BOA Foreclosure during Short sale

4 Replies

Hopefully I can get some advice on a BOA owned 1st home. This was an FHA loan taken out in 1998. Foreclosure was scheduled for 2011. Homeowner began the process of Short Sale per BOA acceptance. Foreclosure still took place although 3 offers were made on the home. The homeowner stayed 6 months after but was forced to leave in 2013. Is there any recourse for this homeowner or help to fight this situation?

What kind of recourse @Cynthia Franklin ? They didn't pay the mortgage so the bank foreclosed. A short sale is an option but that doesn't change the fact they were trying to live in a house for free.

@Rob Beland  Bank of America agreed to allow a Short Sale. The owner went through the steps outlined, found a Realtor, got offers but the bank never accepted and instead went ahead with the foreclosure. 

When a short sale happens and offers are received on a property, the bank is not required to accept any offers. They're within the right to foreclose if offers received are deemed unacceptable. Chances are whatever came in was far lower than what the bank was willing to accept. At this point, the property has already been foreclosed. Not much that can be done at this point. 

My wife and I have processed over 35 B o A short sales as real estate investors and agents.  We are experienced enough to say Bank of America has no idea what they are doing one week to the next.  The problem is your client didn't pay there payment.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here