B of A unethical?

[Chook-A-Holic]

About 2yrs ago the DW and I bought a nice piece of property in the mountains to later retire to. We were the lowest bidders but got the property. Want to know what set us apart from the other 9 bids? We had cash and were ready to close immediately. We got the property for $200,000 less than the original loan amount. I wasn't going to borrow any money, so I bid with what I had. The property is now rented as a vacation get-a-way until we decide to move into it. I imagine most banks want it gone and to be done with it.

 

[chickened]

You would have to see the details of the foreclosure, sometimes banks are forbidden to disclose info on a house or are ordered to do things a certain way by say a bankruptcy court. Without these answers it is really hard to say. Could just be bad credit or the bank did not feel good about the deal. Income to debt ratio is a bank's way out legally.

 

[debilorrah]

Quote:
He was pre-approved for $180K and he makes $85k a year. No debt as he lived out of the country until 2 years ago.

 

[chickened]

I have 700 plus credit scores, had 20% down tried to borrow$ 24,000.00 from my own bank and was told no. Ended up getting it from a private source. Screw them banks!! I think they should try private sources and put the banks out of the lending business.

 

[Sonoran Silkies]

In a short sale, all parties that are owed money must approve the sale, and that they will be accepting the offer and agreeing to not pursue the monies that are owed. In a foreclosure, the original purchaser is still responsible for the amount that the sale does not cover. So, let's say the loan was for $250K, a short sale offer of $180K still leaves $70K in debt that the lenders agree to write off. In a foreclosure, the original purchaser is often not relieved of the deficiency, and will still owe that extra money. So the bank loses nothing. $120K from the new purchaser and $130K still owed by the original purchaser. Whether or not the deficiency remains depends on the exact agreement in the original mortgage (that was foreclosed) along with state or federal laws that may limit deficiencies.

 

[Chook-A-Holic]

Quote:
Very well stated. It also gets really interesting when the original purchaser walks away from the property/loan and disappears off the face of the earth. This is what happened with the property we bought. A court order was also involved but I wasn't allowed any details.

 

[Lazy J Farms Feed & Hay]

I don't think unethical is the proper decsription. I think it is more incompetence than anything.

 

[Sierra pachie bars]

We saw that often when we were trying to buy a new house. Saw a lot of unethical things. Sadly. B of A owned the home we did buy. They played alot of games. Sat on our offer for almost two months. finally they called us. I would be willing to be realtors did something. We had one offer us a house if we offered what he wanted the house was ours and would never get listed. We passed.

 

[Sonoran Silkies]

One other thing is that everyone with a financial interest in the property must agree on a short sale. In our association, a property was up for short sale--the owners were behind on their assessments. The bank had a purchaser--The first mortgge was losing very little, the 2nd mortgage was being paid in full, realtors were getting a full 7%, while we were getting virtually none of the back assessments. By law HOA assessments come before second mortgages. We said "no" and the deal could not go through--even though the bank wanted it to.

 

[redhen]

What exactly IS a short sale??