BofA saying to do LOAN MOD before Short Sale

Bank of America is forcing homeowners to do a LOAN MODIFICATION on FHA loans before they start to do SHORT SALE..... I do not get this..If my client decides to do short, what is the point for them to ask homeowners to do loan modification? It is like when I go to super market and I ask them to give me oranges, but they tell me here "try apples"

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  • The only positive thing I have to say to that is that contrary to the long waiting period to approve or decline a short sale, BOA is quick to decline the modification to the Borrower, you should be able to find out very soon if you are good to go with the short sale attempt.

  • Are they saying this for all borrowers or just the ones that are selling because of lost equity?  BoA is in bad financial straits and they also may be under some pressure from FHA to do loan mods.  Are they pushing an FHA mod as well?  There are now markets recouping value and borrowers in some location are also not as 'underwater' as they were just last year.

     

    Or is it like a prequalification process?  Sounds sort of like an REO listing that requires the buyer to get a preapproval from a specific lender before an offer will be considered but they don't have to use that lender.

    • I have an FHA loan defaulted homeowner who is under water. The seller just want to get out the house by  doing short sale, but BofA is saying he has to go thru loan mod process first. I have a second loan with the same situation who just want to get out of the debt. furthermore, they have case manager for each loan now which means if you don't find the case manager you cannot do anything. They keep changing their process! I am really tired to BofA, but thats all we have here and country was big in my area.

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