Bank of America dwindles away over $100k - a short sale success story

In January of 2010 I was contacted by Mr. Smith, a distressed Windsor, CT homeowner at the end of his rope. After a year spent trying to unsuccessfully modify his $260,000 mortgage, he was facing foreclosure and had turned to a short sale to prevent his home from being foreclosed. After several conversations with Mr. Smith, we lost contact and a few weeks later I saw that his home was listed with another agent with no experience in short sales.

In September I got the second desperate call from Mr. Smith. Despite the fact there had been a buyer ready to pay $190,000 for his home, the 7 months the approval took cost Mr. Smith his buyers and he was back at square one, kicking himself for not choosing the right agent to begin with, and now just a few weeks away form his set foreclosure sale date.

He apologized and asked for my help. With the clock ticking away, we corrected the price of the property and it went back on market. I had to call the former agent to ask him to remove his lockbox and sign, and the agent actually laughed at me, insisting the house would foreclose.

A buyer was secured soon after for $160,000. After 4 long months fighting Bank of America for the approval, a heavy snowstorm stole our thunder. The oil ran out, the pipes froze and the house flooded - causing massive property damage. The buyer walked.

Back on market, after yet another price correction another buyer was secured - this time for $130,000.

Again 4 months passed as we pushed Bank of America. Thankfully it was now spring and there was nothing left to break at the house.

The short sale was finally approved and in June of 2011 the sale finally closed.

What was once the chance for BofA to collect had dwindled from:

$260,000 from a loan mod in 2009 to....

$190,000 from the first short sale buyer in early 2010 to...

$160,000 from the second short sale buyer in late 2010 to...

$130,000 from the third and last short sale buyer that finally closed on the house.

Bravo Bank of America! That sounds like $130,000 of bad decisions and delays to me!