker, and fun to watch in action.  She scolded agents lightly from time to time for the goofy things we do, and even told the occasional "homeowner" joke.  But one thing was apparent.  She was out of touch.  She said that B of A's Coop program was basically HAFA without the occupancy restrictions.   One problem, HAFA  no longer had the same occupancy restrictions since SD 10-18 came out earlier this year.  Also, she said the Coop program was identical to HAFA in all other ways.  Uhhh, nope.  It does not promise the $6,000 to the junior liens, it does not "always" promise full satisfaction of the debt, and it is vaguely defined in several other areas.  It is an investor-driven program with lots of potential.  But, it is not really like HAFA except for the fact that the program does offer pre-approved listing prices when B of A can get in contact with the borrower early on.

That brings us to my little tale.  I was referred to a nice lady (and her not so nice soon to be ex-husband) to discuss the option of a short sale.  She lived in a beautiful Riverside, CA 3,000 sq. ft. home on an acre of land with a beautiful infinity salt water pool with a million dollar view.  She has a first with Bank of America for $550k, a second with Green Tree (was B of A HELOC) for $225K, and a third with Key Bank which is a quasi-construction loan for $55K.  The property is worth about $500k today.  Not a pretty deal to say the least.  But there was a bright side!

The first with B of A was initiated by B of A as a Coop short sale.  I even got a call from Christine Gonzalez from the B of A Simi Valley office to prove it.  She told me that I would need to do no negotiating for my client as the Realtor.  Wow!  You mean you guys will deal with the NASTY Green Tree for me?  You know they will demand a minimum of 5% of the purchase price on all charged off debt.  Is B of A willing to do that?  Her answer..."we will allow $3,000".  How about the construction loan third?  "We may not allow them to get anything."  Christine, will you be doing the negotiating on this file?  "No, John Bustos who sits next to me will".  Oh, so he's who I should be talking to...

Bottom line folks, this is a mess.  She is a low-tiered set up person who makes fanciful promises to the borrower to encourage her to initiate the short sale so she (Christine) can get a pat on the back and move on to the next borrower.  Another out-of-toucher.

I just took the listing last night, sign goes up tomorrow, and it is "pre-approved" at $500k.  I'lll keep the network posted on how this transaction transpires.  Should be interesting.

Monique Carrabba
The Carrabba Group
Keller Williams Hollywood Hills
P: (323) 899-2900


By David Chiles,  Wed Jul 13 2011, 16:13
Bank America has been a leader in the Short Sale Process. There website spells out everything. Thank for sharing you opinion about it.

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