By Dave Robison
Mo Money Mo Problems! Bank of America has got it all. If they can’t even order a payoff, how is the Home Affordable Foreclosure Alternatives Program (HAFA) going to help? Do a short sale with them in 30 days! And a cry for help!
If the government gave you $45 billion dollars, what could you do with it? With that amount of money most of us probably think we could change the world! Bank of America got that much in bailout money. They got MO MONEY, but it looks like they aren’t changing the world, it looks like they have just inherited MO PROBLEMS! Yes, we all know the nightmare on their short sales; however there are more problems than that. Bank of America can’t even order a payoff for a home that isn’t a short sale and they are foreclosing on the wrong mortgage on property where they issued a reconveyance on their own loan.
There is some good news out there. There’s a practitioner in my CYBERSTAR Agent Network (group of practitioners nationwide) who did a B of A short sale in 30 days. I’ve been using equator.com to do short sales with Bank of America as well and have accomplished a 60 day turnaround. The main hiccup with us wasn’t B of A; it was my seller getting their information entered into their system. It is an online system that we knew they were going to convert to over a year ago. It took them a while to implement it but its up and running and working good! So here are the tips in working with B of A on short sales:
Tip one: Sign up on Equator.com Our short sale process has gone from 6+ months to 2 months.
Tip two: Keep good notes. What did you send to them? When did you send it to them? Document every detail. We even have our phone calls recorded.
Tip three: Micromanage the process. With the Equator system, you will want micromanage your sellers and make sure they update their info into their system. Your sellers can be a hiccup in this process.
Does it solve all problems? No, it doesn’t! I have four closings with B of A pending on a payoff. It’s not a short sale and they are foreclosing on the wrong mortgage. They get paid in full on these transactions! IN FULL! We have had the title company order payoff five times within the past month, spent countless hours on the phone and they have wasted a month of our time. Even if HAFA comes into effect, we are going to deal with problems. Some processes will get better as you see above, but HAFA isn’t the end all cure all. If B of A is struggling to give us a payoff for 30 days, then HAFA isn’t going to cure that. There are deeper problems that need to be solved. If its law that they give you a payoff in five days and they aren’t complying with that, how do we get them to comply with HAFA? Any thoughts?
Dave Robison, known as “Utah Dave,” is a broker of Robison & Company Real Estate.