by Atlanta Short Sale Agent on January 29, 2010
Here’s your scenario:
PMI (Private Mortgage Insurance, also known as Mortgage Insurance) company has a policy on the shorted loan that says they will pay the investor 20% of the loan amount. So if you have a 400K loan, that’s $80K total payout. In order to pay this, the insurance policy has certain things in place to make sure, just like any insurance policy, it’s designed NOT to be paid out. Some of those actually related to short sales.
In a short sale, the investor would like to get the insurance to cover their loss on this. In most cases, 20% of the total loan PLUS whatever the investor gets through REO Sale = MORE THAN YOUR SHORT SALE.
That’s a big fail.
This is why you see Bank of America short sales getting so many complaints. The investor is saying, “I want to help you, but based on my due diligence and my insurance policy, you need to bring another 20K to the table.” Dead deal.
by Atlanta Short Sale Agent on January 13, 2010
To say that Bank of America short sales are the worst is to say that World War II sucked. It doesn’t even come close to describing what it is like to deal with Bank of America on a short sale. That being said, they are predictable at least, once you know few things.
Here’s a few oddities that you probably didn’t know
- Before a file can be a short sale, homeowner(s) must call BOA’s Home Retention 1-888-325-6428 to let them know that they want to do a short sale. Then, Home Retention mails them a Short Sale Pkg & refers file to “Short Sale” once the financials are entered.
- Toward the end of the approval process it’s likely the negotiator will call you and congratulate you on a successful short sale. This means that Bank of America has completed THEIR job. They then will send it to the insurance company or investor for approval which could add another 60 days to the process.
We learned these two new things along with the edition of Equator, Bank of America’s new online short sale system, in the last 30 days!
