ETrade Ought To Not Exist In The Mortgage Industry
Forgettable Friday revolves around Bank of America once more today. We’d love to share a narrative with you to shed some light on what is going on out there in the short sale industry. We have become Matt Verson fans and we have to give some acknowledgment to the team at Bank of America on this particular file for attempting to find a solution.
Let’s confirm 2 things very quickly. The company that you pay your mortgage to every month is called the servicer. The company 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 succeeding loan is owned by eTrade. They are into the mortgage business, i guess.
With an offer of $125,000 and a BPO that was approximately exactly the same, this proposal was a no-brainer. The first lender agreed to 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 said that they would agree to $9,000. That was their last offer.
The trouble is, if foreclosure occurs, they get nil. The primary investor decided that they could give eTrade $6,000 and still come out ahead of foreclosure.
Many lenders will tell you that they are only 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 deal will get done this week. We are so close with the assistance of Bank of America.
On a side note, if you know Matt Vernon, inform him that he is more than welcome to be a visitor on Shortsalepowerhour.com. He can reveal some quality information with the short sale community.
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