I listed my client home with (Bank of America) as a FHA short sale. The owner who has defaulted on her mortgage payments and has failed two loan modification guidelines. We have a short sale and a accepted offer from the owner. I submitted all the requested information, documents with the short sale package. Now the owner got a call from a customer service manger that stated that we must re-list the property in the amount of the payoff which is over  $100,000 of the market price. How can we be asked to list the property at the payoff amount with the home that's upside down and would surely sit un sold and forced into foreclosure. Vacant homes for a long period of time can become molded inside, possible thieves stealing the heat pump, kitchen appliance, toilets etc, especially in our area within the last few years due the high number of vacant short sale and foreclosures homes. I don't claim to be the know it all in short sale but this request just don't make sense to me in this real estate industry. Do anybody have any comments about this situation. Thanks

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Terrence,  According to FHA Guidelines the Property is to be listed at or near the As-is Appraised value on the Approval to Participate.  Have you received that?

There are still plenty of useless twits involved in BofA FHA, although BoFa made some changes since Sept 2012 that cleaned up a lot. You could be dealing with some loose BofA cannon.At the least, there should be some explanation for you - which you did not state, so I assume you didn't get one. Did BofA follow the FHA rules? Did the seller discuss fiinancials (initially and periodically thereafter) with the BofA CRM to have the CRM recommend the property for short sale? Did you fill out the BofA forms to say that the property is vacant and that it is NOT being maintained? That is a no-no. FHA considers a short sale a "gift" to the seller and REQUIRES that the property is being maintained or the short sale will be refused. (Logically, it is stupid to insist that a property sit for years until foreclosure instead of selling to a buyer at the acceptable SS amount, but that is what FHA will do.)

I have not run into your situation, but I can see some knucklehead skipping any rationale but telling you that, in effect, you (cannot do the short sale therefore) can only satisfy the bank by getting a full payoff. Does that seem to fit what is going on?

Once the FHA appraisal is done, you have the right to get it from the bank. They should not ask you to list it for more than the appraisal. The ATP will have the appraisal amount in it. Before you can get the ATP, you have to satisfy the points listed above and even explain how all judgments will be handled (another demented requirement, IMHO).

I explain this assuming you haven't fooled with FHA short sales much and you can piece together enough from this to see where things may have gone astray. Chase it down. Get an explanation. If it is screwier than the silly things I have listed, something is incorrect. If you get nowhere by calling the SS reps or the negotiator, try @BofA_HELP in twitter to escalate at BofA and/or call HUD to get them to straighten out BofA. It seems that your SS has been denied and someone is telling you that they want full payment.

Are you even talking to the Short Sale Department or the standard Customer Service?  Customer Service will know very little about a Short Sale and will give the wrong information.

Opps...time does fly. No this was a short sale representative. I did contact a director of BOA and explained our situation and as I thought the information given to me by that past representative was incorrect. We have resolved the problem and kept the listing at the original list price, accepted and submitted the offer. The BPO has been completed and the FHA short sale is being reviewed.

I have made it a point to go further than the necessary steps in getting these short sale completed or moved to the next level. I find that you can't just sit still and take what any representative is telling you or wait on a return call. You have be proactive and keep the process moving as well. Its a learning experience from each short sale that I have completed. Thanks for the response


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