Old Republic National Title Insurance Company was recently alerted by Bank of America (B of A) that a short sale scam was being perpetrated involving properties on which B of A is the holder of a note secured by a mortgage or deed of trust. B of A stated in a letter to the Company that the perpetrators of the scam send approval letters to title companies that mimic legitimate approval letters from B of A, including the bank’s logo, formatting and language.

 In response to this issue, B of A states that it has updated its existing short sale approval procedures. On all transactions for which the original principal amount of the loan exceeds $500,000 all B of A approval letters will contain the following statement:

“Bank of America appreciates all of your efforts and cooperation in this matter. If you have any further questions, please contact our Short Sale Customer Care Department at 1-866-880-1232, Option 1.”

The letter from B of A goes on to say that if that number is called that B of A will verify the following information with the title employee who calls:

1) Loan Number;
2) Property address;
3) Closing deadline date;
4) Original borrower’s name;
5) Approved buyer’s name;
6) Short Sale price amount; and
7) Net proceeds amount to B of A.

If you are involved in closing a short sale involving B of A you should phone the number listed above.

 If you have any questions concerning this matter, please contact our Underwriting Department: Steve Gratman, Bill Corrigan or Paula Mack.