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« Avoid 3 Dangers In House Flipping | Home | Solutions To Prevent A Foreclosure »

ETrade Should Not Be Present In The Mortgage Industry

By Vic Hurlstorm | August 16, 2010

Short Sale Power Hour

Forgettable Friday revolves around Bank of America another time today. We’d love 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 fans and we need to give some acknowledgment to the team at Bank of America on this particular file for trying to locate a resolution.

Let’s establish two things very quickly. The business that you pay your mortgage to each month is called the servicer. The company that owns the loan or has a financial interest in it is referred to as the investor.

Both loans in this scenario are serviced by Bank of America. The original loan has Bank of New York as an investor. The second loan is owned by eTrade. They are into the mortgage industry, i guess.

With an offer of $125,000 and a BPO that was about exactly the same, this offer was a no-brainer. The first lender approved the deal. The second lender denied it. They were due about $30,000 and offered $3,000, receiving 10%. They demanded $10,000 and then relented and thought that they would agree to $9,000. That was their last offer.

The difficulty is, if foreclosure happens, they get zilch. The original investor decided that they could provide eTrade $6,000 and still come out ahead of foreclosure.

Lots 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 actually attempted to get this deal completed. Hopefully, that transaction will get completed 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 visitor on Shortsalepowerhour.com. He can communicate some great information with the short sale community.

Short sale FAQs and more.

Get powered up by Kevin and Fred at Short Sale Power Hour by the Short Sale Specialists of Arizona

Topics: foreclosures | No Comments »

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