Bank of America refuses to honor written agreement to help troubled homeowners prevent foreclosure

Press Release

Bank of America refuses to honor written agreement to help troubled homeowners prevent foreclosure

 

Jacksonville, FL – 1/14/2011 – After receiving written approval of their short sale, a Jacksonville homeowner who is facing financial hardship had their short sale rescinded by Bank of America. In a heinous act of deceit, Bank of America refused to honor its written approval to help the homeowners avoid foreclosure. This leaves the homeowner’s future in jeopardy and leaves all troubled homeowners nationwide to wonder if Bank of America is truly committed to preventing foreclosures.

 

Here is a synopsis of the chain of events:

  • Buyer offers $285,000 for the property as a short sale and submitted to Bank of America on 9/28/10.
  • Bank of America approves in writing the short sale at contract price on 11/22/10.
  • Buyer's appraisal comes in at $235,000 and is submitted with revised HUD & amendment on 12/16/10.
  • Bank of America approves in writing the amended short sale offer of $235,000 on 1/3/11.
  • The closing is denied stating the purchase price needs to be $285,000 on 1/11/11.

 

The affected homeowners paid to relocate their residence after notification the sale was approved only to be lost in confusion regarding where they should live. Bank of America has put the homeowners and the Buyers in a difficult situation and caused financial damages by not honoring their approval of the short sale.  Troubled homeowners nationwide should exercise caution when considering a short sale with Bank of America. Deceitful and careless business practices like this are the same reason Bank of America and other lenders cannot correctly prove they own these troubled loans and hire ‘robo-signers’ that caused illegal foreclosures in Florida and other states.  This deplorable act is indicative of a taxpayer bailed-out company whose careless acts are jeopardizing the economic recovery as a whole and need to be brought to light. 

 

Documentation and interviews available upon request. 


Contact:

Mike Linkenauger & Ethan W. Gregory

First Coast Realty Associates & The Short Sale Specialist Network

904-733-4911 & (877)737-4903

ethangregory@comcast.net

 

www.FirstCoastre.com

www.Short-Sale-Specialists.com

www.TheShortSaleGuide.com

 

***Update 2/19/11 - Thank you for all of your help in getting exposure to this matter.  It worked!  The property closed a few days ago successfully.  Thanks again to everyone who took the time to draw attention to this, together we can be a force to be reckoned with!

 

***PLEASE PASS THIS ON THROUGH FACEBOOK AND TWITTER DIRECTLY BELOW!***

 

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PLEASE READ!! PLEASE READ!!

 

Please help get attention to this urgent matter if you can in ANY way!  You can help by linking to this blog post on your Facebook and Twitter pages and forward this to any media contacts!  If Bank of America chooses to practice integrity and honor their original agreement, we will note the results on this page.

 

SOME IMPORTANT DETAILS - We have most ALL high up / escalation contacts at Bank of America already.  We have already contacted most all of them with NO results.  The loan is owned by Fannie Mae, and Bank of America is claiming that they made a mistake on the approval letter.  Media seems to be the next step for us. 

 

Just to clear things up, this matter has already been bought to the attention of: David S. (President), Bill B, Melissa R, Leslie L, Mark D, Noel K, Edward B, Eddie B, and Gary H to name a few executive contacts at Bank of America.  We do not have Matt Vernon's contact info, but at this point I doubt it would do any good.  Media attention seems to be the best solution for this matter.

 

It was an FHA appraisal from the buyer.  Any way you cut it, it is IMPOSSIBLE for ANY buyer to get FHA financing on this property for a penny over the $235,000 appraisal for the next six months.  FHA loans in this community are well over 50% of all sales...

 

Investor on the loan is Fannie Mae.  Allegedly, Bank of America did not even submit the $235,000 offer w/ HUD before issuing an approval letter.  Their mistake should be their loss.  ANY company with integrity and ethics should cover this loss.  Fannie Mae confirmed this and said that they never received the $235,000 offer.

 

It is a tough situation but not a dead one. I have a question, when you say "Bank of America approves in writing the amended short sale offer of $235,000 on 1/3/11." what does that mean? Did the negotiator respond via Equator, email, or with a revised approval letter?
Yes, the negotiator responded with a regular, written, Bank of America Short Sale approval through the Equator system.  Because of this, the buyer and seller proceeded to prepare for the closing.  More details were just written in on the post above.

Mike,

 

In my opinion, you need to be bringing this to the attention of Fannie Mae and have them slap BofA on the wrist.

I would send an email to Resource_Center@fanniemae.com and Loan_Resolution@fanniemae.com.

Dominique

I think we have to work together in order to get these banks be respectful and fair with our client and us, as a realtor, as a hard-workers.

 

They think that we are not doing anything and it is not true we are working harder than before and making less money than before and still we are here trying to help people and they are not allowing us to do that.

 

They are hiring people who don't know what are they doing and then they are receiving a pay check every week.  They really don't care if the house is sold or foreclosure; no matter what they are going to receive their pay check.

We work so hard with a deal; back and for, back and for and then they do a foreclosure on it, they don't accept the short sale, then they coming with a counter offer that the buyer cannot go and then they ask to the home owner to sign a promissory note for 20s, 30s, 50s or give 5k or 10k 15k, 20s cash contribution at closing; for a property that they are going to lose and, of course under that conditions the home owner decides walk away and where is our work, where is our pay check for our time, help and effort putting into it?

 

Do you think that is fair?

This is shameful!  BOA should be financially responsible for the buyer's expenses and should legally be forced to complete the sale.  It's obvious there was a simple administrative oversight on the part of the BOA closer. I had a similar experience about a year ago where we missed our closing date by one week because of permitting issue with a property that required a city inspector to come back out to the property.  An extension to close was requested and in a internal move the negotiator was re-assigned and the file was lost and postponement of foreclosure was never made.  The buyer lost thousands of dollars in repairs made to property to bring it to city permitting standards, not to mention appraisals, permit costs, and home inspections.  I am glad the State of Nevada just filed suit again BOA for decietful practices and acting in bad faith of Nevada homeowners.  Perhaps, you can file a complaint with FLorida Attorney General Office?  Good luck.

Tweeted @lvrealestate411 ...

I certainly hope you've got attorneys involved in this. Your first step should probably be to get an attorney to go file an injunction to block BA's foreclosure actions pending litigation of this issue. That step alone would probably resolve the issue.

 

I know that's not much consolation to your clients, but it would be beneficial and would lend significant credibility to any media attention you get. If your paperwork is as complete and documented as you imply, you probably will be able to find an attorney willing to take it on a contingency basis as well.

 

Does anyone know who the investor was? Or was it a portfolio loan?
I just wrote more details above in my 1st comment, investor is Fannie Mae.  They claim Bank of America never even submitted the $235,000 offer to begin with to them!

So Typical..... everyone thinks B o A is easy to work  with....NOT AT ALLLL.  Negotiators dont answer the phone, they dont respect contract timelines and they sit on files for weeks on end.. this is not positive work. I had an aproval then their insurance co.for B o A killed the deal and said it was unacceptable..... I sent an attorney in to "discuss" the matter--the insurance guy never even read the hardship letter-never fully reviewed the numbers... NOTHING-the attorney spelled the hardship letter out and the insurance agreed to the deal...duh....except they went ahead and booted it out of their system and I had to start the s/s all over again...... buyer walked........Oh and to add insult to injury, now my sellers are considering Chapt 7.......

It would be funny if it werent my 3rd sale on this property........lol anyway.... nexttttttttttttttttttttttt

Yes.  BOA is really making it very difficult for Buyers and Sellers.  If the home does not appraise, how do they expect the Seller to sell his home?  I had this problem with them a while ago when the Buyer was using BOA to purchase my listing and a BOA appraiser was appraising this property! It took several weeks for BOA to respond to the appraisal and lower the price but eventually we did close!

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