Bank of America Short Sale News
Much of the recent news surrounding Bank of America has centered around thier continued foreclosures on struggling homeowners despite making substantial profits. In my experience in helping homeowners, I have had to file serveral complaints on behalf of my clients with Bank of America's regulator, the OCC (Office of the Comptroller of the Currency). One persistent problem has been their conflict of interest with their wholly owned subsidiary appraisal company called "Landsafe". Now they are using staff appraisers to give valuations on their short sale properties for sale. This is an obvious conflict of interest. Landsafe appraisers have told me that they are under pressure to not give low values when they appraise assets owned or managed by Bank of America. How can an appraiser be objective and fair with an inherent conflict. My personal experience with Landsafe appraisers has been that they consistently come in with higher than market values and consistently fail to factor in the typically poor condition of the properties. As a result, I have been successful at countering these types of difficulties by filing complaints or escalations, ordering estimates for the repairs and ordering another independent appraisal.
Currently, the Attorney Generals of all 50 states are working with Bank of America to reach a settlement for their illegal practices. Many homeowners might have been victims but finding out is not that simple. This is the problem and why it is important for homeowners to investigate and work with professionals to fight for their rights and make the bank prove they have the proper documentation for their loan. Back in April, regulators charged the biggest 16 banks in the U.S., including Bank of America, JP Morgan, Wells Fargo and Citigroup, with "unsafe and unsound practices" on foreclosures and ordered a sweeping overhaul of their mortgage operations. And earlier this year, Bank of America reached a $3 billion agreement with Fannie and Freddie to settle a faulty mortgage loan dispute involving Countrywide Financial. There have been several mistakes made along the way but the unfortunate part is that the average homeowner who cant afford their mortgage doesn't have the financial ability to sue their lender.
There are several things homeowners can do, however which do not cost money that can help. For example, homeowners can request that the bank produce the origional note, tell you who the investor is on the loan, as well as use the varrious resources available when they feel like they have been done wrong by the bank like opening an escalation with the HAMP Solution Center or filing a complaint with the CA State Attorney General or filing a complaint with the OCC (Office of the Comptroller of the Currency. OCC complaints and general information can be found on their consumer website at www.helpwithmybank.gov. What to do depends on your specific situation. Homeowners should consult with an attorney for legal advice as this information is not intended to be legal advice. As a real estate broker, I am able to help in working with the lender and in doing a short sale so please call me and remember there is no cost to do a short sale since the short sale lender must approve the agent commission.
There are several things homeowners can do, however which do not cost money that can help. For example, homeowners can request that the bank produce the origional note, tell you who the investor is on the loan, as well as use the varrious resources available when they feel like they have been done wrong by the bank like opening an escalation with the HAMP Solution Center or filing a complaint with the CA State Attorney General or filing a complaint with the OCC (Office of the Comptroller of the Currency. OCC complaints and general information can be found on their consumer website at www.helpwithmybank.gov. What to do depends on your specific situation. Homeowners should consult with an attorney for legal advice as this information is not intended to be legal advice. As a real estate broker, I am able to help in working with the lender and in doing a short sale so please call me and remember there is no cost to do a short sale since the short sale lender must approve the agent commission.
Another article in June 14, 2011 Article cites Bank of America Hindered Foreclosure Review which is consistent with my experience. Lender are now involved in a 50 state investigation regarding two issues. "One issue is whether loan documents were properly transferred to the trusts, the person said. The trusts issued securities to investors backed by the pools of mortgage loans. A second issue is the due diligence performed on the quality of the loans going into the trusts and the representations made to investors, the person said." This is what is commonly referred to as "robo-signing" and more information can be found on my webpage entitled http://www.jasonhector.com/Robo_signing.html.
Bank of America is still the largest servicer in our area handling the majority of the short sales and loan modifications. You can visit the Bank of America Short Sale and REO Resource Center at http://www.bankofamerica.com/realestateagent. Bank of America short sales are processed on the Equator system. Borrowers should contact me directly at 818-357-9658 to obtain more information.
Bank of America Short Sales Tips
Since Bank of America is the largest servicer for the most part, there will only be more short sales done on their equator system. This is a big help with things like being able to initiate a short sale online or being able to message the negotiator or upload documents and complete tasks with ease online. Specific timelines are given for each task which is very convenient. Make sure you work with a real estate professional who is HAFA short sale certified because the program has benefits over a traditional short sale.
One thing they should change is their rule of not allowing homeowners to be under review for a short sale and loan modification at the same time. This is a problem for homeowners since the banks take almost forever to review a loan modification request while the homeowner's financial situation worsens and they run out of time with the foreclosure. If you are under making home affordable, however, an escalation can be requested to pressure the lender to make a decision on the loan modification. It is important to be prepared to do a short sale if your loan modification is not approved and the foreclosure process has started or you are one or more payments behind. The earlier you start working with your lender on a short sale alternative, the better chance you have of staying in your home longer since they can see that you are cooperating in helping to find an alternative to foreclosure.
The fact that you have found my website shows that you are taking action to get the information you need to get help you need. Studies show that the most homeowners first contact a real estate professional, like myself to help. Homeowners are going through a tremendous amount of difficulty and have qualifying hardships. My expertise is in transfering the burden so that homeowners can move on with their life while we work through this issue. A HAFA Short Sale is the preferred method for Homeowners who live in their home as their primary residence because there are added foreclosure protections, deficiency judgement protections and relocation assistance to eligable homeowners which may not be the case for a Bank of America Traditional Short Sale.
Bottom line, if you cannot sell your come for enough to pay off your mortgage balance, the investor on the loan may accept less than the amount they are owed. Plus, you can control the timing and terms under which you move. Also, if you qualify under the Home Affordable Foreclosure Alternatives (HAFA) short sale program, when you sell your home you may receive financial assistance of $3,000 to help with relocation expenses. If you do not meed HAFA eligibility, Chase may still consider a regular or traditional short sale. Sellers who are willing to do a short sale bring a lot to the table since lender stand to lose more if the property goes back to them through the foreclosure process. While doing a short sale, it is important to try and always have an active buyer so that you can have a reason to extend the trustee sale. Lenders will typically postpone trustee sale dates if there is an offer on the property or if the homeowner is under review for a HAFA short sale.
Bank of America Short Sale Department:
1-866-880-1232 Phone
Bank of America HAFA Short Sales (currently handled by third party companies):
1-888-387-0523 Phone (Loan Resolution Servicing on behalf of Bank of America)
1-877-863-9324 Phone (AMS Servicing on behalf of Bank of America)
1-877-824-0976 Phone (AMO Recoveries on behalf of Bank of America)
1-877-459-2021 Phone (UTLS Default Servicing on behalf of Bank of America)
Bank of America Foreclosure Department (AKA Home Retention): 800-669-6650 Phone
Bank of America Short Sale Department 866-880-1232 Phone
Bank of America Trustee Sale Information - ReconTrust - 800-281-8219
Bank of America HAFA Short Sale Required Forms:
