Bank of America has Sold Your Mortgage…What Does that Mean?
Within the last couple of weeks Bank of America has been sending letter to homeowners letting them know that there is a new servicer for their loan. The one I am personally aware of is Seterus, but have also heard that Homeward and SPS (Select Portfolio Servicing) are others. What that means is that they are no longer responsible for handling the loan. If you are making payments, make sure they go to the right place!
Are You Involved in A Short Sale?
If you are involved in a short sale transaction, this could and probably will cause delays. BOA has to transfer documents to the new servicer before the ball can get rolling again and I am hearing that BOA isn’t always doing so in a timely manner. If you have an offer in negotiation it depends how far along things are as to the result of the changeover. If the offer is newly submitted to BOA then you will probably have to start from scratch with the new company. If there is a letter of approval and the closing is eminent then there is a chance the new company will approve the short sale and allow the property to convey. The bottomline is that you will probably face delays and it is important for your agent to contact all parties and communicate with them so no one is surprised by it…there is enough of that in short sale transactions already.
A Letter at Your Doorstep…What Now?
Let your agent, attorney or negotiator know who the new servicing company is. BOA should be transfering documents over to the new company, but you want to be proactive by contacting them quickly and requesting the appropriate documents they need for the short sale file and ask them what they have. Has there been a recent BPO done on the property…that should be one of the files transfered and the new company will wait on that before negotiating on any submitted offer that is not already approved. At least you can get your part done. It also doesn’t hurt to have whoever is negotiating with BOA on your side to contact BOA for an update on the file transfer.
Our Best Advice
Be Proactive! That is something our team stresses all the time. There is only so much that is within your control in these types of situations, but it is very important to have people helping you that know the short sale process. If you have any questions we would be happy to help! 508-258-9010 or [email protected] .