News from Title Express: BOA assigning loans to new servicers – short sale files closed out. Mortgage brokers no longer authorized to communicate with BOA on short sales starting April 14, 2012
Title Express writes: we have run across another fly in the ointment while working on a Bank of America short sale. We had been working on a Bank America Short Sale for several months and were days away from an approval when the negotiator warned us that the servicing of the Bank of America second loan was going to be transferred to Real Time Resolutions. In a effort to get this approval before time ran out, I had to reach out to all my contacts at Bank of America and plead with them to push this short sale through before time ran out.
We did receive an approval but, were told we had 3 weeks to close or else the servicing would be transferred and we would have to start all over with the new Servicer.
Ok, we were thinking this is an isolated incidence. Not so!!!! After speaking to other Agents, I’ve heard worse war stories. One Agent told me that she was in the middle to negotiating a Bank of America HAFA short sale only to be told that the servicing had been transferred and the new Servicer did not participate in HAFA therefore the HAFA offer was denied.
Another Agent told me she spent over a year negotiating a Bank of America short sale, only to be told after she received the Short Sale Approval that the servicing was being transferred and the new Servicer did not do short sales!!!
In light of these issues, I asked my contact at Bank of America for an explanation and this is the answer I received:
“Loans are serviced released for several reasons and getting out of paying for HAFA is not one of them. The loans are sold in pools due to servicing rights expiring or other reasons.”
On another note, Bank of America has a new third party authorization that must be used on all their short sales as of April 14. This authorization clearly states that only a licensed real estate agent, real estate broker or attorney can be authorized to negotiate a short sale.
“Each undersigned Designated Representative represents and agrees that, he/she (i) is a licensed real estate agent, real estate broker or attorney (“Licensee”) in good standing in the state in which the Property is located, and that Licensee has all licenses, permits or authorizations required by state or federal law to perform the duties undertaken by it in connection with the Short Sale,…”
It clearly does not include mortgage brokers or title companies on it’s authorization!!!
Vice President, Title Express, LLC