You Are Fired! FHA/HUD Needs to Fire Bank of America - Period!

By
Real Estate Broker/Owner with Heart Realty Group, Inc.. IL-471.002355

Patience, Patience, Patience! With 3 FHA short sales submitted to Bank of America for over a month with still no actual activation my patience has finally worn out! Calling every couple of days, being promised that they will escalate and I should get an answer "within 24 hrs" and nothing happening will drive even the most patient agent to the brink of a nervous breakdown!

USA

So how in the world does Bank of America hope to keep the servicing rights when they have to actually give a response within 30 days when it takes 7 days just to get the short sale package scanned into their system? How will they be able to handle the volume of short sales being generated by their "easy and streamlined" short sale process being touted in the various web presentations and the promise to get FHA short sales on Equator???

The reality is definitely different than the hype! How many times can a file be "escalated" before anyone at Bank of America pays attention??? Your guess is as good as mine as I wait on the phone on my 6th escalation which will have an answer in "24 hrs.".....oh and how many times do you need to ask if the homeowners is on "active military" Do you think it will change within 30 days??? Is there any common sense involved when they come up with these questions??? Do you think people are being forced to join the military overnight because they can't short sale their home??

Perhaps that is the only way we can get an approval????

Posted by

Evelyn Santiago

Managing Broker - 630-251-0059

Heart Realty Group, Inc.

We are Passionate About Real Estate!

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Rainmaker
402,224
Raymond E. Camp
Empire Realty Group - Webster, NY
Licensed Real Estate Salesperson Greater Rochester

One of the problems as with most big businesses is too many "chiefs" and not enough "Indians."

The other problem is how will it effect my bonus and in most case to $%(& with the stockholder.

Jun 04, 2012 04:58 PM #1
Rainmaker
174,803
Marti Steele Kilby
Steele Group Realty - La Mesa, CA
Broker/Owner, San Diego, CA

Hi Evelyn,  OMG, I so feel your pain!  I can't tell you the short sale hell I've been in with B of A for the last year on several different files.  However, I did find something that works.  They actually have a whole social media team designed to keep down their bad press, so I would suggest that you either tweet them @BofA_Help or repost your rant on facebook or Wordpress.  I had a specialst call me and he was a REAL help, versus the ridiculous escalation process.  Here is the AR post I wrote on the subject http://activerain.com/blogsview/3051082/the-loud-girl-gets-noticed-b-of-a-gives-me-a-call- Hope this helps!

Jun 04, 2012 05:06 PM #2
Rainmaker
179,491
Evelyn Santiago, Managing Broker
Heart Realty Group, Inc.. - Oswego, IL
We Are Passionate About Real Estate

Marti:

 

I have used the twitter team on a variety of different files and although they can help things along once the file is opened I thought I would try blogging first and seeing if their filters catch this blog.  I will be sending them tweets tomorrow to start kick these files.  I really don't think that BOA gives a hoot about their bad press.  They need to lose some of their servicing business before they get their act together. 

Thanks for taking the time to comment and sharing your success with the "tweet" team.

Jun 04, 2012 05:12 PM #3
Rainmaker
174,803
Marti Steele Kilby
Steele Group Realty - La Mesa, CA
Broker/Owner, San Diego, CA

Bottom line is that they really don't manage their short sales.  Best of luck!

Jun 04, 2012 06:06 PM #4
Rainmaker
280,101
Marnie Matarese
J Wood Realty - Sarasota, FL
Showing you the best of Sarasota!

I encourage everyone I know to move their accounts and try to avoid BOA like the plague.  That our great country is included in their name is disgusting to me.  The are Bankrupt of America as far as I am concerned.

Jun 04, 2012 06:22 PM #5
Rainmaker
342,275
Stephen Howell
Coldwell Banker Residential Real Estate - Sarasota, FL
Sarasota FL Homes For Sale 941-870-4141

Bank of America short sale process is ridiculously slow.  I've had a short sale "in process" for nearly six months.  I can't believe how long it takes them to process these files.  It only takes 30-45 days to make these loans, but, it takes six-to-nine months to approve or reject a short-sale.

Bank of America's escalation procedure has got to be the biggest joke perpetuated on borrowers and real estate professional alike.  I'm sure there is some bono fida reason that they're taking so long to approve or reject short sales, but, I don't know it.

One thing is clear, that when the borrower used FHA or VA to insure or guaranty their loans, there's this hidden second step where the lender has to get approval by either of those entities to sell short, then BOA will decide if they want to sell short.

I had a negotiation, not at BOA, tell me over the telephone that they (meaning the lender) would make more money by foreclosing on the property than by selling it short at today's market value.  After submitting four different contracts to the bank, all within a narrow price range, the bank finally did foreclose on the property.  So now that home will take six to twelve months to come back to market and will sell for substantially less than what it would have sold short for.

Lenders don't want to lend.  Lenders don't want to sell short.  Lenders don't seem to want to do anything right now!!!  No wonder the housing market continues to be in such a recession. 

Jun 09, 2012 06:08 AM #6
Rainmaker
179,491
Evelyn Santiago, Managing Broker
Heart Realty Group, Inc.. - Oswego, IL
We Are Passionate About Real Estate
Well I finallt was able to escalate through twitter team. Was told that homeowners have to go through loan modification process and they have to be denied the loan modification before they are allowed to do a short sale. Now if BOA gives them a loan modification that makes no economic sense to the home owner they have to accept it? Will have to see how these 3 pan out. Would have been nice if they had told everyone at the beginning of the submission instead of having to find out 1 month into this. 2 of 3 homeowners had already done loan modifications - 1 denied, 1 given but it was only a $50 less a month which didn't help him so he told them he was going to do a short sale and they told him to go ahead without telling him that he would have to be denied again to actually do a short sale. It's always an interesting experience working with Bank of America but I think this time around it really takes the cake!
Jun 09, 2012 03:48 PM #7
Rainmaker
217,583
Erin Newington
(916) 548-9198 Real Estate Masters - Elk Grove, CA
Elk Grove Realtor

I feel your pain/ Been working on a short sale with Bank of America for 8 months now. Escalations don;t work/ I do get responses from the social media team which is nice. We have been going back and forth over one item on the HUD before they will give approval. We have been idling here for over two months. Escalation after escalation has done no good. BofA approved our short sale and now are holing the approval letter hostage! Annoying!

Dec 29, 2012 07:29 PM #8
Rainmaker
179,491
Evelyn Santiago, Managing Broker
Heart Realty Group, Inc.. - Oswego, IL
We Are Passionate About Real Estate
Erin. Have been able to close on 1 out of my3 FHA short sales with BOA. Currently fighting with them about an offer that waas submitted and which they froze in a 86% tier. Have HUD investigating their reasoning on denying it. The National Servicing Center for HUD is very helpful in pushing servicers to accept offers that you can justify with the data. Good luck
Dec 30, 2012 12:52 PM #9
Anonymous
Jeff Kofahl

I've often wondered how much money they collect in servicing fees from the time the short sale file is started until closing.  And if it forecloses how much money does the bank make there.  It very well could be that BofA is choosing a more profitable path and considering who they have in their back pocket, why not right?

Has anyone been able to track how long it takes them to do a short sale when THEY are the investor in the note vs. just the servicer.  

There has to be an explanation here.  And you know Congress isn't going to get to the bottom of it anytime soon.

 

Jan 22, 2013 08:34 PM #10
Rainmaker
179,491
Evelyn Santiago, Managing Broker
Heart Realty Group, Inc.. - Oswego, IL
We Are Passionate About Real Estate

There is obviously a financial incentive involved but the servicers will not be sharing that information with us even if we are their "preferred partners".   

I think a bigger threat are the hedge funds that are buying bulk to add rental homes to their portfolio - funds like Blackstone.  I fear we will become a country of renters if REO's are converted to rentals.

Jan 23, 2013 11:22 AM #11
Anonymous
Jim Fry, Realty World in VA

Just withdrew an offer on BOA/FHA short sale after 6 months of one BOA screw up after another. This was the BOA pre approved short sale at asking price. BOA appears to be incompetent, but I believe BOA deliberately delays causing the property to go into foreclosure. BOA then buys it back on the court house steps. Then gets paid off by the government, keeps the property and make one huge profit.

I have serious problems with this behavior bordering  on fraud. Wish I could find a real prosecutor.

May 07, 2013 05:46 PM #12
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Rainmaker
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Evelyn Santiago, Managing Broker

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