Is Bank of America Circumventing The New Short Sale Guidelines?

I found this very informative article that deals with how BofA seems to be able to take actions that are contradictory to the spirit if not the letter of the new Short Sale guidelines. As Julie Jalone explains the bank is now incorporating collection measures into the actual “short sale” process. As you can imagine this is no exactly conductive to a speedy transaction.

“  For example, we had a short sale approved by them in March but the buyer walked so we had to re-submit the request with a new buyer.  It took the past two months for BofA to process (why BofA bases a short sale request on the buyer instead of their borrower is a whole different story).  The counter offer from BofA arrived last week and not only did they increase the amount they want by $20,000 they are now requiring the sellers to contribute $9,000 in cash and sign a note for another $19,000.  For this the seller’s can avoid a foreclosure on their record and not have to worry about additional collection efforts by the lender.  By the way, in this case, because the loan proceeds were used to purchase the house if it goes to foreclosure the lender has no further collection rights.  Is avoiding a foreclosure worth $28,000?”

Read the entire article here