Bank of America FHA Short sale problems and Changes!!!

I have been trying to get an FHA file open since June 21, 2012 when it was imaged into the Bank of America  system. For whatever reason I have not been able to get the file open even though they have all the documents necessary to make it happen.    The foreclosure date was July 3, 2012 and one of the BOA twitter angels  (Lorraina) helped me get it stopped at the very last moment.  I thought I was home free,  but not so!!! Even though   I have escalated the file  and called every day,  I've been hitting a brick wall. I have escalated within the system,  filed complaints and opened a case with HUD, but after 45 days still nothing.   The financials have been updated for June and July.  The short sale can't be opened because it is too close to the foreclosure date which is now August 7, 2012.

Last Thursday I was told by Bank of America  that all FHA short sales will now be initiated in the Home Retention Department and no longer in the Short Sale Department. In order for one to be initiated the homeowner must complete the "waterfall" " which we have done. We've done whatever they have asked, but whoever pushes that magic  FHA button isn't doing it.  I'm in a Catch-22 situation.  I can't get the foreclosure stopped because the short sale isn't active.  The short sale isn't active because it it too close to the foreclosure date.

On Monday a kind  customer service person took pity on me,  read all the notes and told me that this should not be happening and she initiated a complaint in the system.  It was responded t to by a senior analyst named Stephen  Sass. He would not provide a phone number and responded via email even though I provided my contact information.  The number listed at the end of his message for his supervisor was a bogus number in the IT department.

Hello, I am sorry but I am not able to call you at this time. This is currently the best way for me to speak with you. This property has not been initiated for a short sale at this time due to the foreclosure sale date of 8/07/2012. FHA does not allow us to initiate a short sale if the sale date is within a certain timeframe as I am told. I am sorry for the inconvenience. If you have any other questions I would be happy to help you.

I have attempted to file a ticket with the HUD service center on 2 occasions. The first time HUD connected me directly  with the escalation department at Bank of America  but it was the wrong escalation department. I made a second attempt and I now have someone assigned, but after 3 days she has not returned my phone calls.

HUD has certain guidelines and timelines the servicers are supposed to follow.  They have 7 days to assign a negotiator,  and then 10 days to do the appraisal.  Their time doesn't start until they open the file.  If they don't open the file then they don't have to perform.  Is there a method to their madness here?

Bank of America is not allowing the homeowner to use the loss mitigation options that should be available to them. I'm now wondering if this is going to be the new Bank of America tactics. I wonder if they are going to deny FHA short sales because they are too close to the foreclosure date. I was told that they were following FHA servicer guidelines.

Isn't this what the settlement with the Attorneys General was all about?   The servicers have a duty and obligation to offer alternatives to foreclosure.  The homeowner has tried everything to get something done. 

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I would contact HUD and inquire to their policies in regards to initian close to foreclosure.  Bank of America FHA is still the WORST type of short sale out there!!!

I am working on a Bank of America FHA short sale as well....but haven't had nearly the problems you have, as we have no impending sale date. But it does seem the only way I can get anyone to respond to my file is thru the Twitter Angels. 

Who are the Twitter Angels and how do I get on board for those?

Lynn....register at and contact BofA thru there....their customer service is very good and we call them "Twitter Angels".

Update on my file...I got "contract approval" on 8/17" looks totally different that a short sale approval letter, but has all the right stuff and the Negotiator personally called me (I feel honored) and apologized for the delays on her side and confirmed that the short sale is approved. Yay!

Thank you Tammy!

You're welcome :)    That's what I love about this forum...sharing invaluable information!!

I have been trying to get a Bank of America FHA Short Sale opened and after going back and forth they said that the homeowner had to go through loan modification review first (she had done so before). So, that's what we're waiting for-- hopefully, it will work. Good luck to all.

I've had the same problem here. I have had several SS's, one of which was 11 days away from closing. 

I have worked hard for the past 2 to 3 years with people living for free, some times collecting rents to cover the mortgages and the Banks, one of which is BOA, has ended up offering these people either loan modifications or a Deed in Lieu. Of course these people will accept an offer for a loan modification as they can gain a few more months leeching from us. 90% of these people are illegal residents. Saxon, Geen Tree, BOA, etc. A Deed in Lieu is perfect for them as the banks will let them stay for free for another 3/4 months. BOA is even forgiving some 2nd liens on properties of owners that where never in default.

Where is our poor country going to end up when banks are continuing to give and then forgive money that we don't have thus allowing illegals to take this money back to their own countries? Haven't these people leeched enough from us?

By the way. Great, great experience with Chase Bank. 3 month closings from begining to closing.


I'm having the same issues (except there are thankfully no pending auctions on my files) with all new BOA FHA short sales.  I would try the twitter angels again.  I know how frustrated you are and you're not alone.  Every time they change their system their staff has a terrible time with it.  Hope this works out for you!

Gosh, this sounds exactly like my file that I could not get opened for a Short Sale and now am applying for the Deed in Lieu as there is a sale date of October 8th. No help from the FHA.  Not the Bank of America that I was use to doing business with.  They just don't seem to get the "FHA" investor types done.  I have no problems with the other types of loan with Bank of America, just the FHA. 

I didn't pay attention to any settlement - usually it means nothing, but I see now why suddenly my FHA files don't get started. It's like the airlines that move away from the gate so they won't be logged as leaving late - then sit for 1//2 hr.

I thought that the FHA loan mod people at BofA were screwing around. I was surprised when I asked multiple SS reps if these changes were BofA, they confirmed. How would they know if it were the FHA loan mod dept? Well, today, w/o asking, the FHA CRM for one file confirmed that she recommended the short sale on 7/27 - still waiting, and she did again today. Oh, so, it isn't them, it is someone in BofA SS dept playing games - that is why the reps could confirm (as I said) that despite FHA guidelines that you can only short sale or foreclose when the property is vacant, they are not starting the short sale. Some came up with something like "they don't have that they tried all alternatives" - what? There are none.

Now it makes sense - they are sitting on the runway because they don't want to get into trouble when they miss their new deadlines. At the same time, I'm getting these demands, usually through Equator, for things required in very short time - while it takes weeks to months for BofA to even work on a form they demand in 24 hrs. Yeah, nice job this settlement. Really working well, eh?

Good comments Joe! I know you said Equator and I know you know FHA is not on equator unless you have some news I/we don't have.



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