ETrade Ought To Not Be In The Mortgage Business
Forgettable Friday revolves around Bank of America another time today. We’d like to share a tale with you to shed some light on what is going on out there in the small sale trade. We have become Matt Verson supporters and we need to give some recognition to the staff at Bank of America on this specific file for trying to find a resolution.
Let’s establish two things very briefly. The company that you pay your mortgage to every month is called the servicer. The business that owns the loan or has a financial interest in it is referred to as the investor.
Both loans in this situation are serviced by Bank of America. The original loan has Bank of New York as an investor. The subsequent loan is owned by eTrade. They are into the mortgage industry, i guess.
With an offer of $125,000 and a BPO that was approximately exactly the same, this bid was a no-brainer. The original lender agreed to the transaction. The second lender denied it. They were due about $30,000 and offered $3,000, receiving 10%. They demanded $10,000 and then relented and plotting that they would accept $9,000. That was their last offer.
The difficulty is, if foreclosure occurs, they get nothing. The primary investor resolute that they could give eTrade $6,000 and still come out in front of foreclosure.
A lot of lenders will tell you that they are only the servicer and they do not deal with the investor discussions. Bank of America raised their game really attempted to get this deal done. With any luck, that deal will get done this week. We are so close with the help of Bank of America.
On a side note, if you know Matt Vernon, tell him that he is more than welcome to be a visitor on Shortsalepowerhour.com. He can reveal some vital in rank with the small sale community.
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