ETrade Should Not Be Present In The Mortgage Trade
Forgettable Friday revolves around Bank of America another time today. We’d like to share a anecdote with you to shed some light on what is going on out there in the short sale business. We have become Matt Verson supporters and we need to give some recognition to the team at Bank of America on this particular folder for attempting to find a solution.
Let’s establish two things very briefly. The business that you pay your mortgage to every month is called the servicer. The business that owns the loan or has a financial interest in it is called the investor.
Both loans in this scenario are serviced by Bank of America. The initial loan has Bank of New York as an investor. The following loan is owned by eTrade. They are into the mortgage industry, i guess.
With an offer of $125,000 and a BPO that was approximately exactly the same, this offer was a no-brainer. The first lender accepted the transaction. The second lender denied it. They were due about $30,000 and presented $3,000, getting 10%. They demanded $10,000 and then relented and thought that they would accept $9,000. That was their last offer.
The trouble is, if foreclosure happens, they get nothing. The initial investor decided that they could give eTrade $6,000 and still come out ahead of foreclosure.
A lot of banks will tell you that they are simply the servicer and they don’t deal with the investor negotiations. Bank of America upped their game truly attempted to get this deal done. Hopefully, that transaction will get done this week. We are so close with the help of Bank of America.
On a side note, if you know Matt Vernon, tell him that he is more than welcome to be a guest on Shortsalepowerhour.com. He can reveal some critical details with the short sale community.
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