Home Buying in Orlando>Question Details

Brookeaweakl…, Home Buyer in Orlando, FL

Can anyone help me or tell me why it is taking so long to get a written approval from bank of america or if i can talk to someone?

Asked by Brookeaweakland, Orlando, FL Wed Sep 19, 2012

I have been trying to get a written approval on a short sale house that i put an offer on since june. they approved my offer but Bank of America has yet to give it to the listing agent to give to my realtor so we can then give it to my loan processor at Wells Fargo to start the mortgage process. Last friday Bank of America finally got a hold of the listing agent that then told my realtor that closing date is Oct. 10th because it goes into foreclosure on Oct. 11 or 12 but I have in my contract that I need 45-60 days for Wells Fargo to process the home renovation loan.

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Jennifer Steele’s answer
The listing agent (or who ever is processing the short sale) typically gets an extension letter so you would have time to get your loan together. The seller can go to court and request a 60 day extension for the sale and show the approval letter as evidence. If this is in Orange County, most of these emergency motions to extend sales date are granted if the short sale has been approved. However, the listing agent cannot represent the seller and the seller, if not represented by counsel, would need to file this motion him or herself to get in front of the judge in time.

Did the listing agent not provide you with the approval letter? Sounds to me the listing agent may have been sitting on the letter?

Good luck, I hope it works out for you.

Jennifer Steele
0 votes Thank Flag Link Fri Sep 28, 2012
Please can one of the agents let us know where the info on the number of short sales that close comes from ?

We have processed about 120 short sales. And have only lost 6 to foreclosure. Where does this in 10 fail figure come from ?
0 votes Thank Flag Link Fri Sep 21, 2012
Seems a bit strange to me. Before a bank can or will allow a short sale, the seller must be in default and therefore already in the foreclosure process. To come back and say the property is going into foreclosure is moot. The next step would be to complete the process which would change the status to a bank owned (REO)..

I spoke with an agent yesterday about a pre-approved short sale who said it was of little or no consequence whether or not the short sale had been approved. The bank(s) were finding all kinds of reasons to confound the process. She was frustrated to the point that I could hear it in her voice.

My guess, since the latest data shows improving prices, banks are prolonging the process in hopes of a better offer. She stopped short of saying that my offer would not be considered, even though there was an offer pending.

Patience is a virtue. But the squeaky wheel gets all the attention. If time is running out on you,
let them know that it is running out on them too. Current market conditions dictate more constraints on them than you. Do keep your credit intact, it is very difficult to get approved for a mortgage loan these days.

Good luck.
Not an agent... an investor.
0 votes Thank Flag Link Thu Sep 20, 2012

Unfortunately, as bad as the major banks are servicing short sale requests, BofA is, by far, the least customer service oriented. They tend to under pay, under train, and over work their employees. That then leads to massive turn over.
The best advise I can give you is to summon more patience than you may ever have.

Pat Palmer-Realtor
Boca's Best Broker

Direct 786-286-6557

Keller Williams
2424 N. Federal Hwy #318
Boca Raton, FL 33431
0 votes Thank Flag Link Thu Sep 20, 2012
It is taking so long because you and the seller are asking them to accept less than what is owed on the mortgage. You would be slow to respond too if your employer asked you to give back $50,000 of your retirement account.

None of us, not even you, have access to all of the data BOA has on this file. For all we know BOA might be better off foreclosing on the property, some times that is the best option for the lender.
There is a mathematical formula that would make it clear but I don’t know what it is. A couple of the components would include some number that represents how much you think it is a great deal vs what the lender would receive if they just take it to the court house auction. If they come out better doing that they don’t want your deal to close.

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Thu Sep 20, 2012
And to add, you might not even close at all. Short Sales 1 of 10 does close.
0 votes Thank Flag Link Thu Sep 20, 2012
Good morning Brookeaweakland,

Unfortunately the short answer to your question is this: there's nothing you can do. Even when the negotiator representing the seller in a short sale (Realtor or Attorney) is sharp and on point, at the end of the day the entire short sale process is dependent upon the efficiency of the Lender who must approve it.

The confusing thing for me is this: BofA was the first to adopt the "Equator" system for approving short sales. Folks I speak to here in New York have told me how efficient the system is and how timely the BofA short sale approvals are.

My guess is this: the Seller dragged their feet on this transaction. "Garbage in, garbage out," as they say. If the Seller and/or his negotiator did not present a complete package to BofA in a timely manner, then you really can't fault the bank.

As for the foreclosure, yes, it's a little realized fact that often in the short sale process the Lender is also moving to process a foreclosure simultaneously.

Not much you can do. If you are completely frustrated I'd recommend what I tell all my clients here in New York: DON'T BUY A SHORT SALE!!!

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
0 votes Thank Flag Link Thu Sep 20, 2012
Why is it taking so long?
Bank of America - an "F" graded lender
Wells Fargo - an "F" graded lender
Short Sale - The most convoluted buying option EVER.
Time constraints - Not compatible with short sale
Buyer - the least significant position in the transaction
Desire- you REALLY want the house. 70% of short sale offers never close as short sales.
If there are multiple loans, insurance companies and investors involved, the outlook becomes even more bleak. With such a list of ingredients one can only expect a wild ride trying to bake this into a home sale.
Read the overview of a short sale your agent provided including the disclosure document you signed. Come to terms that it's all true. Now, you must wait and/or have a plan B ready.
As the least significant player in the process, and very likely the first buyer to make an offer, you need to realize you are the 'token' buyer for the seller. Your role is solely to get the bank to respond so they can move to the next phase, usually the next buyer. You will realize why shortly.
You must keep reminding yourself that his may NEVER happen. This is so uou will not be all that disappointed when the predictable occurs. Should a miracle occur, you can truly rejoice. When a real estate professional advises a buyer that short sales are not for everyone, especially the faint of hear or impatient, they really mean it!

I wish you the very best in buying your new home.
0 votes Thank Flag Link Thu Sep 20, 2012
Sorry Brook. This is yet another example of why BoA is the worst Bank IN America. They really are hopeless, aren't they. I'm sure your agent told you that most short sales still fail. Now you are seeing why.
0 votes Thank Flag Link Thu Sep 20, 2012
The COMMUNICATION, all around, is ridiculous!

Real Estate transactions are not handled by ORAL communications.
Banks do not give ORAL approval of Offers.
If you have in the CONTRACT that there will be a 45 day Escrow, (No Bank would approve the wording; 45-60 days), then that cannot be chnaged ORALLY!
You would have to receive a WRITTEN adendum.

Everything is so screwed up, it is unbelievable!
0 votes Thank Flag Link Wed Sep 19, 2012
I'm not a realtor......this is my first house i'm buying so i'm sorry if my specifics are not exactly realtor lingo I just need some help in all this and yes i did receive a WRITTEN adendum.....and no it wasn't written in my contract with the wording 45-60 days......I was asking a question for some help not someone to be rude thank you.....if you have been in this business for a while then why can't you maybe help me and explain things so I understand them a little better and talk to me like a human being.....i asked a question for someone to help me not talk down to me.....if you weren't doing that then i apologize
Flag Wed Sep 19, 2012
What does your agent say? I don't believe your true question is the length of time for the approval but the short time to close.

The offer on a short sale is subject to the seller's lender approval. And their approval may come with conditions and restrictions.

The listing agent could attempt to convey to B of A your time line and request B of A to push out the foreclosure date. Perhaps it needs to be escalated to higher management.

Short sales are not for the faint of heart. Your agent is your best resource.

All the best to you.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Wed Sep 19, 2012
from the beginning the listing agent has been reminding BOA of my time line and that we need at least 45 days to process the mortgage. We are still waiting to get in writing from BOA (seller's lender) approval before we can proceed but they told the listing agent which told my realtor that we need to close by oct. 10 or they are taking my escrow money.....but we are again still waiting on them for the written approval because we can't proceed with anything until we get it.....i really feel like whoever the listing agent is dealing with, they don't know how to do their job
Flag Wed Sep 19, 2012
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