|Published:||Aug 19, 2010 11:37 PM EDT|
|Updated:||Aug 19, 2010 2:36 PM EDT|
CAPE CORAL, Fla. - A homeowner gets ten buyers over two years, but still wasn't able to save his home from foreclosure.
Lance Dunning didn't want to move from his Cape Coral home but when the market dropped, the realtor lost most of his income. His bank encouraged him to short sale the home.
"So I proceeded to list my house and sold it to a nice couple from Texas; cash for $203,000 back then. And that was two years ago. Well, they ignored that and I have sold the house ten times since then. All legitimate buyers and deals. It's been ignored for two years," Dunning recalls.
Dunning presented every offer to the bank, ten total, but tells WINK that he heard nothing back from Bank of America. Each time he watched the buyer walk away. The most recent cash offer for $200,000 came in January. As Dunning waited to hear back from BOA, the bank foreclosed on the property without ever giving him a response.
"So now the house is foreclosed on. It's been sold back to them for $66,000. My buyer got disgusted and walked away. Now the house is on the market for $199,000," Dunning says.
He also says the whole process doesn't make sense.
"I don't have any answers. I would like-- obviously I can't get anything from this, what's done is done, but I think it should be investigated because something is not right with this procedure. When I can have this place sold for over $200,000 two years ago and continue the process for two years and get ignored and then they can buy it back for $66,000 is not right," Dunning tells us.
WINK News Call for Action spoke with Bank of America who blamed the unexpected volume of short sales on their communication problems. They told us that they have been working to improve their communication with customers trying to short sale their homes by adding staff and implementing better training.
However, if you are trying to short sale your home there's something you should know that no bank will tell you.
If you put down less than 20% on your home you likely have something called mortgage insurance. It's a fee included in your mortgage so the bank can take out an insurance policy. That policy protects the bank against loss if they ever have to foreclose on you. Many times the amount you're insured for on mortgage insurance is greater than the value of a short sale. So the bank makes more money if they make an insurance claim if you foreclose than if you sell the home and walk away.