SunTrust - The rarely mentioned bank of horrors...

By
Real Estate Broker/Owner with BROKER of Green Realty Properties® - 954-667-7253 BK3175566

It is probably time that SunTrust starts to share the bad rep that CHASE and Bank of America are enjoying these days. If you have ever had a short sale with SunTrust you know what I am talking about.....

There is no real escalation process, the people who answer the phone at the short sale department cannot do ANYTHING for you, they are LESS empowered than the people who answer the phone at BoA (Yes - that is possible!!!)

I submitted a complete SS file in December. The file has been in "set-up" since the day after it was submitted (I guess I should be happy that this time, they didn't lose the file 3 times).

I think that SunTrust's short sale set- up department is comprised of one employee, his name is Charles. Charles in the one person who can order a value, Charles also orders credit and title.. Charles must be a very busy and very tired man...

Today I called, my routine call, and though I was not expecting major progress on the file, having worked with SunTrust before, I sure was not prepared for what "Donna" said to me. "Just to give you an idea on a time line, we are now processing files from August 2009, so it might be a few months more before Charles will even get to order your BPO".

I hear and read a lot about HAFA and I smile.. I think it is a little naive to hope that banks like CHASE, SunTrust and BoA will magically fix their severe internal issues just to follow the Fed guidelines, unfortunately, they are nothing BUT guidelines...

I hope I am wrong.

Thoughts? Comments? Experiences? I would like to hear all.

Posted by

If you or anyone you know need help Selling or Buying a Home in Broward & Miami-Dade Counties, please don't hesitate to call me at 954.667.7253

 

Help lots of people and have a great day!

Patty Da Silva, CDPE©, RESS®, AHWD®, e-PRO®, GREEN, CFS, TRC, RSPS

BROKER - REALTOR® Serving South Florida ::: 954. 667. SALE (7253) ::: Green Realty Properties®

Visit www.WeLoveSouthFlorida.com for SouthEast Florida's best properties.

 

 

Copyright © 2008 - 2014 By Patty Da Silva, CDPE©. All Rights Reserved.

Legal Stuff: This article (Contents) reflects the opinion of the author and it is not to be considered legal advice. The author is not an attorney or a CPA. If you are in need of legal or tax advice, it is recommended that you to contact a trusted professional advisor.

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Rainmaker
107,568
Keji Ogunleye
Fairfax Realty, Inc - Greenbelt, MD
GRI, SFR, KejiYour Realtor

I did a short sale with Suntrust last year January and the negotiator was great, however I did one with them in 2007 and it was horrible... So you just never know.

Feb 16, 2010 03:16 PM #1
Rainmaker
461,296
Patty Da Silva, Davie, Southwest Ranches Cooper City, Plantation, Weston, REALTOR
BROKER of Green Realty Properties® - 954-667-7253 - Davie, FL
Top Listing Broker

Hi Keji,

The loss mitigators have been pretty good, once they get the file... months and months later.. They have gotten slower and slower.. My last short sale with SunTrust was submitted in May - 09 and got approved January 2010.

Feb 16, 2010 03:25 PM #2
Rainmaker
129,407
Ray Wright
Keller Williams Realty - Riverside, CA
- Inland Empire Realtor

My last one was a couple years ago and they were the worst.  I haven't had one since and I've been quite happy about it.

Feb 17, 2010 01:34 AM #3
Rainmaker
461,296
Patty Da Silva, Davie, Southwest Ranches Cooper City, Plantation, Weston, REALTOR
BROKER of Green Realty Properties® - 954-667-7253 - Davie, FL
Top Listing Broker

Ray,

 

Isn't it sad that the banks make it SO difficult, unnecessarily!!!!

Feb 17, 2010 10:37 AM #4
Rainer
2,416
Machelle Morton Macatee
RE/MAX Homes & Land - Madison, GA

Unfortuantely I am currently attempting to get a short sale done with SunTrust as the 2nd lien holder.  It would appear that they would rather let the home foreclose than accept anything at all.  (sigh). 

Anyone else running into the same problem?

Mar 17, 2010 02:44 PM #5
Rainmaker
461,296
Patty Da Silva, Davie, Southwest Ranches Cooper City, Plantation, Weston, REALTOR
BROKER of Green Realty Properties® - 954-667-7253 - Davie, FL
Top Listing Broker

Hi Re/Max ; )

 

SunTrust is quite difficult to work with.. what is the offer to the second and what it is that the second wants?

Help lots of people and have a great day!

Patty Da Silva, CDPE©, RESS®, AHWD®, e-PRO®, GREEN, CFS

Mar 17, 2010 05:35 PM #7
Rainmaker
307,268
Margaret C. Taylor
Century 21 New Millennium MD - Mechanicsville, MD
St Marys/Calvert/Charles MD Real Estate Agent

I appreciate all your comments.  I was searching for information on SunTrust Short Sales because I may be starting one this week.  It sounds like you do your best to submit a complete packet and wait and wait and wait.  Margaret C.

Mar 22, 2010 09:45 PM #8
Rainmaker
461,296
Patty Da Silva, Davie, Southwest Ranches Cooper City, Plantation, Weston, REALTOR
BROKER of Green Realty Properties® - 954-667-7253 - Davie, FL
Top Listing Broker

Good morning Margaret,

 

Yes, hurry up and wait wait wait! That is SunTrust short sale process, no doubt...

Send a complete file and make sure your seller sends you updated paystubs and bank statements as time goes by, and you send it to the bank... dont wait for them to ask you for updated documents.. that will just delay it more.

Patty Da Silva, CDPE©, RESS®, AHWD®, e-PRO®, GREEN, CFS
BROKER - Owner REALTOR® - 954-667-SALE - Green Realty Properties

Visit www.pattydasilva.com for SouthEast Florida's best properties.

Mar 23, 2010 07:50 AM #9
Rainer
11,334
Dale Bradbury
John L. Scott Real Estate - Kent, WA

Patty, it's an appropriate title for your post.   I began a short sale with Suntrust as the first and second lien holder back in July 09.   The entire package including offer was faxed in during the second week of August 09.   Then began the weeks of stalling which turned into months.   I won't go into all the details and there really isn't a story to go with this, it's a pretty straight forward transaction.   Suntrust is just really screwed up.   Whoever is responsible for their processes in the short sale dept needs to be fired, plain and simple.

We had a BPO completed probably 3 months ago now and we've been waiting for them to get around to handling it.  They actually passed me through to the assigned negotiator a couple weeks ago and she told me she'd be handling the approval and she'd call when it was done.

I think part of their problem may be that they had to buy back a lot of their loans and that could have caused a lot of extra delays on certain files.   On mine they had to buy it back from FreddieMac and they told me that that will actually allow it to be approved sooner because now it's just an in-house decision.

Of course, we lost the first buyer and the second one is probably getting tired too.   The really good news is I met another homeowner who needs to do a short sale and guess who HER first mortgage is?  Suntrust!

Apr 24, 2010 07:29 PM #10
Rainer
1,701
John and Edie Miller
Miller Development - Grass Valley, CA

HELP! These posts regarding suntrust are less than encouraging! We have an approval (took 7 months) and the letter only gave the buyer 3 weeks to close their fha loan and now we need an extension (so far has taken about 7 weeks. i was told they needed to do a new valuation because property values might have increased!! No joke!). This is quite rediculous. Does anyone have any management contact information or a strong resource in suntrust who would be willing to assist me or give me clarity on what i should be doing? i have a couple of emails to the CEO and i am willing to try just about anything! I am in the process of losing a buyer over this! Signed, Desparate in Penn Valley!

Apr 26, 2010 08:49 PM #11
Rainmaker
461,296
Patty Da Silva, Davie, Southwest Ranches Cooper City, Plantation, Weston, REALTOR
BROKER of Green Realty Properties® - 954-667-7253 - Davie, FL
Top Listing Broker

Hello Dale,

 

I hear your frustration.. the last time I spoke with SunTrust they told me they were 9 months behind.. WOW.. that is really bad news for our distressed homeowners! Have you had any success since your post?

 

Hello John and Edie, emails, phone calls, visit a retail center near you... Do all you can, there is not magic way.. SunTrust is very very difficult to work as they do not seem to have a system in place to handle/manage the files nor do they seem to care. Let me know how things are going.

May 28, 2010 12:20 PM #12
Anonymous
Anonymous
Michael

After reading the above, I thought I'd relay my recent short sale experience. Perhaps it will help someone out there.

First, I am a buyer not a real estate professional but believe I am an educated buyer and I remained closely coupled with our realtor throughout the process. By the way, our realtor had done 3 successful short sales in the last 2 years, maybe that’s not a lot maybe it is. I will say I believe she did a good job and all she could to get this deal done.

Second, I would recommend that if a property has a first and second mortgage, you seriously re-consider whether it's worth pursuing as the difficulty goes up exponentially. In our case, BOA had the first and SunTrust had the second.

BOA was using their new Equator portal for input and communication. It did seem to simplify the submittal process (prior to Equator, our realtor had to fax our original offer in 3 times before they got it) but it did not speed up the process of interaction and approval. To make any real progress, our realtor had to call customer service and “escalate” every entry.

SunTrust used the old “throw it over the fence” (or perhaps “black hole”) process requiring constant follow up on the part of our realtor. The inefficiency of this process was exacerbated by the fact that she was almost never able to talk directly with the negotiator or her supervisor as they never answered their phones and rarely responded to emails. Instead she was left talking with customer service who did little more than read entries off a computer screen and certainly could not make any business decisions (actually I don’t believe the negotiator could either but more on that later).

After a 3 or 4 months of work we got written approval by BOA on our third offer, pending approval by SunTrust, which turned out to be an exercise in futility and defied all logic.

First, SunTrust required a payoff equal to 10% of their outstanding loan amount, remember they held the second. As BOA would not contribute anything from our offer to the payoff of the second, we increased our offer by the amount requested by SunTrust.

Second, SunTrust insisted that our offer be greater than or equal to 80% of their BPO. Why I don’t know, again remember they held the second not the first. And why was this significant, because BOA’s approval amount and SunTrust’s approval amount only came to 78.6% of SunTrust’s BPO. Our realtor tried for several weeks to convince SunTrust that increasing our offer to 80% of their BPO made no business sense as it only put several thousand additional dollars into the pockets of BOA. You see SunTrust was not asking for an increase in their payoff only an increase in our total offer and the resulting increase would have to go to somewhere - right into the pockets of their competitor, BOA.

It was at this time, I decided to contact the Office of the President at SunTrust HQ in hopes that someone might be able to apply some business logic to the problem and help get it resolved. I spoke with one of the President’s assistants and explained the situation. She exhibited great empathy for our plight and provided the direct line and fax number for the short sale team leader and asked that I contact her again if I needed further assistance. I will say we got a faster response but no more logical. The negotiator continued to insist that we increase our offer even though the only beneficiary would be BOA. We finally conceded, increased our offer and submitted a revised HUD to both banks and that’s when the lack of logic went into overdrive.

BOA would not approve the revised offer stating that their investor would only allow a maximum amount as a payoff to the second to show on the HUD statement, roughly half that required by SunTrust. Our realtor’s attorney revised the HUD showing the difference required by SunTrust as a contribution from the buyer to SunTrust reducing the contract sales price accordingly. BOA approved this approach but SunTrust would not. They insisted that their complete payoff by included in the contract sales price and shown as a payoff to the second from the seller. Neither bank would budge. I even contacted the President’s assistant again but as before all it got us was an illogical answer faster.

When it was all said and done, the deal broke down due to the formatting of a document. We met both banks’ payoff requirements and then some. Ultimately, BOA got tired of the whole thing and moved forward with foreclosure. SunTrust seemed tied to some guidelines that defied all business logic, at least in this case, and all but forfeited any opportunity for recovery as in GA all junior liens are extinguished with a foreclosure.

Aug 30, 2010 06:18 PM #13
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Rainmaker
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Patty Da Silva, Davie, Southwest Ranches Cooper City, Plantation, Weston, REALTOR

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