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written approval of their short sale, a Jacksonville homeowner who is facing financial hardship had their short sale rescinded by Bank of America.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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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%...

Investor 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 would cover this loss.  Fannie Mae confirmed this and said that they never received the $235,000 offer.

Have you tried contacting Fannie Mae? You need to contact them you may be surprised at how helpful they can be.

Just posted.. my best to you.

My usual last resort on some files(modifications),is the hamp escalation process.I know it's a short  sale, but you did mention this is a fannie mae, and Ibelieve the escalation team is the same.. Also , if your ss was part of the new program governed by hamp.. the contact is Escalation@hmpadmin.com They always call you and follow up.. If they are not for you they may be able to tell you how to contact Fannie mae directly!!! Good luck!

It was not a HAFA deal.

You might want to try: 

To report complaints or possible violations regarding ethical issues,
call the Ethics and Compliance Hotline:
• Callers in the U.S., Canada, Puerto Rico and U.S. Virgin Islands call toll-free
1.888.411.1744.    Found in their "Bank of America Corporation Code of Ethics".

 

That document shows a Brian T. Moynihan as CEO and President, as does their Investor Relations page of their corporate WebSite.  That also shows Barbara Desoer as President, Home Loans, and Charles O. Holliday Jr, as Chairman of Board of Directors.

 

May be one of them can be of assistance.

 

This part of their site also noted on 1/3/11 - that BoA was taking a $2.0B  "Goodwill Impairment" charge in 4th qtr of 2010.  You might point out to some of the higher ups that they will have to continue taking such hits, if they keep doing the kinds of things they are doing in this case.

 

 

I have contacted Brian Moynihan's office on a couple of occasions and my issues were dealt with and resolved quickly.

Mike,

 

I think your strategy is genius.  Everybody works their pay plan and bad publicity doesn't pay well.  On the other hand, rejecting short sales pays loan servicing companies extremely well. 

 

When the first 'robo-signer' suits were filed, employees of Wells Fargo and Bank of America were publicly named and their depositions were re-printed in newspapers and blogs everywhere.  Prior to that, those employees could hide behind their 800-lb employers.  But I think the publicity sent a subtle message to all employees of loan servicing companies:  You can't hide behind the 800-lb gorilla any more.  You can be held publicly accountable for your actions.  So I think it's about time -- go to the media.  Name names. Would you want YOUR mama to read about you 'accidentally' foreclosing on someone in USA Today?  You think you'd still be invited for Thanksgiving?

On the other hand, rejecting short sales pays loan servicing companies extremely well.

 

You've got that right Jennie!

Hi, it is most unfortunate. While I have had some difficulties with BofA on one or two files I have found for the most part they have been really trying to work with the short sales. It seems they have hired a lot of new personnel. I would hazard to guess that either the negotiator was new and/or dropped the ball in not forwarding all to Fannie Mae. My colleague has had a roller coaster ride with Fannie Mae and a Wells Fargo short sale. (Fannie Mae has lost files as well ...)

Definitely escalate.........It could have been the file was passed thru several hands and information was lost in the transfer as what happened with my colleagues short sale on Fannie Mae loand and new negotiator.

 

Nothing is dead until it is dead.......I say that in reference to a short sale with BofA I completed in February of this year.

I was told foreclosure was and will occur. Short sale was impossible. I waited a day after the sale date found out the foreclosure was postponed, called in to see if it meant they will work with us, got an emphatic NO and then 2 hrs later received email with short sale approval letters attached........closing soon followed.

Unfortunately these banks have thousands and thousands of files and some inept personnel and personnel changing from one day to the next.  Don't give up!

 

 

Trust me, this is just getting started.  The borrower isn't even in foreclosure proceedings yet if I'm not mistaken.  It has been escalated before.  It all boils down to the fact that Bank of America made the mistake of issuing an approval letter WITHOUT investor approval, and is basically refusing to eat the loss themselves for THEIR mistakes (It would seem).

After reading everything you have done and considering the mood of the courts these days, I would file an Order to Show Cause and intervene in the foreclosure action, file an answer and go after them.  Get a conference with the judge and show their obvious bad faith negotiation.

 

Here in NY, the court have held that you can't proceed with a foreclosure action if you are negotiating - its an obvious act of bad faith.

 

Consult with a foreclosure defense attorney and hit them where it hurts.

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