Letter to Bank of America about your short sale policy

Dear BOA,

I know that much has been posted about you being too big to fail, but I think your short sale policy just might do the trick. First let me disclose that not only did I not attend Harvard Business school, I didn't do many business classes in school, so I may not be up on the terminology you use to make sure we do not understand what you are talking about. I am afraid that I will just have to use common sense that my Daddy taught me about money. He always said that a bird in the hand is worth two in the bush. I took that to mean that a dollar I have today is worth more than two dollars I might have in the future. Which brings me to my listing at 1708 Hickory Lane.

Let me start at the beginning. I was called by a couple living in California who had to leave Oklahoma to find work after being laid off. They were seriously deliquent so I agreed to work it. it was not in great shape but livable and an acreage. That was June 2009 and I got a contract within weeks. The price seemed fine but we had an incompetent BPO agent who said the value was higher than normal home listings in great shape while mine needed about $5000 in work. Thank goodness that the FHA appraiser for the buyer knew proper value and came in $20,000 lower with real comps. Oh goody, I have an $86,000 single mortage short sale. I guess as we were getting to the end of November waiting to go to phase two despite having the file accelerated multiple times, that buyer had the cheek to want to get in on the tax credit and walked.

Then I got a second contract and Glory we got an approval from you but we need Fannie and the mortgage insurer to agree. That finally happened in February but one week too late. So onto the third buyer which was tired of waiting, and on to the fourth buyer who is still waiting. Here's the problem, despite the fact that the short sale has approval from all parties, BOA makes you start over as if it never happened. Supposedly they have to approve the buyer so this 4th buyer who would have closed two months ago, who had an approval letter, got an appraisal, and foloishly believes you guys are competent, waits. So now let's see how much we taxpayers are ultimately going to pay on this one deal because your policy in a word, sucks.

20 months of no payments $16,000. Mortgage amount short $30,000. Probable cost of administration by you, the insurer, and Fannie Mae-Priceless. Let's just estimate a years wages of about 20 people and say this cost $30,000. Now the net return to you is only $10,000 out of the original $90K mortgage if you close it this month. Fat chance and don't tell me the Equator system solves problems when all it does is make uploading faster. Hadn't affected the response time. Now the worst part. If this $86,000 sale happened in 90 days, versus over 360 days, why not have one of your bean counters estimate the loss in opportunity cost. If you don't have the money, you can't lend the money. That bit of wisdom comes from the game of life. You see, I want you to make a profit because like many Americans, I dread the bill we are going to pay for your greed and risk taking that makes you look like an addicted gambler at a casino.

P.S. I hope you enjoy your time at the CDPE Convention next week. I will be there along with many other short sale specialist who I am sure love you as much as I do. We can share tales about how when other agents call to show my short sale and they ask who is the lender, they cancel when they find out it's you, and I don't blame them for looking out for their clients best interest. I only wish you would do the same for America and change your policy so we won't have to bail you out again. Or not.