B of A Payoff Question - Urgent Help Needed

[DustinLH00]

All,

I am looking for suggestions. My mortgage with B of A was included in my Ch 7 Bankruptcy. The property just entered foreclosure. In the mean time, I recieved and accepted an offer on the property. We have gone through appraisal, inspection, everything and have a closing date set of 1/14. All I needed was the payoff figure from Bank of America and we were done. Got the payoff statement today and their fees are so high that it will kill the deal.

I can afford to pay the Principal Balance and Interest accrued. I am just needing them to waive their fees. I spent over 90 minutes on the phone with them and talked to every department (BK, Foreclosure, Cust Service, Short Sale, Advocacy, Home Retention) and cannot get someone to actually listen and help.

I know that if I could reach someone intelligent that they would agree to reducing their fees by about $2,000 and to take the money and run, especially with the BK. Does anyone have any suggestions or contacts? I know that I could just turn my back, but it just seems rediculous to let the deal fall through when everyone could be happy with the outcome.

[Ditos]

This will be tough. It now is considered a short sale and will require lender approval which can take weeks or months to approve. I would try to call the Office of the President at BofA to accelerate the file and also file a complaint with the Office of the Controller of the Currency. Start with the Short Sale Customer Care number at 1.866.880.1232. Good luck!!

[tcreegan]

Hi Dustin,

...some pieces of the puzzle seem to be missing....

You're discharged, sounds like you didn't reaffirm, right?

I recieved and accepted an offer on the property. I can afford to pay...

Seems contradictory...is the offer from someone else or through you?

If the property is in foreclosure, the lender usually has a lawyer or firm assigned to handle the foreclosure. They will be listed in the documents you rec'd re. the foreclosure. I would start there and work upwards.

Good luck with this,

Tom in Colo

[dneil]

What about the mitigation department? Just a suggestion...

[DustinLH00]

Thank you everyone for your replies. The loan was discharged in CH7 and I did not reaffirm. They have sent the case to a Chicago attorney to foreclose on the property. I already spoke with the attorney's office and they refuse to talk to me because they are under contract with Bank of America. They did tell me that they had not yet actually filed the foreclosure, but were preparing to. They seemed completely unphased by the fact I had a buyer and closing date. Bank of America's mitigation department is their Home Retention Dept which is where I keep getting directed. That department handles the foreclosure cases.

Everyone I speak to over there is telling me that I need to do a short sale because I am needing to pay less than the payoff. I keep telling them that they are getting the entire principal balance and all accrued interest paid off. The only "loss" on their end is the fees they charged me and that they will end up getting 98% of the balance paid. I spoke to the short sale department and they cited a 45-90 day process. I asked if they had anything expedited when the house has been on the market for over 5 months with only one offer and that offer accepted with a closing date and they said no. They also informed me that the short sale process does nothing to prevent the foreclosure, so I could be 3 days away from a short sale approval and still lose the house in foreclosure. When I asked what was needed to start the process they stated a hardship letter and a bunch of financial documents (paystubs, tax returns, bank statements). I told them that I should not have to submit that documentation because I am not legally obligated to pay the loan at all and my BK is proof of my hardship. They didn't back down on that either.

I feel like I am basically stuck.

[tcreegan]

Hi Dustin,

My sympathies for dealing with a megaconglomocorp....

The problem is that the frontline employees follow a script, their job is to put the square peg in the square hole, round peg in the round hole. So when you show up with a triangular peg, the square peg dept tries to cram it in their square hole or they send you to the round peg dept which tries to cram it into the round hole.

And they are surprisingly resistant to kicking the problem upstairs where someone w/ real authority can make a decision. Corporate culture of not bothering the higher authority people? "Solve the problem yourself, don't bother me" syndrome, who knows.

Couple things I have done in the past: Get the right dept, in your case "home retention" and ask the frontline corporate drone "Who is the manager of the regional home retention department? I need their name and location of their office" If that doesn't work, go top down, find someone in the VP range off the corporate website, ring up their secretary and ask the same thing. You can even be a bit clever..."Oh, I'm sorry, I need the manager of your Home Retention department. Do you have their name and contact information?"

When you get to the middle level somewhere, ask point-blank if they have the authority to change mortgage terms. If not, ask who does.

Keep your identity vague, "I am working with a investor who is interested in one of your mortgaged properties"

Good luck with it, the megaconglomocorp can be a hard nut to crack, but it can be done...

Tom in Colo

[diesillady]

Thank you everyone for your replies. The loan was discharged in CH7 and I did not reaffirm. They have sent the case to a Chicago attorney to foreclose on the property. I already spoke with the attorney's office and they refuse to talk to me because they are under contract with Bank of America. They did tell me that they had not yet actually filed the foreclosure, but were preparing to. They seemed completely unphased by the fact I had a buyer and closing date. Bank of America's mitigation department is their Home Retention Dept which is where I keep getting directed. That department handles the foreclosure cases.

Everyone I speak to over there is telling me that I need to do a short sale because I am needing to pay less than the payoff. I keep telling them that they are getting the entire principal balance and all accrued interest paid off. The only "loss" on their end is the fees they charged me and that they will end up getting 98% of the balance paid. I spoke to the short sale department and they cited a 45-90 day process. I asked if they had anything expedited when the house has been on the market for over 5 months with only one offer and that offer accepted with a closing date and they said no. They also informed me that the short sale process does nothing to prevent the foreclosure, so I could be 3 days away from a short sale approval and still lose the house in foreclosure. When I asked what was needed to start the process they stated a hardship letter and a bunch of financial documents (paystubs, tax returns, bank statements). I told them that I should not have to submit that documentation because I am not legally obligated to pay the loan at all and my BK is proof of my hardship. They didn't back down on that either.

I feel like I am basically stuck.

Why are you trying to do the short sale you have no upside that I see, and you are willing to spend 2k to do this. If foreclosure happens the affect will be the same as if you accomplish the short sale.

[DustinLH00]

Why are you trying to do the short sale you have no upside that I see, and you are willing to spend 2k to do this. If foreclosure happens the affect will be the same as if you accomplish the short sale.

I am not willing to spend any money. I already told my realtor that it makes no sense to pay any money out of pocket on a debt that I am no longer legally obligated to pay back. I mean if there was like a couple hundred needed, I would probably do that, but not this amount. I am just trying to do the right thing. I have a buyer that wants the house and for a fair price. The appraisal and inspection are done, title has been ordered, the closing date is set. It is just foolish for them to not work with me and sell the house. I do not want to do a short sale, but they don't seem to allow any other suggestions.

[diesillady]

I am not willing to spend any money. I already told my realtor that it makes no sense to pay any money out of pocket on a debt that I am no longer legally obligated to pay back. I mean if there was like a couple hundred needed, I would probably do that, but not this amount. I am just trying to do the right thing. I have a buyer that wants the house and for a fair price. The appraisal and inspection are done, title has been ordered, the closing date is set. It is just foolish for them to not work with me and sell the house. I do not want to do a short sale, but they don't seem to allow any other suggestions.

I compliment you on the do the right thing attitude and if the bank does not cooperate then you have done all you can. Now if the buyers walks or try again when the bank takes the property then so be it. "

"Everyone I speak to over there is telling me that I need to do a short sale because I am needing to pay less than the payoff. I keep telling them that they are getting the entire principal balance and all accrued interest paid off. The only "loss" on their end is the fees they charged me and that they will end up getting 98% of the balance paid. I spoke to the short sale department and they cited a 45-90 day process. I asked if they had anything expedited when the house has been on the market for over 5 months with only one offer and that offer accepted with a closing date and they said no. They also informed me that the short sale process does nothing to prevent the foreclosure, so I could be 3 days away from a short sale approval and still lose the house in foreclosure."

How did you get so far into this process without the bank agreeing to the short sale price you went under contract at? You state "still lose the house to foreclosure" why does it matter you have no obligation at all. Foreclosure/short sale will still be recorded and have the same affect on you post a BK discharge. You still cant purchase another home for at least three years because of the BK.

[DustinLH00]

How did you get so far into this process without the bank agreeing to the short sale price you went under contract at? You state "still lose the house to foreclosure" why does it matter you have no obligation at all. Foreclosure/short sale will still be recorded and have the same affect on you post a BK discharge. You still cant purchase another home for at least three years because of the BK.

I never started a short sale process. I put the house on the market in June, stopped paying my mortgage after July's payment. I had 3 showings and got an offer at the end of November. I accepted the offer after my realtor and I crunched the numbers and figured we would break even at the offer given. I called BofA and told them I had an offer on the property and they said they couldn't put the foreclosure on hold. The figures my realtor used did not include the $1900 in fees that were reflected in the payoff ordered for closing. I am now trying to negotiate the fee waive so that closing can proceed as planned.

[tcreegan]

Hi again Dustin,

Just curious, you are going to a lot of trouble here...realtor or buyer is a friend?

Realtor I know suggested the buyer-realtor contact the lender w/ an offer to purchase the note. Just the note, not the property.

Any rate, I think you can go to bed and sleep easy knowing you have gone above and beyond the call of duty on this one...

Tom in Colo

[DustinLH00]

Hi again Dustin,

Just curious, you are going to a lot of trouble here...realtor or buyer is a friend?

Realtor I know suggested the buyer-realtor contact the lender w/ an offer to purchase the note. Just the note, not the property.

Any rate, I think you can go to bed and sleep easy knowing you have gone above and beyond the call of duty on this one...

Tom in Colo

No, not a relative or friend or anything. I know I should probably care less. It would just be nice to know I sold it instead of walked away from it and someone gets a house they want, I get it off of my hands, everyone is happy.

[diesillady]

Hi again Dustin,

Just curious, you are going to a lot of trouble here...realtor or buyer is a friend?

Realtor I know suggested the buyer-realtor contact the lender w/ an offer to purchase the note. Just the note, not the property.

Any rate, I think you can go to bed and sleep easy knowing you have gone above and beyond the call of duty on this one...

Tom in Colo

Well that's cats out of the bag. That's sure what it sound like to me but I felt it was better not to say it. I do know one friend who succeeding in selling to there brother and keeping the home. But he was 150k underwater and I think it was a good deal for him to do it that way. You say you are selling it for loan balance minus only $1900 in fees so you not even underwater. It's sure seem strange that B of A rather foreclose than accept the loan balance in full that's just stupid.

[free2breathe]

No, not a relative or friend or anything. I know I should probably care less. It would just be nice to know I sold it instead of walked away from it and someone gets a house they want, I get it off of my hands, everyone is happy.

On the back side of this, if the buyer REALLY wants the house, suggest that BofA is not cooperating, but that once they take the house back in foreclosure (not a huge chance of someone else buying it off the auction block) the bank will eventually have someone list the house as an REO at probably 2/3 of the price. You don't lose anything yourself, the buyer gets a better deal, and BofA gets the shaft. Just sayin' ;)

[helpmeout]

Well, I would just walk away if I were you. The bank isn't going to get the payout amount that they gave you if they had to sell it themselves. In fact, they may get even less than what the current contract is for.

You aren't stuck, the bank is. Just walk away.