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Lesson number one: Don’t underestimate the other guy’s greed! – Frank Lopez, Scarface

September 24, 2009

Bank of America - Don't Understimate The Other Guy's Greed

It’s funny how the front end of Bank of America, originally Bank of Italy,  is all pretty customer service – we love you we want you – then on the back end they  employ folks that make loan sharks look generous!

I have been negotiating a short sale for my clients for 5 months. They are good people, they lost their income and are trying to sell their house to make things right.  It’s tough times for a lot of people but I still see goodness in people that have been knocked to their knees.

Bank of America held the second – a non performing underwater second of no value – that they could never give a payoff on and then recently sent to real time resolutions – their collections arm.

I’ve worked with many, many banks – it seems like I’ve done only short sales for the last 3 years – and they all have the same process. Fax over the info and we’ll work with you.  Real time resolutions is no different. They asked for my clients’ personal financials, property value information, etc. We had sent over the initial HUD1 with a generous $4K as a payoff to realtime/Bank of America. $4K is a lot of money for a note that’s not had a payment for 26 months and has underlying security that is worth $150K less than the first loan – remember Bank of America holds the second so, they get paid after the first is paid off. Most banks will sign off on something like this for $1,000 to $2500. But, we’ve been working this for a long time and I just wanted to close this so my client can move on.

After 4 weeks of reviewing financials, analyzing the security, etc., They are asked for $30,437 for a full release. $30,437! For a second with no value, on a a property that is worth over $300,000 LESS than the current lien balances owed!

We’ve since sent in an offer at $6250 which was immediately returned. Rejected by the “investor”.  The guy I am working with Grant Mones,, suggested I throw in 1/3 of the real estate commission and not give the buyer the home warranty so they could have that $450 and that “might work”.

I guess you don’t get to be the “leading financial institution” without strong-arming a few customers… and Realtors!

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