I know the old saying “don’t shoot the messenger” but in this case, I’m hoping the messenger(s) can share this story to better your company.
We just closed a Short Sale that I have been working on for over a year. After all of my work in helping my sellers save their home, and their credit, from foreclosure, I was paid $0.00. Why you ask? Because of Bank of America sending “Approval Letters” that basically left me with no choice. The first HUD we sent to B of A showed a rough Net Proceeds of $154,000 with about $14,700 worth of closing costs. The first “Approval” letter we received requested a Net Proceeds of $159,500, problem was the closing costs stayed the same so this “Approval” required our sellers to bring $5,000 to closing, which wasn’t going to happen since they didn’t have that type of money in the bank.
The buyer was willing to wait for me to get a revised approval letter from you. After about a month of waiting we got another “Approval” letter, this time with a lower Net Proceeds. I was happy to be able to see the light at the end of the tunnel….Until we noticed that this version did not allow for the Seller to pay for $3600 of the Buyers closing costs and the 2nd lien holder to receive a pay off of $2,000 rather than the $3,000 that was previously approved. I knew that the buyer was not going to wait around while I tried to get a 3rd revision and knowing your policy of starting all the way back at step one if a file is closed, I knew I had to get this buyer to close on the house. I did not think B of A would continue to postpone the foreclosure date without another offer.
I told the sellers, the title company, and buyers agent that we would be able to get this closed and to start the closing process. Simultaneously, I tried to get another revision from B of A, knowing that the “revision” we needed would get me paid. I have yet to get word that a 3rd revision is coming….
Instead, the $4500 (plus $100 out of my pocket) in commission that I had coming my way went to paying the $3600 in buyers closing costs and $1000 to satisfy the 2nd Lien Holder. In such economic times as this I guess my only gratification is that the buyers agent made some money, the buyers lender made some money, the title company made some money, the inspector made some money, and the appraiser made some money. The sickening thing is that because you dropped your requested Net Proceed but just forgot to enter the $3600 towards buyers closing costs, B of A ended up receiving a $4,000 overage. Basically, B of A was paid MY COMMISION.
I, myself, have my home loan through B of A and this experience worries me to be affiliated with your company at all. As you might have guessed, I do not, and will not, do any personal banking with your company after this experience. Not only that, the buyer decided she could not trust your company and pulled over $200,000 of her business accounts out of your company. I am a real estate agent, I communicate with thousands of people a year and all of them have been hearing about my frustration dealing with your company. I hope your “Upper Management” understands what this department is doing to the entire Bank of America name. This type of story has been and will be spread and continue to lower your customer confidence. Your unacceptable performance dealing with these short sales is going to affect your entire business.
Kevin Schubel
RE/MAX equity group, inc
360-936-7277
Kevin.Schubel@gmail.com
www.TeamSchubel.com
