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As alarming and counter-productive as this change should be to agents with shortsale listings or buyers; several RECENT changes to default policies & procedures at BofA should be cause for much more alarm.
The information is based upon my personal experience rather than the Bank of America published responses provided by their PR department and management who are in 'protect my job' mode.
As many other agents on REO Pro, in addition to the REO properties I list & sell, I also handle shortsale listings. Most of us agree in many ways, a shortsale transaction is similar to an reo transaction but less expensive to manage, market and sell PLUS getting a superior commission compared those paid for reo's. Because of these similarities, I have been aggressively marketing shortsales and for the most part, enjoying some success.
Interestingly enough, I find that on average, 30-40% of my listings at any given time are serviced through Bank of America.
So when BofA changes direction with their shortsale policies, the impact is immediately felt; - Especially when a policy change has a massive negative impact with far reaching and devastating consequences to the entire residential real estate market due to the sheer size and lemming-like behavior of its two largest competitors; (Here's A Hint, their initials are: WFB & JPMC)...They won't be far behind.
Here's Today's BofA Bizarre Policy Response: Two days, two shortsale transactions, two dealkiller policies forcing BofA properties into foreclosure & trustees sale. Both Offers Have Buyers Offering At Or Above List Price In With Most Comps at Listed & Selling At Lower Prices.
OFFER 1: BUYER SUBMITTED OFFER- 60% DOWN/OWNER/OCCUPANT BUYER, CONV. LOAN SUBMITTED 7 WEEKS AGO. No Response from BofA the entire time. B OF A REQUIRED SELLER SUBMIT TO HAFA WHO DENIED. SINCE THEN, NO ACTIVITY ON SALE.
TODAY BofA Sent HAFA DENIAL LETTER......ALSO TODAY: B OF A POSTED NOTICE OF TRUSTEES SALE IN 21 DAYS(08/04/11). BANK OF AMERICA REFUSED TO ALLOW TRANSACTION TO PROCEED: REQUIRED SELLER/BORROWER GO THROUGH HAFA PROCESS- ANOTHER ALSO TODAY; It's SELLERS BIRTHDAY AND SELLER HAS STAGE THREE CANCER WHILE CARING FOR ADULT DEVELOPMENATALLY DISABLED CHILD. BofA TAKING ADVANTAGE oF termially ill mothers who care for their developmentally disabled ADULT CHILDREN.
Next Up: TODAY, Property Two- BofA 'Investors' remove FEES FOR owners title policy, county transfer taxes AND 3%BUYERS CLOSING CREDIT!!! B OF A NEGOTIATOR ADVISED AGENT TO AGREE TO INVESTOR COUNTER AND SUBMIT UPDATED HUD1 THEN MAKE REVISED HUD1 THAT NET'S TO ORIGINAL LOWER AMOUNT THEN FORWARD TO CLOSING OFFICER for hopeful POSSIBLE REDUCTION...
Wow-----Ive always felt B of A was hostile..... their PR dept like the other BIG 2 lenders.....work hard to appear helpful and interested in our economy, their clients and our "curious" housing problem. The fact is... most lenders are hostile and its getting worse. These new policies,commission reductions,extented time just to get a negotiator is all part of the reality that lenders are not in the short sale biz. If we can barely get paid, will we complete shortsales...hmmm ...rt?
Its hard to work in a playing field that keeps changing. Hopefully the general public will start to see that all the PR is bogus Crap....and go for smaller lending institutions for their future biz......!! THAT.... is the only way to hurt Goliath(s)
Thanks Rick for bringing this OUT!! Our personal struggles with these lenders should be made public as much as possible!
As the foreclosure-gate winds down you can expect to see more of this in the coming months.