Bank of America Experiencing a Short Sale Backlash?

I found this very interesting blog post the other day which included a transcript of an email that is floating around on the web – essentially a petition for Bank of America to improve its processes and make the short sales process better for all involved.

Here is a direct cut from the email:

It’s crazy. Agents are Bank of America’s biggest customer. But they treat us like dirt on short sales. It’s like we don’t matter to them at all. However, we do matter and a whole lot more than they realize. Did you know that their mortgage division is one of their largest profit generators? That means when you send them a buyer, you’re actually helping them make more money. Why are we helping them out by sending them our customers?

Let’s simply stop sending them business. Hey, we all know they’re making money! They have enough in the bank to pay Ken Lewis seventy-one million in retirement bonuses. And now they’re paying out forty-five billion to the feds so they can hire on a new CEO. Maybe they could use that to hire on more staff to negotiate short sales. Nope! Getting a new CEO is more important than taking care of their most important customers.

Here’s the scary data. We all know that short sales save money. One study showed a 20% higher net on a short sale versus an REO. That’s a lot of money! On a $150,000 mortgage, that means a savings of $30,000. This is their Achilles heel But, they aren’t taking the losses personally. No wonder they don’t want to hire on more staff. But, it costs Uncle Sam. Let me explain.

I remember reading somewhere that 45% of BOA’s loans were owned by Uncle Sam, thru Freddie Mac or Fannie Mae. When we show the American Public that BOA is costing Uncle Sam and the taxpayers tons of money, they will be outraged. So, join me in telling them how we feel and help me get the word out on this atrocity. We can get them to hire on more staff and do a better job on the short sales. But, I need your help.

Go to my site, http://www.SSAgentAdvocate.com and sign up to stop sending your buyer’s loans to them. Do your part to help make short sales work so everyone benefits.

Sincerely,

Ben & Chris Curry – We work at KW in Gainesville, Florida

P.S. Don’t think BOA’s CEO, Ken Lewis, cares about agents. And don’t think that REOtrans is going to solve the problem either. No amount of technology is going to change the fundamental problem. They don’t have enough staff. How can negotiators even think straight when they’ve got 400 files on their desk? Would you?

REOtrans is like putting a band-aid on, when you lost your leg. Rather than take care of their most important customers, BOA think they have more important things to do. What do they consider more important than treating agents with respect? It’s paying their departing CEO seventy-one million in retirement pay and forty-five billion to the feds. Why don’t they use that money to improve their short sales?

If you think that’s outrageous, then pledge your help at http://www.SSAgentAdvocate.com .

P.P.S. Forward this e-mail to your friends. Let’s get everyone we know on board. Then, we can actually get them to change their policies. Here’s a story from one broker whose buyer got lied to by them.

“I just had the worst experience as a broker in the twenty years of selling RE. The local BOA prequalified a client of mine and gave her a prequal letter saying she was qualified for a $105,000 mortgage. I was concerned with her going to BOA and was skeptical about them qualifying her because she had her own business and did not show a lot of income, but she had a good bit of money in their bank and I screwed up and trusted them. I tried to get her to check with another lender with no success.

Long story short, after BOA made her pay off her car, transfer money out of CDs, having the loan processor go on vacation the day before closing without telling anyone. The final loan approval guy calls one week after the closing date to say that the Buyers ratios are over 30 points off!

I am not a mortgage broker but even I know that the first thing you check is credit and the second thing is Dept to income ratios.

The moron’s they have working for BOA allowed this poor lady to go through the expense and hassle of their loan process with Dept to income ratios that where nowhere close to being where they need to be.

They had the nerve to call her a week later to ask for a $400 fee they say she owes them for the loan process. Worst experience with a lender in 20 YEARS!” Paul.

Pledge to stop your sending your buyer loans to them here http://www.SSAgentAdvocate.com .

Sent By: Ben & Chris Curry P.O. Box 2287, Lake City FL 32056.

The website it directs users to basically lists out a set of “demands” that they would like addressed. Some of these are parallel to the recently released HAMP regulations for short sales but there are some new ones as well.
There are a couple of interesting comments that sparked from this post:

• Some commentators say that this “whining” is unproductive and that all banks are like this
• Some commentators mentioned REOTrans as actually slowing down the process

All in all an interesting email. It’s very fascinating to witness the frustration many have with Bank of America manifest itself in this email which surely inspires a strong conversation

What do you think? Is there a backlash? How will HAMP affect the complaints against Bank of America? How can Bank of America improve their process? And, if you have any tips on dealing with Bank of America (or any other lenders!), what are they? Post your comments below!