ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Bank of America Problems. Mortgages, short sales, deed in lieu and foreclosure.

Updated on February 28, 2013

Doing the right thing is not always an option

I have heard about others having Bank of America problems for years, but now it is I who has been dealing with this bank for over 2 and 1/2 years. I own a home with my ex-husband. Without going into detail you can probably already tell why the house is a problem when you read the words ex-husband. Divorce, an ugly word, is the main reason that the problems with Bank of America even started. I will briefly state that due to the divorce, neither my ex or I could afford the home alone and so we would have to sell. It was on the market for a year with practically no bites at all. Our price started with us making a very small amount from the sale, to breaking even from the sale, and from their was lowered and lowered and lowered. Still no bites. Finally we lowered it enough to get an offer and entered the world of Short Sales.

Short Sale is a world of its own.

The name short sale is in a way an oxymoron for it is not "short". It takes a very long time. Even if you think you can wait it out knowing this and the buyers say they can wait it out because they really want the house, most of the time it doesn't work out. What should be a very simple procedure somehow gets overly complicated, overwhelming, and perhaps one of the most frustrating experiences I have ever been through. The amount is "short". The house is selling for less then you owe the bank, so there is a ton of paperwork to be faxed. Bank statements, paystubs, W-2s, tax paperwork. Doesn't sound like much but as the case is being worked on at the bank time runs out again and again so you need to submit new documents again and again. I lost count over the last 2 years how many items I actually faxed over paperwork to Bank of America.

My ex and I have been through three short sales in the past 2 years, some lasted longer then others, but each time the buyer backed out because it took anywhere from 3 months to 6 months, to even 8 months. I can't blame them really. My ex lived in the house for free for almost 2 years and at least maintained the house. I am not really sure what the bank was waiting for.

I, on the other hand, was waiting to see once a short sale went through what would happen to the difference that we owed on the house that was not covered by the sale. Say you owe $300,000 on a house and the bank approves a sale for $250,000. What happens to that $50,000 that was not paid back to the bank. I was told by several lawyers that one of three things could happen:

1.) they would forgive the debt.

2.) they would forgive the debt but issue a tax form so that it would need to be filed as a gift (this would be split between my ex and I) on our tax returns.

3.) they would expect us to pay back the difference.

The last short sale we thought was definitely going to go through. During this time my ex remarried and moved to a new house in anticipation of the short sale going through. I rent a small house while waiting to start rebuilding my credit. Still waiting. The sale didn't go through, the buyers backed out. Our home that we still own is now vacant and winter is approaching. This brings us to the world of deed in lieu of foreclosure.

Deed in lieu of foreclosure

Deed in lieu of foreclosure, or handing over the keys to the bank, is another option. One that I thought would be quick, easy, and painful but at least I could start rebuilding my credit. Your credit will suffer almost as much with a deed in lieu as with a foreclosure but not quite because it is seen as cooperating, but your credit will suffer worse then it would have with a short sale. I was wrong. It was not quick and easy, just painful. I called to speak to someone and was told I would need to once again fax over all the paperwork. They claimed that because I was working with a different department they are not privy to all the information that was sent to the short sale department. They then asked me why I would want to do this since the house was not even on the foreclosure list. I was shocked to hear this since we haven't paid on the mortgage in over two years. It is crazy that the bank does not even recognize our house as one that should have been foreclosed upon already let alone not even be on the list to start the foreclosure process. I was also told within 5 to 7 business days that a specialist would call. I never heard from a specialist. My ex took over and called Bank of America and has finally come to the realization that no one really knows what they are doing. The breakdown of communication at Bank of America is laughable (something that you must do in order to not break down and cry). Not to mention that he was told that someone from the bank has driven by our house twice in the last two month and claims someone is living there. The house is completely vacant and is deserted. The situation is insane.


I have decided to walk away. As I was once told by a very wise person that I am privileged to know, doing things over and over again the same way and expecting different results is the definition of insanity. I have found a way to rebuild my credit and walk away from the house and the insanity. I wonder how long it will take them to foreclose? The house has been left alone now and is deteriorating each day without someone to care for it. Winter is upon us and there is no heat in the house. No telling what will happen. People wonder why the banks are in trouble even though the government has given them money to help them with mortgage loans to help the housing market. They obviously are not using these funds correctly.

Please bare with me while I share one more story that helped me put the housing market in perspective. The media says the housing market is turning around but I am not sure how it can. A real estate agent I know told me of a trip she made to California recently where she got to visit the short sale department at a bank (not Bank of America). The building was stories high and as you walked in there was beautiful marble and columns and greeters. She was sent to a floor several stories up. There were multiple elevators that brought you to different floors. As she got off the elevator the lobby was nice and still marble but not as nice as the entrance to the building. The greeter walked her down multiple hallways that became more and more dreary as they walked until she arrived at this small little room where she saw 9 people working amongst tons of files - the short sale department. There were so many files from floor to ceiling that there was nowhere to sit. She stood and talked with these people after the greeter left. She was told that they made minimum wage, they needed to touch 10 files a day and make some kind of progress on each of them, and close at least 3 files a week or they would be fired. There were 9 of them, there are over 400,000 short sales just with this bank alone. Amazing, huh?

I don't know what the answer is to this but I tried to do the right thing. Unfortunately I was not allowed to do it by the entity that would be served best by helping me. I am sure many of you have been through the same type of situation. Please feel free to share your thoughts in the comment section below.


    0 of 8192 characters used
    Post Comment

    • Keeley Shea profile imageAUTHOR

      Keeley Shea 

      5 years ago from Norwich, CT

      Thank you for sharing Sharon. I feel your pain! No one knows that it can be this maddening until you go through it yourself! Thanks again!

    • profile image


      5 years ago

      I was almost finished with deed in lieu with BofA in Nov 2012 when they sent a letter and said they had SOLD the mortgage to Nationstar. Mine is a VA, neither bank would have lost anything. BofA changed the locks and winterized my house in Oct. Nationstar made me do it all over again, my personal papers are everywhere, they just asked me for MORE. I sent back an email and said I'm ready to tell you to let the sheriff come, and then your bank will lose. Nationstar has THREE doing initial work, then it goes to underwriters, which is where mine seems to be stuck while they ask me for more and more. Why? the VA has already worked on the file, it was going to adjudication in November! Needless to say, not doing my stomach any good! I tell everyone to stay away from BofA. Even the VA thinks so! I'm not too happy with the new bank, they've had all my paperwork since Dec 5 and it is never enough. I know I'm not the only one, thanks for sharing!

    • fastfreta profile image

      Alfreta Sailor 

      5 years ago from Southern California

      This article caught my attention, because I've gone through foreclosure. In the beginning of the process I thought it was the end of the world for me, however, in the end it proved to be a blessing. Although I've significantly downsized, like nothing I've ever experienced, I'm much happier with much less worry.

      I'm so glad to see that you've landed on your feet, especially with children. I can see this was not your primary residence, but I'm sure it's no less painful to go through the process.

      I don't know if you fell in that window where all foreclosure candidates are being given a "minor" stipend for all the "mistakes" that the banks made during , not the least of which some of the ones you listed. Actually it's sort of an anti climax to all we've gone through at the hands the mega giants.

      Anyway this was not only a good hub, but it was a little de ja vu. Voted up, useful, and interesting.

    • Keeley Shea profile imageAUTHOR

      Keeley Shea 

      5 years ago from Norwich, CT

      Thanks for your feedback billybuc. I feel privileged to have your admiration!

    • billybuc profile image

      Bill Holland 

      5 years ago from Olympia, WA

      Thank you for sharing a painful story, one which is all too common in today's society. The statistics run out by the government and the real estate market sound good; things are improving, right? Not by a long shot. Statistics are only as good as the person quoting them.

      I applaud you for walking away. That took courage and determination, and those are two qualities I admire.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)