Upon reading your comments regarding Bank of America at Brave New Films, I thought I should tell my story. I am sure you have heard countless tales, so it is probably not an unfamiliar story.
I purchased my home in 2003. A beautiful 3000 sf home in a retirement community. I was recently out of a relationship and I wanted to be in a quiet neighborhood with great future property value, but I was also shopping for a deal because you never know when an opportunity to sale comes along. I searched and found a foreclosure. It had been vacant for two years, yet still appraised at 267,000.00 and the market was moving up. I got it for 177,900 and put down 38,000 dollars. My payments were only 1100.00 per month and I was making well over 30,000 per month so life was grand. I continued making my payments over 3 years to Countrywide with no problems. Then in 2007 the market began to change in my business and I was literally cash flow broke. I continued making my payments however because they were low due to my down and I sold assets to keep up my payments. Since my equity position was so good a mortgage professional from Countrywide told me I could get an equity loan and get some cash back in my pocket. He said he could get me approx 50,000 with no problems. Well, the 50,000 turned out to be 15,000 for me and 35,000 in fees and added back to my note. My new payments were now no longer 1100.00, but 2500.00. This was a killer. While fighting to make these payments Countrywide had a fire sale and Bank of America was the buyer. As my situation got worse, I knew I could not continue making these payments and tried to sale the home but no one was buying real estate with the downward spiral of the economy. I called Bank of America and let them know I just couldn't make the payments and would vacate the property. I found a small rental for 1000.00 per month and moved from my home leaving Bank of America the property. A "short sale" was suggested and not long from then an offer came in for 180,000. This was reasonable considering the new note was only 192,800.00. The buyer gave Bank of America 120 days to accept or decline. At 120 days the buyer rescinded his offer. He was an investor and needed his money to be working for him and had made it clear regarding his timeline. Approx. 3 days later, I received a letter from Bank of America saying, Congratulations, they had accepted the offer. A little late. I thought that was the end and there would soon be a foreclosure. My perception of that being the outcome was re-enforced when my realtor received a :courtesy" call from a local locksmith that she needed to pick up her lock box and signs that he would be heading to the property to change the locks. Nineteen months later, I received a call from Bank of America asking if I would like to try and sale the property again and re-list it to possibly avoid foreclosure. ***, I thought it was already done so I said sure and we re-listed property. A few offers in the 165-170 range had come in but were rejected. Finally another investor made an offer of approx. 180,000 again. My realtor put up with a million ridiculous reasons for continued delays and held the offer together even though Bank of America had drawn this process out over 6 months! In addition I noticed an oddity to me on the"settlement" sheet it said that Bank of America settlement cost to Countrywide was over 156,000? Odd to me in that, I had watched the "negotiating" with going bankrupt Countrywide and Bank of America and was aware that like most bankruptcies B of A paid pennies on the dollar for Countrywide. It seemed quite unlikely that they decided to buy all other assets from Countrywide for approx 10% of cmv but willing to pay 80% of what the note was for mine? Now B of A through a new loop in the process. My understanding of a "short" sale was that you made an offer and they either accepted that offer or declined, but Bank of America said they were making a counter-offer….. Of $216,000.00!!!
Now keep in mind, we had not over the last 24+ months had an offer of better than 180,000…and they accepted one of those offers initially. They said that their counter was in line with the current market value and that at our own expense we were welcome to seek another evaluation. The buyer, the buyers rep, my realtor, the title company rep… all were aghast and suggested I seek to sue the idiots for insider trading practices and fraud. Not only did Bank of America not wish to provide us with their analysis of current market value the logic of current market value being somewhere near the 180,000 highest offered price in over 2 years escaped them. Plus the fact their counter seemed not to even resemble a "short" sale considering the paper was for 192,800 and their made up settlement with Countrywide was 156,000. That is not a "short" sale that is a 40,000 dollar profit on settlement and at worse case a 23,200 dollar profit on the paper's face value. Not to mention the 10 base points (approx 3.25%) per annum profit guaranteed by the taxpayers (ME and YOU) for at least five years for the honor of them stealing assets. Over 4600.00 per year…23,400.00 additional for just not accepting that offer. So now, they have an asset they say is worth:
216,000.00 Their CMV evaluation23,400.00 5 yr guaranteed profit192,800.00 debt owed by me432,200.00 In B of A pocketbooks
I told Bank of America, ***, I wouldn't have accepted 180,000 either if I new I could turn a paper transaction with Countrywide of let's be real, probably 15,000 into Â½ MILLION in less than 24 months. They were geniuses and I accept their counter-offer of 216,000.00. Enjoy and you guys are slicker than any Wall Street Broker I ever met!
Thomas D. Woodcock Jr.
Product or Service Mentioned: Bank Of America Mortgage.
Monetary Loss: $216.