Short Sale with Bank of America

[Nelly1996]

Originally Posted by whatsnext11

Yeah the PMI can delay the process big time... My SS had pmi and they were quick at getting back but I have read awful stories..

So the 2nd lien on this short sale is PMI???

[whatsnext11]

So they will have to approve your sale as well as the bank... on our SS the pmi wanted the sellers to pay 3,874 dollars or they wouldnt allow the sale.. The sellers said no way they werent paying a penny so we asked if we could pay and they said yes so our SS went through because we agreed to pay the pmi company what they wanted!

[rjrcm]

Originally Posted by Nelly1996

So the 2nd lien on this short sale is PMI???

No. PMI = Private Mortagage Insurance on conventional loans with less than 20% loan to value. Click here for details:

The Federal Reserve Bank of San Francisco: Economic Research, Educational Resources, Community Development, Consumer and Banking Information

It's insurance to cover lenders in case of loan default. The PMI company will review short sales where PMI is involved, and they can veto the sale if they think they will lose too much.

Your agent should ask the seller's agent if a PMI company will be involved in the negotiations.

[logicdude]

Well let me introduce to you my unlucky story. I am not the Seller, I am the buyer in this short sale process. I originally wanted to put an offer on this home back in July 2011. I contacted the realtor of the seller and asked to get an offer processed. We filled the information out and submitted the offer. This realtor did not know how to process this eventhough he considered himself to be a short sale specialist. It took until January 2012 for his office to admit they did not know how to proceed. Never got to the point of decision, never got past equator in India. In January, that realtor backed out and we, both, seller and buyer chose a different realtor to process the paperwork.

OK got past chapter one and begin chapter 2. Submitted the paperwork with another short sale specialist and this time the process seemed quite streamlined. I was really confident. My offer was in a range that was supposedly accepted by the bank back in mid 2011.

Finally got an answer from the bank and they came in 64K over my bid. They had ordered a BPO which was extremely high comparing this home in a nice neighborhood but not in a premier neighborhood to home in the premier neighborhood that were built over 2 decades after this one. Actually comparing apples and oranges. Not a realistic BPO.

I sent in counter offer with realistic comparisons that supported my offer. They reduced the price 30K, meanwhile I had gone up 10K. Now we are 24K apart.

Bank came back with acceptance of the offer. I confirmed the agreement and resubmitted the admendment. I thought we were on the way to closing.

10 days later, the bank came back and said NO. After accepting the offer, the offer was submitted to the investors and the investors still wanted the 24K more to make the deal.

Talk about frustrated. No this offer was a cash deal. No financing, but since this home was for my and my family. I do not have the 24k and dont believe the home is worth the extra 24k from my research.

I am now stuck with 9 months into the deal and the bank first accepted the offer but came back 10 days later and did not approve it. What kind of dealing does Bank of America do to consumers.

Any Ideas of how this can be addressed? I can prove the home is only worth what my offer is, but they are interested. Looks like there is some major issues here with Bank of America and their process for short sales.

Frustrated
Logicdude

[Casieg]

Help Quick Please! Im a buyer who was scheduled to close on a short sale in 2 days. Title company receives HUD-1 packet and the selling agent listed 2% concessions but our PA states 6%, why would he try to change this last minute? Does he stand chance to make more money? Im assuming the deal will fall through as we have to close by the 30th, were set to close on 29th but now this issues has come about. Should I even be worried? Seller, Bank, and I have signed the PA @6%.

[mimi32013]

Our offer and acceptance letter was sent to boa. we were given a closing date. Then we were informed that boa sold the loan to another firm. two months later they tell us a counter offer is coming forward. finally they tell us we have to wait 15 business days for counter which is three weeks. is this normal