Tuesday, February 9, 2010

Just Coasting, But Time Relentlessly Marches On

We are getting close, but nothing is happening.

Where it stands now? Waiting to hear from Bank of America if their investor, Capital One, is willing to meet the unreasonable demands of second mortgage servicer GMAC, representing their investor Deutsche Bank.

I don't even remember if I've ever blogged about this before.

But apparently it's pretty typical in a short sale for there to be more than one mortgage on a property, the first mortgage, and then, usually, a second mortgage or home equity line of credit (HELOC).

Now GMAC/DB should really just sign off and say: OK, we lose, Bank of America gets all the dough. After all, GMAC/DB would get bupkis in a foreclosure. Not to mention the fact that GMAC got billions from the government and DB participated in the AIG bailout, and we're in a national emergency, and it's not supposed to be business as usual, and that any patriotic banker is now supposed to be actually trying to avoid precipitating foreclosures.

Dream on.

But instead, it seems, that GMAC and BofA are playing chicken, and I'm the worm caught in between. GMAC will only take $X. BofA only offered $Y. GMAC counters with $Z. Now BofA has to see if CapOne will take $Z. And that's been another week of waiting.

GMAC should probably be burned at the stake for trying to extract $Z. There are some federal guidelines about this (see HAFA below), which clearly state that second lien holders are only entitled to $3,000.

Well let me tell you, $Z > $3,0000.

And I'm the schmo here. Because when GMAC wants $Z and BofA is only willing to offer $Y, guess who's going to make up the difference.

But I promise, I'm going to hire a blues band and have a party in my basement on the day I move in.