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Permalink Reply by Sharon Molnar on February 3, 2012 at 3:25pm

Find out who ownes the loan. That might be your way in.

 

Sharon

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Permalink Reply by Roberta Hutchings on February 3, 2012 at 5:05pm

 

Banks are hardline about arms'length transaction. The new Freddie Mac Arms length rules went into effect on January 1.

The statement that may apply is : "The sale of the Mortgage Premises is an "arm's length" transaction, between two parties who are unrelated and unaffiliated by family, marriage or commercial enterprise" (Emphasis mine.)

This may be what they're hewing to in not letting BAC employees purchase BAC serviced distrssed properties.

 

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Permalink Reply by Denise Orrico on February 3, 2012 at 6:01pm

Perhaps there was a lot of "flopping" going on among employees who had access to inside info-  

In 2009, we had a BofA employee who worked in the retail mortgage side of their loan dept purchase a short sale we had listed..He claimed he was going to live there. The property was a beautiful single family custom home w/ 5 bedrooms located in a beautiful family oriented neighborhood- (He was a single guy who did not need a 6,000 sq ft custom home)...  With-in a week of closing, he claimed he was allergic to something in the house, even AFTER he ripped up and replaced the carpeting-...He turned around and resold it quickly and netted himself $50K.... 

Just sayin'.....

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Permalink Reply by Roberta Hutchings on February 3, 2012 at 6:05pm

Yep. That's why the rules are in place, and I have no problem with those guidelines AT ALL. There is no sale worth losing my license over. If a BAC employee wants to buy a short sale, there are plenty out there NOT serviced by Bank of America!

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Permalink Reply by Dana Harris Carter on February 5, 2012 at 1:54pm

I'm not aware of a specific policy addressing employees buying company foreclosed properties. However, the "Arms Length" transaction is enough to justify their stand. Regardless, of whether the employee works directly with the foreclosure s or not they are privy to things that the average potential buyer would not be privy to find out ie) inside trading. I've been a Preforeclosure/Bankruptgcy/Fraud Specialist for 15 years and all I have to say is count your lucky stars that you found out in time and the offer was rejected. Otherwiseif it had closed, you would have not only risked loosing your real estate license but you could have faced federal prison time along with your clients in the next cell.

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Permalink Reply by Lewis Patton on February 6, 2012 at 10:34am

I do not understand. Why, if this is a situation that could "land the clients in jail" is this policy not communicated to bank employees in the most urgent manner? Both purchase contracts were by BofA employees unaware of such policy, one is a Senior V.P. And as of today no one of authority in the bank is willing to provide a written document expressing such policy. We were told the policy "was not in writing." WHAT? Everything in a Corporation that big is in writing. Especially something that could send an employee to jail for simply purchasing a home.

 

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