Due to the collapse of the real estate market, I have a rental property in foreclosure with bank of America. Fortunately, I had a buyer offer to purchase the property for the full pay-off amount. The buyer requested an exact pay-off amount good for 30 days to allow time to close on the property. Bank of America was only willing to issue a pay-off good for 14 days from the time of issue. This equated to to only 7 days after we received it due to the 7 day processing time. Bank of America also stated that we would have to go through the 30-90 day short sale process even though we were getting a full price offer on the property. My buyer was clear in not wanting to endure a short sale process, that is why he was offering full price.
I have been through dozens of real estate closings and it is standard to get a pay-off good for 30 days from the lender. Because the property is in foreclosure, the bank will not issue the documents needed to process the offer. The only option they are giving me is to let the property foreclose.
Both me and my Realtor tried to get this issue resolved over a 2 week period of time, being bounced from one department to another. We would asked to speak to a supervisor, but they refused any upper level involvement.
Eventually, my buyer backed out and decided to try again after the property completed foreclosure. Although he will be competing against other buyers, the property will only sell for 20-50 cents on the dollar.
I am also currently trying to get help from Fannie Mae, the investor on the loan. They stand to lose money also. So far, nothing.
This is just an example of why the government had to bail out these organizations. They can't even process full price offers to avoid foreclosure. The bank will be lucky to recover half of what is owed on this property due to incompetence.
This just shows that companies like this don't have to do things smart because the Government will just hand them money.
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