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Is Bank of America obligated to look at the short sale offer we offered on 05/29/08? Seller accepted our

Asked by , 55109 Mon Aug 11, 2008

Seller accepted our offer but no short sale agent assigned before Countrywide assets frozen for acquisition. Tried calling BOA and Countrywide-no one gave answers. Our agent says sit tight-we have a qualified renter to move into our current home. How long before we should we wait without knowing for sure we're being considered?

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I worked at BofA for 12 years and during the past 18 months we have been told via management weekly, not to waste time with short sales paper work and to push clients into foreclosures when we can.

Why, because a federal program exists to write down foreclosures but not short sales. Until this law changes all banks will act the same. BTW the law was enacted in 2005.
1 vote Thank Flag Link Tue Sep 22, 2009
I think one thing that most of the general public forgets is how the housing crisis has forced thousands of homeowners into short sale. I'm one of them. While I didn't have a loan with Bank of America, I am very familiar with their process and how the short sale process works as that's what I do for a living. Countrywide was the largest servicer in the country servicing loans for nearly every bank. Most of the public doesn't even know that. Yes, the short sales take a long time with Countrywide/Bank of America, but most people have no clue that each short sale negotiator has over 300 loans in their pipeline. Think about it, 3 offices, hundreds and hundreds of negotiators (All phases...1, 2 and 3) all with at least 300 loans. Not to mention how many loans haven't been assigned yet. This is why they take so long. How many agents submit fake offers just so they can list the property saying "bank approved". Do any of you realize how much of a ficken waste of time this is to a negotiator? Why are they working on offers that don't exist?? I've heard numerous agents do this because they think they can get a quicker approval. Ok....but what does that do to the other agent's who have a legitimate offer? This is why it takes so long to get through these loans.........
1 vote Thank Flag Link Mon Aug 17, 2009
We have been trying to buy a home that has been on the market for over 1 year and is a for short sale. We put in an offer on the house on December 23, 2009. The offer was accepted by the sellers on December 31, 2009. We completed a home inspection on January 9, 2010. The offer was then submitted to the banks holding the sellers mortgages with an April 15, 2010 close date.Bank of America (BOA) holds the 1st mortgage and Flagstar the 2nd . We waited over two months with no response from BOA, so we had to amend the contract on March 1, 2010 to extend our financing contingency until May 31, 2010. We learned that BOA had completed their internal BPO (appraisal of the property) and they finally approved the short sale on April 6, 2010 (after 4 months).The file then went to Flagstar for approval. We again had to extend our financing contingency. On June 8, 2010 (2 months later), we finally received Flagstar’s approval with the contingency that we close by June 30 or they would foreclose. Although we finally had both approvals, the VA loan process normally takes 45 days. These banks were asking us to close within 3 weeks! On June 15, I contacted the Senators Isakson and Chambliss’ offices to be liaisons to the VA to expedite our file there. With the help of the Senators and the quick and efficient work of our mortgage broker, we were able to get our funding through and approved to close on June 28, 2010. BOA offered us incentives for closing early; however, we were only ready with our file on June 28, 2010. We set an appointment with the closing attorney, however, found out in the morning of the 28th, that the closing attorney had not received the final approval from BOA. Therefore, the close date was extended to June 30, 2010. On June 30, 2010, we were again told by the closing attorney that BOA erroneously let their internal BPO lapse and expire. They insisted that they could not close without a current BPO on file. So even though they had asked us to close early, they did not have all of their paperwork ready. The following was the information given to us by the seller’s real estate agent on June 30, 2010 “BOA has declined the closing for today despite the fact that they APPROVED it and called to offer the buyers an incentive to close EARLY (by June 25) due to their investor stating the valuation is an out of date valuation. We spoke with a supervisor who has escalated the process and who agrees that they (BOA) have made the error by failing to notify anyone and for failing to order an updated valuation…We have called everyone from VP's to supervisors to escalation managers...The team leader for the closing department at BOA is now involved and walking this through every step...We have ALREADY received an extension from the 2nd lien holder with no conditions until 7/15. It is very possible this can all be accomplished and closed by 7/15 but we are certain it cannot happen today.” BOA ensured our real-estate agent that if we asked for compensation for their mistake that we would have to start anew with new offers, appraisals, etc. (120 days+) so we didn’t submit for compensation. However on July 9, we received a counteroffer from BOA on our original offer (which they had already approved), even though two weeks before they insisted they only needed a current BPO and all other paperwork remained valid to close. Further, it is currently July 14, 2010 and they ensured us that they could close by the 15th, but we have not received any information from them since July 7, 2010. D.D. and G.K. of BOA were supposed to be guiding our file through the system because of BOA's mistake. However, they have again dropped the ball because we are going to miss our July 15th close date. Flagstar only agreed to extend to July 15, due to BOA’s mistake. Our financing is only valid until July 30, 2010 and if we don’t close by then, we are going to have to walk away from a deal that we spent 8 months involved with, spent our money on inspections and appraisals, and would ensure that we lose the federal tax credit for new home buyers. Furthermore, we cannot understand why BOA would not want to close with us considering that if we don’t close on the property, they will have the property in foreclosure. Both banks have been inefficient, unreasonable and illogical to work with and as a buyer caught in a short sale, I will neither recommend short sales to fellow buyers nor recommend BOA or Flagstar. They have been truly incompetent. Why wouldn’t a bank move quickly to sell a property that has been on the market for a year and is about to go into foreclosure?
0 votes Thank Flag Link Thu Jul 15, 2010
BoA is absolutely rediculous!! We were originally only looking at bank owned properties when we ran across the perfect house which happened to be a short sale. We expected that the process would take a while, but we put in our offer anyway. We made the offer in Feb. of this year. It has now been 5 months of being jerked around about new negotiators and what color we are in the pyramid program they apprently applied recently.
I am now 8 months pregnant and really wanted to be in our new home before the baby came. Even with this being said, I had come to terms with not making our due date dead line.
We found out today that despite the fact that we had a deposit and a contract in place that our "dream house" had recently gone to foreclosure and was auctioned off. Now the question is were we contacted by anyone at BoA to let us know the situation, no! It obviously took some time and consideration to foreclose on the property, how is it that we find out after it has all taken place?
The kicker is after all of this they would have made at least twice as much money off of us had it not gone to foreclosure! It is scary to think that these are real people, not computer programs, who are choosing to be so heartless...you know who you are and you should be ashamed of yourselves! Its called Karma, and it will come back to get you!
0 votes Thank Flag Link Tue Jun 1, 2010
B of A has made great gains. As a Realtor I personally have closed three Short Sales with Bank of America since January 2010. They have ranged from 52-86 days from start to close. I feel my days of taking 5-9 months are behind me as an agent. Mike Stephens, Ahwatukee Realty, Phoenix, AZ, Mike.ARPM@gmail.com
0 votes Thank Flag Link Mon May 17, 2010
I took us almost a year from time of listing our old home last year in May 2009 to go to settlement. We found our dream house in January 2010 and then found out it was a short sale (I wanted no parts of a SS!). However... it really is our DREAM house so we made an offer and signed contract of sale 1/22/2010. We know the market very well and offered a very fair price... not a lowball offer... and it was based on local comps. GMAC was the first mortgage holder. They agreed to the sale right away. Turns out that the second mortgage holder was Bank of America...you can guess the rest. Like Whitney, we have been in limbo the past 4 months. We went ahead and closed on our old home 3/31/10 and moved into "corporate housing" locally. Corporate housing is where they charge you double for a month-to-month lease. We did this for several reasons: 1) allow the sale to go through on our old house, and 2) have a place to stay while BOA goes through their dance. We found out today that they want to close on 7/8/10...one week after the $6500 tax credit expires! So far, we are on the hook for $3000 for 3/4 pt to extend our mortgage rate lock (5.125%) ANOTHER 30 days, $3500 in storage carrying costs for our worldly goods, $1500 for the "extra" move (because we will have to move twice), will lose out on our deductions at next year's tax season since we're not paying mortgage interest for past few months, not to mention the pain of living in a tiny apartment while waiting for our new digs which will be an amazing 4 times the size. We're living in limbo and ask ourselves everyday why BOA has to treat nice normal buyers, who are paying fair market price in our area for this house, with such indifference. We are not the Seller. We did not make this frivolous loan of $150,000 (second mortgage) on top of a massive first mortgage (yes, the internet has amazing info available if you dig a little!) to someone who was overextended. The Seller is a nice man caught in a bind, and we are the solution for him. At this point, we are waiting to hear back from the Listing Agent if BOA will budge on settlement date. The house does need some work and the $6500 would really come in handy for the repairs. Has anyone else thought of suing BOA?
0 votes Thank Flag Link Sat May 15, 2010
My husband and I waited out a few short sales for several months each, but they didn't pan out. After over a year of searching, we found what we feel like is our dream house, and, even after finding out it was a BOA short sale, we made our offer...OVER 8 MONTHS AGO. Still no answer. I have always had bad experiences and bad service with BOA, but this is completely ridiculous...I've never heard of such. Who can live in limbo for that long? This is just incompetance. Someone needs to do SOMETHING about it.
0 votes Thank Flag Link Fri Apr 23, 2010
Exactly as "Fed Up" posted below, I put in an offer on a BoA/Countrywide short sale on April 8th, 2009. I offered 93.6% of the short sale price, so I feel it was a very reasonable offer, at the very least. 6 MONTHS later, I have still not heard anything definitive... I'm still hanging on, but the tax credit is about to expire, so i may have to bail.
It looks like I was "tricked" into believing that I was just unlucky in my situation, but reading all the responses below, now I know that the BoA responses are most likely corporate-mandated lines of BS. Here are the things i have been told in the past 6 months:
- My paperwork was lost
- The file was given to a new negotiator
- The file was "escalated"
- The file is in the hands of the final negotiator
- They are merely waiting for the signature of approval from the investor

Does any of this sound familiar???? It should -- they're all the same BS lines that were given to all people that have posted on this thread below. It appears to me that BoA management is instructing their short-sale dept to give these responses. Why? I have no clue, to me it makes no sense. But anyway, if you are reading this and you have a short-sale bid in on a BoA property, then good luck, but you may be waiting for awhile longer...
0 votes Thank Flag Link Mon Oct 5, 2009
Real Estate Pro Colorado. Whereas your argument does hold some merit, it is very limited in it's scope. I will give you credit for the point that sending in fake offers is not a great practice for agents to do. However, the reason agents are doing this is because of the extended time that BofA takes in handling these short sales. I have been involved with dozens of short sales at my real estate office and no one is as horrible as BofA. I have one now that is on it's 5th negotiator and every negotiator gets 30 days to respond in any way to the file. In addition, the negotiators are arrogant, rude, and non-responsive. Bank of America needs to exposed for the way they are handling these proceedures. There is no defensive that will satisfice for the manner in which BofA is abusing its power and authority in regard to short sales - not to mention the significant amount of money that is being lost due to properties being forced into foreclosure when they could have been sold for a higher dollar amount. BofA is also commiting a disjustice to the individuals credit that is being harder hit by foreclosures than by a short sale.
0 votes Thank Flag Link Mon Sep 28, 2009
I am the purchaser of a short sale in Oregon. BOA received our offer that the seller accepted on 4/8/09. The seller has since submitted their financial information 5 times........Our offer is in line with BOA's appraisal that was done in early June. Our appraisal was done 5/27/09. The listing agent has been diligent about contacting BOA and has now been told a "negotiator" has been assigned...........this was in July. We have now issued a deadline of 8/27/09, as this is the date our appraisal expires - still no action. The bank's appraisal will expire about a week later. Very frustrating...........we are relocating to the area, have a child in school...........the list goes on. I believe that BOA is behaving in a FRAUDULENT manner. What are they waiting for?? What a waste, and empty house - for a year. I have been hauling water to maintain some of the nicer plants that would be expensive to replace............I'm sure to no avail at this point.
0 votes Thank Flag Link Wed Aug 12, 2009
Good Luck with that. I have been waiting for ONE YEAR!!!! For Countrywide now Bank of America to complete my short sale and today found out that because I claimed Bankruptcy last month my transaction is on hold for another 2-3 months. I call weekly for updates and each week it's the same thing a new negotiator is assigned who never calls me back so "managers" escalate my file to order the BPO...the same one that was allegedly ordered on 12/20/2008! I'm so distraught. When I orginally called them for help because my commissions were few and far between they told me to get another job because it wasn't their fault. One year later I told them that I'm so upset to be potentially losing my buyer and only shot at a short sale which will likely cause it to go into foreclosure and sherrif sale...I said that this will make my credit even worse that I will have to wait 7 years to buy again vs. the 2 years for doing a short sale the customer service representative said "what did you think was going to happen to your credit when you filed Bankruptcy it's not our fault that it's wrecked"!!! I couldn't believe my ears. I'm an honest person who is a victim of the economy I was proactive about making things right finding someone to lease the place and then buyers and what do they do....lose my paperwork 3 times and completely blow me off!!! This is hands down the most unprofessional abomination of a company that I have ever dealt with!
0 votes Thank Flag Link Tue May 26, 2009
I might add here, if you really want the house and you have the time to hang out until they figure it out AND you're prepared for the worst to happen that they reject the offer. I just had this happen. We had a short sale offer on the table for 3 months and it was a considerable amount OVER the listing price. We just found out alst week it was rejected. So, unless we come up with a new offer and are willing to sit around for another undefined period of time, we're done with that one.

The point is, you need to try for the best but be prepared for the worst. From there, you can make your decision on whether or not this is a process you're willing to put up with.

We, as real estate professionals appreciate when people post their uncomfortable experiences here so we can tell our clients about them. Many buyers think they are going to get a GREAT deal and it's going to be a piece of cake with a short sale/foreclosure. They may get a great deal/they may not, it may work, it may not. It's a matter of where a buyer's comfort level is with the level of risk. If a buyer is comfortable with the high risk/no control of a short sale/foreclosure, that's their choice. But I like them to go in with their eyes open and that's hard to do without being able to show them some stories. Thanks!
0 votes Thank Flag Link Tue Aug 12, 2008
I have a house listed in the Dallas area as a short sale. I submitted the short sale package to BOA with 2 offers on May 29 as well.. I've called them daily since then... finally 2 weeks ago I find out that it was assigned to someone that doesn't handle short sales. It is very frustrating. One of the buyers bailed out (I don't blame him) the other one is hanging in there.

Today, I was able to talk to the head guy of the short sale dept. He is the one that assigns the analysts. I have been asked to call back on Friday for an update.

So, hang in there if you think it's worth it to you... It's a waiting game it seems.
0 votes Thank Flag Link Tue Aug 12, 2008
The bank has no obligation to do anything. It is solely at their discretion to even consider a short sale. On average only about 1 in 3 short sales come together in my experience so you may wait (months more potentially) to get a response (which still might be no) or you can move on. Short sales are very aggravating and it is very common for them to take 2 months or more so you are not completely out of normal yet.

It depends on how bad you want the house... if it is really the best and you have to have it, wait it out.
Web Reference: http://www.AaronSOLD.com
0 votes Thank Flag Link Mon Aug 11, 2008
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