Bank of America is currently who we are waiting on for things to move forward with this short sale. They hold the second mortgage on the house and need to approve the short sale before things can move forward. If they don't, then the house could foreclose and they get nothing, so you would think they would be all about trying to get some money out of the deal and probably some insurance money too.
I've heard from several people though that Bank of America is one of the worst at approving short sales and the slowest in responding. On Wikipedia it states in their Short Sale page (click here to view) the following (which does not have a citation as to where it is from, so take it at face value);
Short sale success rates vary from state to state and from bank to bank. Bank of America short sales, as of 2009 are still the longest to be approved and have the highest failure rate. Whereas, Citi and banks like Wells Fargo tend to move faster. Smaller "local" banks tend to have their own rules, but will typically approve the short sale in days, not months.This recent blog posting (click here to view) talks about a new system that Bank of America is using for processing short sales, primarily for "Senior Loans" or First Mortgages. In our case, I think we are dealing with an Equity Line which still has to go through the FAX system which apparently has been notoriously horrible. This can be looked at positively I guess in that Bank of America is trying to improve I guess, but also in a negative way in that we are still dealing with the crappy system!
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2 comments:
Ken,
BofA does not like to hold seconds and often sells them off. This may be in your favor.
Kathy
I would hope that to be true Kathy, keeping our fingers crossed! The first has already been transferred to a company that tries to help the bank process short sales quickly and that one is working good so far.
However, what I put in the blog post after this one last night had some information about how BofA handles it's 2nds in these processes, for the ones they do hold onto I guess...not encouraging but we are remaining optimistic (and we are trying to pull strings with folks we know at BofA to try and get some inside info on the process).
There are so many things that seem to be in our favor on this particular property, it's strange actually. But it doesn't make the process any less frustrating and we can't get too confident that things will work, we're just trying to do everything we have in our control to make it work!
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