Bank of America Changing their Rules Again

And yes, BofA I have heard is always a problem!

The majority of BOA properties are Fannie Mae backed mortgages and their deed restrictions are 3 months & have been that way for years. Recently BOA stated they were going to cut short sale approval down to 30 days ... of course this is a "pipe dream"; I have one short sale offer that was placed in March & BOA has had the REA give me "arms length transaction" paperwork 3 times to sign.
As for pre-foreclosure; that does not apply because if the homeowner has
equity he/she can sell at any time & the mortgage & any delinquent payments would be paid at time of sale.

You make a good point. It's kind of ridiculous. They think they are too big to fail. When they get free money, they're not as motivated to sell. It just means this is all going to bottom out even worse in the end.

Marc

I have a feeling they are playing the market right now. With the economic unrest they are trying to inflate the prices of properties right now. They and fannie mae own most of the market right now, so they are calling the shots.

If they can bring the prices up on each foreclosure sold, then they would bring more money into the future homes they sell which means more money back into their pocket. But all the other banks follow suite, that is the problem. so now they are able to ask the same price as retail homes, and then it pushes out the investor.

Also I feel there is a shortage right now in properties. They are holding onto their inventory to bring the prices up. Then they will release them and start selling them at a higher price.

Now this isn't fact, but this is my suspicion. we will see as the market turns

The bank always makes the rules! that is not know by any means. If you don't care to play with the big banks go to the smaller local banks and credit unions.

They are typically more flexible and easier to work with. Nothing like the home town boys.

BofA as we know is one of the worse to play with. I think they just like playing with investors, of course Wells Fargo plays hardball as well.

I t looks like the 90 hold is going to be around for awhile and we just have to deal with it for now.

Randy Bailiff
Dean Graziosi Investment and Life Coach

t

I just closed a deal last week that was a B of A short sale that I put in the name on an LLC that I wasn't using for anything and I simply sold the LLC to the end buyer for what my assignment fee would have been. Now the end buyer will have to wait the 60 days for the deed to season, but that didn't stop me from getting paid. Worked like a charm!

Cheers,

D

Good for you, David!
Sounds like that's the way to play ball with BofA...hehheh.
Happy NEW Year!

I am still waiting for my TARP check? The banks got theirs. Same old game and same old players...Jan

Here is what you do to get around the deed restriction...

1. Once your offer is accepted on an REO property have the purchase agreement drawn up in your name (or your LLC). Make sure the contract is endorsed by both you and the bank before you present the property to your buyer.

2. Once you have your property under contract with the bank and you have your end buyer lined up have your agent draw up an “addendum” to your purchase contract that states you will be adding an additional buyer onto the purchase agreement. Once the Addendum is drawn up it must be signed by you and the bank. When explaining the need for the addendum to your Agent simply tell them that you must bring in an additional funding partner for the property and that their name must be on the Title as well.

3. On the day of closing your buyer will bring 2 certified checks. One for the property purchase and one for your wholesale fee. Immediately after closing on the property a “Quitclaim Deed” will be drawn up removing your name from the title. Your buyer then gives you the check for your fee in exchange for the Quitclaim deed.

This is a very simple strategy to wholesale REOs and even Short Sales. As I said I like this strategy because unlike simultaneous closing and double closing there is only one set of closing costs to pay.

BoA has had a house sitting empty for 4-5 years in my neighborhood and when called, they said they were not marketing it and to call a realtor, no realtor had a listing - so clueless...

Yes, I just closed on a BOA last week and it is a 60 day holding period. Like you said, i will do a fix and flip so the holding period doesn't bother me.

Ryan

WE just have to Learn HOW to play their game and win.

BRILLIANT!

Thanks, and best wishes for 2013,
Patty

We just closed a deal with Fannie Mae and it was terribly painful. In the beginning they refused to let me close at my title company, but they have verbage that allow the buyer to choose.So we had to fight but I did win. The other agent didn't help at all either.

They got upset when they found our it was private funds. Our lender had to wired funds outside of title and then we brought funds into title in the our buyers name, which was risky. This was because thier words "if we even get wind that this is not all "CASH" we will kill the deal." They refused to accept any addendum adding the wife on title or have any change in the name at all. Our title co. mistakenly added a middle initial and they informed us if you add his initial, we will not close the deal!

It was a nightmare. If your broker isn't familiar with working with the banks... be careful.