Check out some more nutty reasons why mortgage lenders make short sales take so long.
- The bank negotiator was fired and no one else at the bank took over the file. It simply sat in limbo for months. One would think that a manager who fired a staff member would reassign the file to someone else, but apparently that did not happen.
- The bank stated that they would not speak with the seller because the seller was represented by an attorney. The bank stated that even though the seller is the borrower and was being called several times a day as part of the bank’s collection efforts, their policy is that when the seller hires an attorney they only speak with the attorney. Here’s the kicker: the bank would not speak with the attorney because they could not find the Authorization to Release Information Form in which the seller granted permission for the attorney to speak to the lender. So the bank would not talk to the borrower, who was trying to grant permission for his lawyer to communicate with the lender.
- When dealing with one bank negotiator at Wells Fargo, her voicemail stated that she would not return any calls. Interestingly enough, her voicemail was full and thus no one could leave any messages either.
- A Bank of America negotiator stated for weeks that the investor was close to making a final decision. Eventually, the buyer threatened to terminate the contract. When pressed for an answer, the Bank of America negotiator admitted that he had never submitted the file to the investor for a decision. When told to submit the file immediately or the buyer would walk away, the negotiator replied that the appraisal had expired and therefore he would have to wait for a new appraisal. The buyer walked away, and shortly thereafter thieves stole all the copper and wiring from the house. Bank of America lost tens of thousands of dollars because a file sat on the negotiator’s desk.