Bank of America just approved the short sale for Island Princess Unit 310 on Okaloosa Island, Florida. It took a longer-than normal 4.5 months. And we're going to have a hard time complying with the closing requirements....
The closing deadline: today. Enough said.
The approval letter date: yesterday. 
It's Wendy!
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email Wendy: itswendy@rulnickrealty.com
Fort Walton Beach Florida Real Estate
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Clearly they send out letters of approval without reading them.
Clearly BofA will count this as an approved SS whether or not it closes.
Clearly banks don't know how to sell real estate.
I got an approval letter once with 8 days to close. We did it, but you's is simply nonsensical.
I have lost any and all faith in Bank of America. They are one big bad joke.
I had a similar situation, i was on pins & needles making sure it went through. Wow, good luck getting that one closed today, what time is it there? :)
I have seen two week closing deadlines but this is ridiculous. How did you solve it? I'm assuming you were able to? Craziness.
I'm guessing that you didn't make it...
Lenn - I think this has been floating in there system for a month, and they just got it to me.
Jenna - No we didn't make it :)
All I can say is WoW
I just contract a BOA Short Sale today and listed another. Lets see how we do in TN & KY
GEEZ -- love the not so fine print, with borrowers paying the per diem "fees" CHA - DING!
Wonder how long the approval sat in someones in basket before it was sent out? Love BoA....NOT!
I really don't understand BofA. I recently attended a short sale seminar they put on, where a very senior member of their team stood in front of 100+ REALTORs to tell us how committed BofA Mortgage promised to be in the immediate future. Lalalala.... Color me doubting.
Good Lord --- this is totally ridiculous. They act like they want to improve the short sale process, then they come up with stuff like this!
Your buyer couldn't close in 24 hours? Wasn't the title company ready with a title commitment just in case someday BOA approved the deal? That is inexcusable! I'm obviously being facetious. This bank has been the hardest of any to deal with. They could make their lives so much easier by getting with the program. Good luck to you!
Well - thanks for making me laugh on a Friday afternoon - too bad it's that kind of laugh where you really are wanting to bang your head (or someone's) against a wall! Too crazy!
This would make for a good Saturday Night Live Skit...Too bad this post wasn't a topic of a board meeting at BoA
I have one with BofA now that is taking forever. Which reminds me I need to call the listing agent again today. Soo sorry that yours didn't close. Much success to you. Have a great weekend.
Jane Pacheco
I'm guessing it was a typo. But must have sent your heart rate up for a second.
We got a BofA approval letter today with 30 days to close, full 6% (on $355k price) and deficiency-waiver language already inserted (on a recourse loan, no less).
It's all about attitude. If you think it's going to be hell going in, it probably will be.
Gotta love Equator and BofA - another prime example of their Top Notch service.. If you can only wait for the 20 minute survey at the end of the call! I have a few deals with them and it's like I'm participating in a circus every time we communicate with them.
Wendy: That's one for the local Better Business Bureau manager! I know BOA hates BBB complaints and takes them seriously.
Yikes!
Wow, the horror stories just don't stop with BOA. Even the greatest lender ever would have a hard time with a one day close.
I wonder if it is a typo...ask and you should be ok. Contact Barbara Desoer's office. Here is her email: barbara.j.desoer@bankofamerica.com
They have been great to me. You probably already have friends in her office though. :)
Come on Wendy....can't you close that quick? I havew recived thise too. They were usually corrected once I pointed out their error.
This one beats everything I've seen from BofA!!! If anyone can get this closed it's YOU Wendy!!
Wendy
Ha ha. Why is this NOT a surprise? Could be another error of their ways. Even if you ARE a miracle worker this could stump even you.
Jeff
Ah - The Walmart of banking at it's finest. I am hoping but not too optimistic on how Equator will pan out. So far the 3 we have punched in this month came back with an error on set up message and 2 rejections on value. We are disputing the values.
Impressed with the process with Nat City/ PNC, Well Fargo, HSBC and Chase (although they are stingy on commissions)
Not only can you get it closed that fast, Wendy, you even have time to post about it! Rock on.
A survey just came out by the California Association of Realtors and they wanted to know how agents, were dealing with short sales with all the banks out there including BofA. The questions pertain to how difficultly, it is to close a short sale.
Hopefully, this survey will have a positive effect. Its a first.
Wendy, grrrr, gnarl, doesn't that just make your day? Of course you can have it changed but it does make you feel like you're in a Dilbert cartoon sometimes.
Bank of America is the pitts....I am surprised that anyone actually banks with them.
Wendy, oh they're so brilliant...you'll get the updated extension and they'll want a per diem - ha! Never a dull moment in the life of Short Sales!
I guess the bank thinks this is a good way to add to their bottom line while the buyer waits 30 days or more to close.
Pretty funny or pretty sad depending on how you look at this. Let us know if it was a typo.
Oh joy, I have just got an offer on a BofA listing, cannot wait for it to get better. Approval October 1st if I am lucky and closing well let me think-how about September 28th. I think I'll warn the buyers agent.
Wendy I just posted on Short Sale Superstars, I had a BofA approval in 30 days. Used the equator system, and they gave us til Aug 3rd.
Really? So what's new? Something tells me the buyer will be moving on? Sorry for all of your hard work and the buyers agents hard work in keeping their buyer client in the deal. No rhyme or reason to any of these in my estimation. Every short sale is a new adventure!!!
We just had a BofA approval letter issued on 7/12 with a close date of - you guessed it - 7/12. These instances are not oversights or typos, but are instead based on some parameter that had been previously input into Equator by BofA (BPO expiration date, anticipated close date, etc.). The negotiators apparently do not have the ability (or perhaps just not the desire) to override these and must issue the approval based on what the system is telling them.
To have them issue an extension on your approval is a simple procedure. All you need to do is complete the 'upload settlement statement' task by supplying a revised HUD with your anticipated close date on it. They will issue you new approval documents based on that date - this usually only takes them a few days. The exception being if your BPO has expired (BofA only gives these a shelf life of 90 days). In that case a new BPO would have to be ordered and the values input before your new approval would be issued - this can take up to a couple of weeks to complete. On the bright side, I have never seen BofA require any per diem charges for extensions.
I had one of those last week and I had to contact management in order to get it changed. The deal was accepted on May 19th for a July 9 closing. It took them until July 6 to approve the deal, and when the letter came, it said July 9th. At first, they (B of A) said it was my fault because I didn't allot enough time in Equator when I wrote in a closing date. To quote you, "enough said."
Well at least there's one good story about B-of-A out there. I've heard a lot of complaints about them from the MLSA group I belong to.
Love how they make the approval letter impossible to comply with. Ugh!
I had a call from BOA last Monday close and wire tranfer funds the same day. Impossible, due to wire tranfer rules going from west coast to east coast. The investor Freddie Mac foreclosed on the home 3:30 pm the same day. All Cash was in escrow, all documents signed and all parties begged that this did not make sence and close and wire the following am. A Foreclosure took place. Insane
Thanks for the warning on this one. Just got an offer on a BoA short sell listing. Might as well put a good extended date on the contract from the start, just to try to save time on a screwup on dates on their part.
4.5 months is not unusual. Most of my BofA Short Sales are taking close to 6 months for approval and they are providing 40 days after issuance of the letter to close. It hasn't always been this way, but they are getting better! Also, it does not matter what the date on the contract is or what the Buyer and Seller have agreed to, they are not approving the terms of the sale, they are merely approving a short payoff & release which they wil honor through a certain date.
Best of luck, we can only hope it continues to improve.
How nice. What's the matter, can't you close that fast? Looks like that letter sat on the closer's desk for a little while. Never been in that situation, but have negotiated extensions with BoA before. At least, count your blessings, you have this one approved. Now watch for the foreclosure date!
No they read them. I just lost one with bank of America also. They have had it since Feb and on June 28th we get an approval and it has to be closed by July 12th. We called them and was told no extent ion would be allowed that they were about to foreclose if we could not meet that date..Now who can do a financed deal in 15 days? Never had a loan close that quick even with Bank of America!!!
One of our agents just went by my desk and said that she will NEVER do another short sale if BAC is involved in it. And this lady takes on some of the worst case scenario sales I have ever seen. So again Bank of America has ruined their reputation with an agent and two buyers. We bail these guys out and they basically treat us as dirt. Funny!
I have had a BofA Short Sale thats been in process for 9 months now. It seems this bank is thwarting our every move.
I'll throw in a vote for the minority here. Bank of America IS getting better - and Matt Vernon is largely responsible for that improvement!
I just received an e-mail yesterday that stated that Texas had joined a class action lawsuit with 15 families against Bank of America for their short sale and foreclosure abuses. I'm going to be watching to see if something happens with this.
Wendy: B of A doesn't have to do a better than terrible job of protecting it's investor's assetts...the Fed has given them so much money and no matter what they lose on Short Sales they receive the loss, plus, from the Fed. AND when the bear a loss...the Fed pays for it. SWEEEEEEET!
Why get better when it doesn't matter to your bottom line?
I notice Tony and Suzanne above think B of A is getting better because of Matt Vernon...well...how could they get any worse?
Matt...oh, Matt...is anyone listening? I thought not.
Current Score
Home team - Away Team
Common Sense vs B of A
0 58
I would love to know what idiot sends these things out without bothering to read them! This is typical BOA!
I am not trying to defend Bank of America, but I agree with alot of what London said. I think the negotiators are relying too much on the automated dates set in Equator when the file is first inputted. Just based on the sheer number of short sales they must have in process (most likely every Countrywide loan they purchased), its amazing the system works as well as it does.
And I would say that B of A is aware of the limitations of the Equator system and their negotiators based on the email they sent out about a week ago that stated that even if you accept a counter offer in Equator, it doesn't mean that it is an agreed upon deal. They still have the right to change or modify the counter. So they don't even trust their own system.
My first clue that this wasn't going to have a happy ending is when it started out with BofA. Sad business practices in all areas!
That would be funny if it wasn't so frustrating and difficult to straighten up.
Where is the money in the Short Sale business? after 5 or 6 months, max commisionn 5% (BOA), 2 Realtors 2.5% each ,less expenses , broker's fee, taxes, ????
I am wrong?
show me the road !!
I prep my short sale buyers to be prepared for a long wait to get lender approval, but to also be prepared to close quickly once they provide it. But same day closing? Yikes!
I'm involved in 2 B of A short sales. We just got word on July 14th that escrow needs to close by July 19. Took 3.5 months to hear that. They gave us 3 business days, which I guess is better than you got, but definitely not enough time. B of A will instead foreclose. My other deal has only been going since April 30, so I guess we have a few more months before we'll hear anything.
Wendy this must be so frustrating for you and your client. There are so many of these sort of stories out there; it is really sad.
Congrats on getting your approval letter. Way to Go!
Amazing! The stories never cease to amaze me. Sorry for your frustration. Clients think they are the only one, and look at us like we messed up. Clients think, "how could a mega bank be so inept. It must be my agent." You can see it as they look at you in disbelief. RRRRRg!
It would be interesting to sit down with the big wigs at B of A and ask them what they're trying to do? Looks like EVERYTHING they do is anti-consumer.
My home loan is with them because they bought out Countrywide. It took me 6 months to get them to send me a statement in the mail. It was about 4 months before they began responding, telling me they were reviewing my request and would get back to me within 30 days. Then when they finally did begin mailing statements, they wrote me 3 or 4 letters telling me that my request had been approved. And this month - they sent 2 statements.
I don't think they know what the he-- they're doing!
It's the old left hand/right hand thing. My buyer client was getting a B of A loan. The loan office told us they were backed up and would need 45 days to get the loan done. Meanwhile, the property offered on was a short sale with two loans, both B of A. When we got the bank approval, we had 9 business days to close. We were able to get extensions, but it would be logical for the lending side to communicate their backlog delays to the loss mitigation departments. But wait. We are talking about banks here!
BOA of is a bunch of jerks. This equator system has been real tough too. My last deal with BOA was they wanted 5k more for the house, the buyers complied. After that BOA didn't want to pay concessions because they said the buyers were conv. when in fact they were FHA. Then they wanted a 10K from the sellers, now if a seller is in a short sale are they really going to have 10K laying around to pay you. So then they wanted a 20K promissory note or the 10K at closing...well the sellers filed and discharged a BK and the property was in the BK...I guess enough said.
This is only the beginning, folks. 2-4 more years of this, and the pending Commercial loan implosion, will have us all wishing for a better time... say, sometime during the mid-1800's. :)
Let us know how this one turns out. Will someone there figure it out and extend the deadline?
Thank you for your comments us. Here's the latest update:
Bank of America said to upload revised HUD and they extend the closing. But then they noticed their original approval was OFF by $5000 (too low), and that the MI approval had expired. So-- they have to resubmit for approval :)
Oh of course! I just had them sell the 2nd to another lien holder and we just signed at escrow so now we have to go to new 2nd lien holder and start all over!!!! Grrr
The banks will soon be sued over their per diem fees and I think they will probably lose. It is frustrating how they take all the time they want while agents try to get their buyers to hang in there with the process and get very demanding near the end. It is almost like they are trying to drive the buyers away.
I attended a WCR meeting on Monday and the 3 "top guys" from BofA, Chase and Wachovia/Wells were there to discuss short sales and what's coming.
Starting in 2011, theer will be NO postponements of Trustee Sales nad NO extensions of closings on Short Sale Approvals. They all want to clean out the inventory as quickly as possible. All of the have put procedures into place to speed-up SS approvals. Wachovia has cut the paperwork to 13 pages, will send a representative with the agent to meet with the seller and will provide an approval within days. They are also paying 6% commission with a 1% bonus if the property closes by February 28, 2011. That's all in place right now, at least in CA.
All three companies gave a few "nuggets" to take away.
100% of my business for the past 3 years has been short sales (with the exception of 1 transaction which was the sale of a client's house who bought a short sale. - I almost didn't know how to handle a standard sale - LOL.
Here's a link to some news that just came out - many of you have seen it, but it's good to read again. I think we have 8 more years of short sales.......
http://www.dsnews.com/articles/lps-more-than-7m-mortgages-are-delinquent-or-in-foreclosure-2010-11-17
Just my .02
Thom - Thank you for summarizing the new info for readers! I also suggest you (and everyone) join www.ShortSaleSuperstars.com and feel free relay your notes there, too.