Anyone doing Bank of America Cooperative short sale program?

[tradinglife]

Filed chpt 7 April 2010 (including home), had 220k first mortgage thru BOA, 55k second thru Citi. Moved out of home in August 2010, Chpt 7 discharged October 2010. House is vacant currently, guessing value is 230-240k. Third party company (says they work for BOA) is calling me about Cooperative short sale program, saying I can pick a realtor who has 120 days to sell house, if they do sell, I will avoid foreclosure and get $2500 for my trouble. If not sell in that time frame, will still be paid $2500 to do deed in lieu. I just assumed the house would still sit empty for years till they foreclosed. My attorney didn't think a short sale or deed in lieu would help us ( looking back now i think that was bad information) We would like to buy another house when we can, and these 2 options may be better on our credit, sounds like we have nothing to lose buy trying this. Any experience with this, or any advice? Thanks!

[Drazil65]

We had started out early this year in that program and were about 3 months into it when BOA sold our 2nd to SLS (BOA originally held the 1st and 2nd). Once it was sold BOA informed us we no longer qualify for the Co-Op Short sale program becasue SLS does not participate in that program (thank you BOA for selling to a company that does not participate in your own program). So then we switched over to the regular short sale program. Once the house (actually a rental out of state) was on the market for 90 days I called BOA DIL department to ask if we could pursue a DIL. So they started on the paperwork for that and told me that if we get a short sale offer we would have to withdraw from the DIL program. Also, if the DIL went to closing first then we would have to withdraw right before that from the short sale program.

We were about a month away from DIL closing and they were negotiating with the 2nd Mtg people to settle 2nd and husband filed chp 7. This stopped everything so DIL people said contact them when we are discharged to continue. We have had the house in the short sale program for 6 months with no offers (too much inventory) so we are officially withdrawing it from the short sale program on 12/31 and will only pursue the DIL.

My suggestion would be to go into the short sale program for the required time and then pursue the DIL (and you will have to stay on top of it to move it). Be aware with any BOA program, they are masters at stalling and "losing paperwork" as well as forwarding stuff to people and departments constantly. Keep a journal of every piece of paper you send (especially emailed or faxed) and to whom and when. Followup constantly or you could find yourself starting the time clock over once or twice because of their mistakes. There is alot of paperwork and hoops so get ready to jump and jump and jump...Good Luck

[keepsmiling]

Anyone else find BoA/Short Sale/ CO-OPERATIVE
an oxymoron?

[justbroke]

Yes, they used the word cooperate in a sentence!

[sh1035]

I signed up for the deed in Lieu program and was told should be a breeze and I would rec 3k.......they sold it at auction 2 weeks later.

Of course I was told they would halt all that, etc. But since it was a vacant rental I did not fight it. Figure one day when they go after Countrywide/BOA again I might get something.

Had 2 condos with BOA and PEC and they lingered with no payment for 2 years. However, both went to auction this Dec 2011. My house with Chase after 2 years just shows
10/4 New Council assigned.

[lucy58]

Filed for chapter 7 and discharged August 2010 been in the house since without making mortgage payments. We were contacted by realtors in November and they wanted us to do a short sale...we refused! Later that month a woman from DTS contacted us and said BAC would be willing to do a short sale and pay us 20,000! We are obviously skeptical but according to the Realtor and my attorney if the final numbers come back and the bank tries to wiggle out of the payment we can stop the whole process. Current have Remax actively marketing the house and just got an offer and it's been submitted to BAC. Supposedly we should get a response in two weeks. This is a new program called a Cooperative Short Sale! We signed the papers and they agreed in writing to give us 20k. The representative from DTS says they would rather we stay in the house because many foreclosed homes are being ransacked and gutted and it ends up costing the bank more money!

[tradinglife]

Thanks for the comments, still waiting for my attorney to look over deal before I submit.

[dspii]

Bank of America..........a true representation of too big to operate. But.... a short sale can be a strategy towards a new mortgage sooner than just walking away from your home.

It took me 9 months to weave my way through their short sale process, and yes, they loose paperwork. They tried to run me through everyone of their "programs" including HAMP, co-op and finally traditional (a traditional short sale?). I only chose the short sale to reduce the closing time and increase my chances of getting another mortgage sooner. Unless they pay you big bucks or you can do without "owning" your own home, a short sale has limited benefits, even agents and believe me, the banks make them earn every cent....not easy money for anyone.

2 years from BK discharge, I would be eligible for an FHA mortgage......add a foreclosure and you add 3 years from the deed transfer date, public record, easy to find. A short sale it says.......Borrowers in default on their mortgage at the time of the short sale (or pre-foreclosure sale) are not eligible for a new FHA-insured mortgage for three years from the date of the pre-foreclosure sale (short sale). Obviously this is quicker than a foreclosure and offers an interesting strategy. Our debts including mortgages were wiped out by the BK, and according to the law (lawyers, feel free to comment) B of A cannot report my payments, or lack of, to anyone or risk being in violation of the discharge order.

I have talked to a couple local lawyers, they believe it might hold water, although I have yet to hire one to navigate the process. The one set back is, FHA requires 12 months of rent or mortgage payment receipts....I have a couple months to go. I'll post the outcome, I believe and hope the strategy works......I hate paying rent.

I had two choices........foreclose or short sale, I moved 2500 miles across the country for a job, my options were limited, a short sale reduced the deed transfer timeframe.

[tradinglife]

Attorney thinks it is not worth trouble, I think he has not kept up with the current housing situation enough to really understand it, I am still researching it at this time.

[tradinglife]

Think we have decided to let the foreclsure proceed and not pursue the short sale or deed in liue, it sound like many years before we will be able to get a mortgage anyway, what's the point. Just very frustrated right now, BK is supposed to be a fresh start, now we hear it will be 3 or more years after foreclosure before we can get another mortgage, wow. A lot of people are in our shoes, may be years before housing market goes up again with so many people unable to buy till foreclosure timeline.