Bank of America has notified the national underwriters that a short sale scam is being perpetrated involving properties on which Bank of America is the holder of a note secured by a mortgage or deed of trust. In its letter Bank of America has indicated that the perpetrators of the scam send approval letters to title companies that mimic legitimate approval letters from Bank of America, including the bank’s logo, formatting and language.
In response to this issue, Bank of America states that it has updated its existing short sale approval procedures. On all transactions for which the original principal amount of the loan exceeds $500,000 all Bank of America approval letters will contain the following statement:
“Bank of America appreciates all of your efforts and cooperation in this matter. If you have any further questions, please contact our Short Sale Customer Care Department at 1-866-880-1232, Option 1.”
The letter from Bank of America goes on to say that if that number is called that it will verify the following information with the title employee who calls:
- Loan Number;
- Property address;
- Closing deadline date;
- Original borrower’s name;
- Approved buyer’s name;
- Short Sale price amount; and
- Net proceeds amount to B of A.