Bank of America's Irresponsible and Unacceptable Short Sale Practices Must Change

Well it is a catchy title. I know we all yearn for any improvements with Bank of America’s current short sale and mortgage modification track record. A track record that is abysmal and most certainly one of the worst in the industry. I recieve dozens of phone calls and emails from angry customers across the country complaining about Bank of America. All feel improsoned with inadequate and unacceptable response times on Bank of America short sales and mortgage modifications. Many buyers and sellers have put their lives on hold and live in turmoil while Bank of America literally watches the dust collect on thousands of files with little to no action for weeks or even months…or shuffles the paperwork from one negotiator to another with little to no progress on the file’s status. This is not how the customers were treated when Bank of America was writing the loans.

With 1 in 5 loans in Florida estimated to be with Bank of America, formerly Countrywide, it is clear that this issue has raised the eyebrows of a number of people in Florida that can prompt change or at least raise the issue up to the executive ranks at the nation’s largest lenders .

Today, Tuesday November 17th, Attorney General McCollum sent a letter to the Florida Executives of Bank of America, JP Morgan/Chase, Wells Fargo and Wachovia. He called upon the executives to provide homeowners with a fair and efficient loan modification process. To help solve the crisis he requested the executives to meet with him and discuss the bank’s responsibility to make immediate and necessary changes.

Whether this letter will create any action from the executives remains to be seen. It is clear however, that the issue will not be buried or swept under the rug. Too many homeowners, home buyers and industry professionals are impacted by this crisis and their demands for change can be heard loud and clear across the country.

In McCollum’s letter he states Florida borrowers are:

·         Placed on hold for excessive periods when calling for help

·         Forced to speak to unknowledgeable representatives

·         Transferred from department to department and person to person

·         Forced to submit identical paperwork again and again

·         Provided no avenue or recourse for complaints

·         Never informed  about the status of their loan modifications

Bill McCollum says these practices are “irresponsible and unacceptable”.

These are all the same issues affecting the processing of short sales. Any positive change to the processes and procedures for short sales and mortgage modifications would be welcomed with open arms.

You can read Bill McCollum’s letter to Bank of America by clicking HERE.

If you are a troubled homeowner, or have a family member or friend facing foreclosure, please give us a call for a confidential consultation about the possibility of a short sale.  Tracy Baranowski at 850.259.4270 or Craig Baranowski at 850.259.1788 or email  us @ info@teambaranowski.com. Team Baranowski has a 100% success rate for all of our short sales for 2009!

Bank of America formerly Countrywide short sale process streamlined?

Update: Bank of America Positive Changes to Their Short Sale Program

Countrywide was one of the largest home loan providers in the United States, as a result they have been overwhelmed with a staggering number of foreclosures and short sales. During the last twelve months they have received a large amount of bad press and has earned a bad reputation for taking an excessively long time to process a short sale. In some cases Countrywide has taken as long as 8 to 9 months to approve a short sale. In the process the seller get discouraged, buyers walk from the transaction and Realtors lose faith in a system that seems fundamentally broken. Bank of America’s purchase of Countrywide appears to have only exacerbated the problem.

In recent months we have seen and heard of talks about a streamlined short sale process and incentives being put in place by the Obama Administration under the Making Home Affordable Program. This program is targeting to prevent homeowners from foreclosure with alternative options including mortgage modifications, short sales and deed of lieu of foreclosures. You can read more about the program here.

We have yet to experience any tangible changes to Bank of America’s short sale process however, this letter to one of our customers is a sign that they are acknowledging and trying to define a standardized short sale process. In this letter Bank of America is expecting the short sale process to take 30-40 days to complete. If the loan was sold to an investor it will take an additional 20 days to process. This would make the entire process from start to finish 60 days. Our experience with dozens of  Bank of America – Countrywide short sales has been anywhere from 3 months to 6 months.

If we could get close to a 30-40 day turn around on short sales with Bank of America it would be almost magical and welcome any changes to improve the process. Click here to view the letter from Bank of America.