Wednesday, February 16, 2011

BofA has figured out a new way to torture short sale buyers

Honestly, Bank of America must have a department of weasels who stay up all night figuring out new ways to stab clients and potential buyers in the back.  Here's the latest from a short sale I'm involved with in Toluca Lake (I represent the potential buyer, who wants to pay all cash): BofA will no longer take equities (stock funds, etc.) as proof of funds to complete your purchase.  So now, if you send, say, your Morgan Stanley monthly statement with your offer to show you have the money to complete the short sale transaction, that won't be good enough.  BofA wants you to liquidate those funds and put them in a cash account, even though they haven't approved the transaction yet.  Or else, you can come up with a pre-approval letter from a lender stating that you have liquid funds to close. No word on whether they want you to liquidate your 401K in advance of approval.  What next from Darth Vader BofA?
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4 comments:

  1. T.M.11:19 AM

    I had a similar experience with a prop and W.F. not that long ago. Mind you, there was 5 times the amount of funds in the stock portfolio then required for the cash purchase. The market could have tanked overnight by 50% and I still would have had 2.5 times funds required. The kicker is, they would have accepted the stock portfolio for a LOAN for 30% down.

    Hope you find a way around this, and get your deal. :)

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  2. sfvrealestate2:17 PM

    Thanks, TM. What are these banks thinking?

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  3. Reno Short Sale Expert7:06 PM

    Wow, never heard of this before: "BofA will no longer take equities (stock funds, etc.) as proof of funds to complete your purchase. "

    I'm really sorry to hear Judy, any alternatives?

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  4. Anonymous2:48 PM

    We had WellFargo demand the bank statement to show funds. The buyer just moved the funds and they will only take a bank statement not a computer print out. They want it now! but his next statement does print tell next week. Just stupid, what are they really trying to accomplish?

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