Short Sale by Freddie Kreuger "Nightmare on Main St USA" (appraisal, mortgage)

[Norm Barnes]

If you are buried in house and do not wish to totally destroy your credit you might consider short sale. But should you? I've only been involved in one and to tell you the truth that as a Realtor it shall be my last. Bank of America handles their short sale electronically through a system called Equator. I can only say the money could have been better spent. A benefit of the system is a central library were documents can be reviewed rather than faxing to many areas for determinations in short it provides a means that the decision makers can review documents and make decisions without the expense of a paper trail and employee involvement. A hindrance is that it provides information without any discourse as to the facts of the short sale - much is surmised or determined on a non-unique basis and if the situation doesn't fit a certain mold then you arrive at a "Nightmare". The property I speak of listed in November 2011 offered at 165K and by August after 4 Appraisals by the Mortgage Company it was listed for 105K and sold for 98,212, all cash, and no inspections. A cash agreement in many markets can settle in less than 30 days and it is considered the creme de la creme of agreements. Enter Bank of America with their system "Equator" just in uploading the application a problem arose as a previous offer that had been submitted and found unacceptable had virtually erased all the data about the property and I was forced to submit all the applications, documents and authorizations all over again -- so much for Library. You never have the ability to speak to someone everything has to be done over their system and as a result you have to be available at their convenience either immediately or after a long wait. At the point of agreement much of the detail could have been worked out with a "human" simply and they and I could move on to our next duty. As they choose to handle it it runs into continual misunderstanding and confusion. I even had a congressman be involved withou success. Brian Moynihan seems distraught that his bank is spoken of so irreverently. I say to Mr. Moynihan if you wish a better reputation and bank; then you must conduct a better bank looking to create a better reputation and provide superior customer service. "Bank of America" is the Freddie Krueger of North America and stay tuned for many added "Nightmares" they choose to create. If you are a Realtor and have had this poor service speak out you can't fix it unless someone recognizes there is something wrong.

[middle-aged mom]

If I lent someone a significant amount of money and the borrower wanted me to agree to take less and write off the loss, I probably would make ole Freddie look like a cream puff.

[Silverfall]

I haven't had too many issues with Equator, but I look hard at my short sale clients before we start to make sure we can close the short.

[breeinmo.]

At 1st I thought you were talking about a amazing realtor we knew in California, his name really is Freddie Krueger. lol My kids had a stand up figure of Freddie and he signed it. That man is/was honest as the day is long. Sorry for your troubles OP.

[Norm Barnes]

In Delaware County Pennsylvania there had been 185 homes scheduled for foreclosure. At the onset the Sheriff amends the list based on those removed or stayed before they go through by month beginning in about February and go through those properties continued or again stayed. They then go through and offer the remaining for sale. By my count there had been about 5 private purchases and several where the Attorney entered a bid of $1 over the strike price. It was concerning to see that many properties come to sale because these REO's dilute value and upset the stability of a neighborhood. Home prices are already all over the place. Often times adverse comments are tendered about the taxes in Delaware County in particular Drexel Hill but if you equate value based upon home construction, repro costs there is value even with the higher taxes. The school district comments is very concerning and perhaps the school district should consider relocating the High School and bring it up to speed so that the family feel they are getting something for the money. I would love to see Action news do a slot on tax revenues, collection and distribution. I would be glued to the TV. I would love to see the money tracked from the time the homeowner pays until it actually is used to handle an obligation. If you are out there Action news bring this wish to life. I am sure a vast number of us would like to see the money tracked from the pocket to School system.

[Norm Barnes]

Today about 3 of the approved HARP loans, generated calls to our office to seek assistance in selling the home in which they live and can no longer afford the payment. The financing arrangement was no less than insane. You have to understand there are those who are paid in connection with generating a HARP loan and they are the only winners. These carelessly engineered loans will cause the perplexing problem facing homeowners to get worse and in this area it is clear that it is has already taken its toll by causing sliding values from a 2007 high in the low to mid 100's to under 85K. One of the customers has refinanced under HARP 2 times and they were about to approve a 3rd. This is insane when will the banks say uncle and charge off some of that amazing profit they have accrued and adjust the balance on these loans to realistic actual worth. The reason no doubt "Wall Street" last time they fell and bumped their heads this time they will fall and may be not get up. Prepare yourself for an event. It can be lightened if the fat cats in these idiotic banks adjust these balances and finance a reasonable amount of the balance owed.