Banks Making Foreclosure Purchase Difficult
Click the post title above to watch today’s video! Catch all your real estate news and mortgage news with Frank Garay and Brian Stevens here at www.TBWSDailyShow.com!
E-Mail Subscribe
May 31, 2013
June 5-6, 2013
I have not been able to get a hold of anyone there either.
Have you had any luck?
I had this situation with Bank of America and USDA. What happened is the client went thru the pre-approval process with B of A and told them flat out that he would not be using them as a lender. Then we did the loan application thru my company. Not sure if it would have worked as client decided to not go thru with the loan as the house had too many repairs but it started out okay. Of course B of A tried to steal said client from me but it didn’t work.
)
I tried to respond to this yesterday but it didnt go thru …You are absolutely right in what you are saying ….Try giving a pre-approval(pre-qual) letter on a HUD repo…..Their cannot be any contingincies except appraisal ,updated title and executed documents….CMON ….Why dont they just say we want an approval before we accept the offer…I personally think this goes back to red lining …. That is a violation of HOEPA among other things…..Their are so many things that make this job frustrating and difficult without the banks holding REO’s making it worse..And as a Broker do you think I am going to give a pre-approval on something that isnt going to get done??? Why would I waste my time!!!
[...] The TBWS Daily Show Trackback: Natural Sleeping Aids [...]
As an REO agent (and my company closed out over 400 last year in our market area) the pre-qual letter is REQUESTED. Anyone can still submit an offer and if not it is the LISTING AGENT that is not adhering to the bank’s directive. HOWEVER, the bank is the SELLER and the SELLER has the right to accept or reject the terms under which they will sign a contract just like any SELLER. The SELLER also has the right to decide whether or not they will pay any closing costs and also has the right to decide under what terms or conditions. I have had homeowners who will not do an FHA. That is their perrogative just as it is the owner of ANY property whether it is a bank or not to offer terms on a contract. Obviously, it is an opportunity for business for the holder of the REO but it is also a safeguard as stated from Ms. Henderson that way too often pre-quals are done poorly with no thought, no regard to the specific property and the buyer couldn’t close a doghouse let alone a house. So, the pre-qual request serves two purposes. Also, BOA, will accept anyone’s pre-qual but they WILL NOT honor the financing contingency if the buyer has no pre-qual from BOA. Any REO listing agent that tells you any different is not adhering to BOA guidelines. If you feel the listing agent is making unreasonable demands then complain to the bank and help remove them from the industry. They have no business layering the criteria to submit an offer and blaming it on the asset mangement to make their job easier! No bank requires anyone to do a pre-qual on a cash offer. That is the listing agent, not the bank.
Builders cannot & do not FORCE buyer’s to use their lender. However, most builder’s have a preferred lender, who is proven to get the job done, and close on time! That is one of the most important reasons for a buyer to elect to use the preferred lender, and incentives are sometimes given. Everybody wins. I can’t tell you how many costly delayed closings have been caused by the BIG Banks.
[...] The TBWS Daily Show Trackback: Health Diagnose Posted in Home Herbal colon cleansing diet | Tags: Benefits, Cleanse, Colon, Colonic.Net, LIBBE, Tips [...]
I had a client that could not get approved through BofA, but we submitted the underwriter approval with the offer, and they got their offer accepted.
What….another stupid move from Bank of America??? Lets just add it to the very long list of stupid stuff. Don’t get me started on the stupid moves they make with short sales! From what I understand, they can do USDA but their HUGE electronic system cannot produce a USDA approval- HUH?
boomer sooner!
You are so correct!!! Why do our clients have to pre-approve with different banks when we have a pre-qual letter? I had one client that was making offers and had a pre-qual in hand…and still had to call and pre-qualify with 3 different banks??!! Then…we didn’t get any of the offers.
Here is a thought banks…..within 48 hours of the offer being accepted, the client has to qualify with your bank? I still think they shouldn’t have to, but that at least would help a little bit. C’mon banks, get your head out of the sand and HELP people buy homes. Another way is quit this 15 days on the market owner occupied or now they have 30 days on the market owner-occupied offers only, then investors. That is so stupid! Let whomever buy the stinkin house and get it cleaned up and people living in it.
Bad info guys!
You CAN also submit a BofA loan DENIAL letter along with the buyer’s approval letter from another bank/program.
This is acceptable and I’ve had several offers be accepted this way.
I have to give you heads up…I’ve worked with the company that’s offering the \Free Workshop\ (LeadRush), and am paying for the service. And because Frank and Brian endorse it, I decided to take a look. I can only say that I’ve attempted to get in touch with them many times about assistance, and now even trying to cancel my service, but NO ONE is getting back in touch with me, and the automated system keeps charging my account. So you may not want to endorse a company (LeadRush) on your blog. Maybe you can help me get in touch with them, I’m not having any luck. Thanks!
Issue finally resolved. They’re going to look into their system to see if somethings up. Since I sent them a note again this morning, I finally got response from them, and they assisted canceling the service. Thank you for your help, it’s much appreciated!
This is another one of Chad Weber’s schemes and seems to be his MO. I subscribed to one of his “automated” marketing systems about two years ago and tried to cancel six months later.
Sent numerous emails to his many email addresses to cease and decist, but still being charged monthly. Next step is the credit card company.
By the way, Doren Aldana is another one. He actually changes accounts to keep charging even after the credit company shut him down.
As far as I’m concerned, most of them (there are a select few good ones) are nothing more than snake oil salesmen who hang on like leaches once they get a hold of you.
I’m a listing agent who lists REOs. There are many mortgage lenders who will write an approval letter for ANYONE–regardless of the chances of actually closing the loan. I can’t tell you how many times we get down to closing only to find out the buyer can’t qualify. I require the buyer be pre-approved by any one of several lenders I work with regularly before I will accept an offer. If they’ve pulled their loan papperwork together for their lender, it shouldn’t be that big of deal to let another lender look at it. However, the buyer can choose to go with whatever lender they want (after I have the pre-approval) and our buyer concessions are NOT dependent on what lender the buyer chooses.
You got your facts wrong. If BOA does not have the loan program you can still submit the offer without a BOA lender letter.
Wrong, at least in my experience. One of the houses I bought last year was a B of A foreclosure and as usual I sent a pre-approval letter from my hard money lender along with my offer. They would not accept that or any other pre-approval letter from anyone other than B of A. I’ve since then passed on several opportunities to buy B of A properties.
Last week I talked to an investor that got turned down with a cash offer, yes…a cash buyer got turned down because he didn’t have a pre-approval letter.
What are these people thinking? Oh yea, they’re not thinking at all.
That is the listing agent’s b.s. it is not BOA guidelines. Complain.
Let me think…the bank who failed at accurately pre-qualifying a buyer has now had to foreclose on said loan and now they want to muck up the process by trying to pre-qualify my buyer who has been pre-qualified with someone with a brain. Hmmm…
Not mentioned is the fact that every credit inquiry has a downward effect on the buyer’s credit score. This could be disastrous for marginal buyers.
Banks have been called on this issue not only due to RESPA but state consumer laws. It’s called coersion. BOA also doesn’t seem to want to sell short sales as they won’t let any one who is related to anyone working for BOA or one of it’s vendors by a short sale or REO. Really? Let’s see, too big to fail controls 27% of all real estate. How many employees does BOA have, add in all their relatives or previous spouses, etc. Now realize most mitigation and foreclosure departments, etc. are all outsourced and you’ve taken out a whole heck of a lot of potential buyers. Sounds like they want to rule America also sounds like they want to foreclose rather than get a viable short sale off the books.
NationStar recently tried to state the potential buyer of a short sale needed to be prequaled by them for the short sale. One of the attorneys I work for shot off a letter noting anti-coersion laws, programs different amongst lenders and they had a viable pre-approval. that was the end of that. Short sale approval granted and the deal closed.
BTW – while builders got away with their little seller concessions but in the past banks have lost in the courts on the very same issues. I think the buyer’s, esp. in judicial states, need to bring an attorney letter with them regarding these issues. Forcing who lends on a home is no different than the old days of forcing the lenders home insurer on people – found to break anti-coersion laws – forcing people to buy unemployment insurances and other death benefits and the like. Given BOA services HUD loans, I suspect someone should also notify HUD of these issues since EOA and a few other regulations cover these grievous acts.
And if they are not going with BoA the loan officer is not going to push to provide the preapproval because he and his office is so busy.
I have worked with a borrower for a few months getting her preapproved. She has found a house that she wants to buy and it is owned by Chase. In her offer she paid $8000 over asking price and asked the seller to pay 3% concessions to help her with closing costs. Chase said they will only pay the 3% concessions if she gets her mortgage from Chase. The listing agent is telling me that this is an incentive and is allowed. Not just a preapproval but she has to get her mortgage from Chase. How is this legal?
Cheryl, as slimey as it seems, that is allowed- IF if is fully disclosed as such in the offering information. ‘”Seller will pay 3% towards closing costs! Ask Listing Agent for details!” is all it would take. If it’s not disclosed in the MLS info, you may have an argument you could push.
Perhaps not so different from builders who have forced buyers to THEIR owned lenders and title companies for many years. Apparently nothing wrong with it, but we all know there is SOMETHING WRONG WITH IT.
They shouldn’t be allowed to force pre-qualification with them anyway. Providing financials is one thing, but forcing a process that is essentially a loan application shouldn’t be allowed. I don’t know how they get away with it since we have that little thing called RESPA.
I thought this was funny since you spoke about BOA:
http://www.yourbofa.com/#
Hilarious!! Thanks for sharing.