Doing A Short Sale With Bank Of America

With all the lawsuits that Bank Of America has pending against them and all the negative media in the last few years you would think they would do a 180 on their business practices by now.   I am sure they have done some improvements in their business practices in the last few years, not because they wanted to but because they have been forced to.   Especially with all the bad foreclosures that happened and with all the robo signing screw ups as well as mishandling of the paper work.  But it seems that rather than accepting responsibility for their business practices they are still using the same excuses and doing some of the same business practices that got them in the mess that they are in.   Sometimes it makes you wonder how did Bank Of America get to be too big too fail in the first place and where did it all go wrong.

I have been working on doing a short sale for the last 6 months on a property  that happens to be one of the Santa Maria homes for sale.   The property happens to be 2432 La Costa Dr., Santa Maria, Ca. and a very nice home.   Now one of the things when doing a short sale with Bank Of America is that they utilize a company known as Loan Resolutions Corp. to help facilitate the process? At least that is the idea, same idea that the Equator system is used to communicate with the agents to make things easier and more efficient.   So when doing a short sale with Bank of America you are dealing with the bank and investors and LRC as well.  So more moving parts only makes things more simple?

Well turns out that the short sale was approved since Oct. 29, 2012.  But no approval letter was generated?  Or issued ? Now every time I followed with the Negotiator assigned to the file I am told the letters are being reviewed for approval, and I was even told at one time I would have the letter no later than Nov. 08, 2012 well that did not happen.  I did follow up and then told and educated there are other loans in the process and this is a 5 step process on approving letter, writting the letter and reviewing etc etc., and to be patient.  But the suspicion did grow when my calls and emails via Equator went unanswered for days as the seller awaits for a decision as well as the buyer.  Although the huge difference is that the seller has a huge tax liability for thousands of dollars looming over his head if the short sale does not close before Dec. 31, 2012 since that is when the Debt Forgiveness Act expires.

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Finally after hours on the phone 11/21/2012 and being transferred several times and even losing connection a few times who knows could of been an error. I finally did get hold of someone that let me know the letter has been generate twice just never sent to me because the buyer was getting  VA financing.  According to the internal notes on their system they did not feel that buyer could close on the transaction before 12/14/2012 because the loan was scheduled to be SOLD to another servicer.   But remember the short sale was approved since 10/29/2012?

This was unbelievable!!! The short sale is and has been approved and its been in the process for months and they had loan scheduled to be sold next month?   Forget about the homeowner having huge tax consequences, forget about the buyer making plans and being patient to buy the home.  Forget about the work and time involved to get the short sale approved and submitting all the documents requested.  Forget about the short sale process would have to be started all over again from the beginning with a new servicer once the loan is sold.

Now upon more phone calls and discussion Bank Of America is blaming LRC (Loans Resolutions Corp), and LRC is blaming Bank Of America but neither one is accepting responsibility for the current situation.   This is completely unprofessional and indifferent to all parties involved, where all parties involved are and or will be suffering some kind of financial losses due to the mishandling and just unprofessional handling of the file.   Bottom line is maybe not all banks are still operating this way but at least one is.   Rather than being truthful and upfront with their intentions.

 

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