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Bank of America
Short Sale Report
| Time to Acknowledge |
Time to Approve |
Commissions | Full Release Available |
Comments |
| 5 days or less | 60+/- days | 5% | Rarely |
1sts - There is hope that BofA's adoption of the REOTrans (now Equator) platform for short sale processing will cut down the time it takes to get a short sale done. Equator is not going to give "full settlement" approval letters (at least not yet) but it does improve the short sale file submission process. The biggest advantage is that all documents will be date and time stamped which will eliminate the need to resubmit lost documents. The use of the Equator system is a step in the right direction. You will still need to open all files with the loss mitigation department and be referred to the Short Sale Support department. Not all loans will go through Equator. It appears that only the Fannie/Freddie and investor loans will be assigned an Equator file number. The Short Sale Support department will let you know if your file will go through Equator. (To check to see if your loan is a Fannie Mae or Freddie Mac go to www.fanniemae.com/loanlookup or
www.freddiemac.com/mymortgage) If the loan is a Fannie or Freddie loan be prepared to have 2 BPO requests. One order by BofA and one order by Fannie/Freddie.
It does not appear that their Short Sale Support department was adequately trained on Equator. Additionally if you had a file submitted in the last 3 months and it needs to be submitted through Equator it feels like you are starting the process over again. Short Sale file handling runs about the industry average of 60 days +/-. Normally not flexible when homeowner hardship is unique. Operates very much like the big bank they are - cumbersome policies that are slow to change.
If you get a good negotiator they are worth their wight in gold since there are numerous tasks in Equator that they need to complete to keep the process flowing.
Sellers and agents have different logins. Agents should get their sellers login information to make sure that the seller docs are uploaded properly.
2nds - Bank of America continues to present the most difficult challenges in the servicing industry on Short Sale proposals, on home equity 2nds. It takes approximately 5 weeks for them to acknowledge receipt of the package. They typically demand 5% of the net proceeds which typically equates to 12-15% of the loan balance when other lenders are closer to 10%. (This is still dramatically higher than the $3,000 in the treasury proposal). If the file is charged off and sent to recovery/collections we have heard from some agents that they are surprisingly easier to work with than the loss mitigation department. This may not be true in all instances.
Update - Since the Countrywide integration, Bank of America has become absolutely inflexible on the continuing liability for deficiency issue when authoring short sale approval letters. California borrowers, who are legally entitled to anti-deficiency protection, are forced to accept liability for the deficiency on first and second mortgages as a condition of BofA short sale approval. While this is not a new issue, the fact that there is virtually not room for flexibility is new. Irrespective of the severity of the hardship, the troubled borrower is forced to either accept the liability or surrender to foreclosure.
Comments
I have been successful at closing two (2) BofA short sales; I find their process time the longest; you have to monitor their service every week, at least twice a week or your file gets stuck in someone's in box; be aggressive with the request. I also found they were the easiest to secure approval of a second AND back property taxes - and I'm in California.
but did you get them to release the deficiency?
They are BUSY BUSY BUSY, call at least once a week or every other week and escalate your file when it is available to you ( helps push the process ). Support bank statements with as little money as you can to not get hit with a required cash contribution or a 15 year 0% promissory note for a really high amount. Supply documents supporting your hardship so that the investor that is buying it will be more comfortable to buy this loan knowing that it is an actual hardship. Good Luck. If any questions email me or any advice on how to get B of A short sales to be more efficient, I will help post and pass the word to anyone that needs help out there.
thanks.
Horrid to deal with. Submitted COMPLETE package in June. Didn't get a response until Sept by which time some financials are outdated. They call Friday morning, want updated financials by 3 pm same day or they will close the file. Inconsiderate, insensitive, inefficient. Loan negotiators don't seem to THINK or even read the hardship letter details. Seller suffered 4 deaths in the family in two years for funeral expenses of nearly $30K. HOA won't allow renting out unit and slapped seller with nearly $12K in fines and legal fees. But negotiator considers these not long-term expense and not cause for financial hardship. HUH?
You did good! I submitted offer first of Feb. didn't get actual approval until August then
couldn't get B/A 2nd to approve so lost it this week. They don't make logical sense. Nego.
was rude and horrid to work with on the 1st and the 2nd wanted more money doesn't matter
seller broke, on social security and disability they got top price for property, now they have to
start foreclosure process and property is now vacant. Won't do another with B/A or Countrywide.
Please anyone out there with means to efficient method with BofA/Countrywide please let me know. I have a couple buyers out there waiting on approval and listing agents hitting brick wall now I am going in to them with offer on one of my listings. How can we turn these in 60-90days. I'd be happy with that since I'm currently 6 mos on these others! Help!
Escalate!..Escalate!...Escalate!... A term that must be used often when it comes to BOA. If you are getting nowhere, require an escalation of the file and speak with the supervisor of the negotiator. DO NOT take NO for an answer. Remember who these negotiators are. This is where you earn your commission. You MUST push and push hard if they are giving you the run around. If you are having trouble with your negotiator, escalate and ask it be reassigned to someone else. Go For it!!!
I am at my wit's end with BofA/Countrywide. If only I could be a fly on the wall when they go though the approval process. It has been months and the updates have stopped. As a buyer, I feel absolutly helpless in the process. I know this may seem like sour grapes, but I will avoid BofA at all cost from now on.
Cali...read my above post
I have had the WORST experience with BOA!!!!!! My offer was accepted in August 09 and I was going to close in 15 days since there was a short sale approval ready....well.....The week prior to closing I receive a phone call from my agent asking why I had withdrawn my offer?? I was hysterical b/c I never requested to withdraw my offer.....well apperantley BOA received a phone call from the buyer (me) requesting to withdraw...well after all was resolved the file was to be opened again and assigned to a negotiator...now all this occured in August...as of today 11/13/09 I am still told the file is under review by the negotiator and there is no way to escalate to a supervisor!!! And to make matters worst I was just informed today the property is to foreclose on 1/4/10!!!!!!!! I have been advised I may either wait it out and see but not to keep my hopes up high!!!! I will NEVER again deal with BOA in any way!!! I have vowed to NEVER do any type of business with BOA!!!!
I know just what you are talking about. We have been waiting 8 months and the same thing is going on right now!!!!!!!
Approved April 29th/3 BPOs later, and 3dr negotiator and the listing agent is telling me we are in phase two now. Wow!
What a fool I must be...we put in a contract on a house that was "short sale approved" on Oct. 22nd and here I am thinking I will get a response any day now?? The listing price was $459K, we offered $470K with $10K back in closing costs. We were told that the bank had approved a prior offer of $480K but the buyer's financing fell through, and that because of this we would not have to wait as long...but is this true? I have renters in line for my house who are waiting on us and we've told them they can move in Feb 1st at the latest, but now I am really starting to doubt! Any words of encouragement out there? Thanks!
I am representing a seller on a short sale . Both the first and the second are with BofA and his first missed payment will be this month. He tried to do a loan modification but was denied. We're hoping getting a head start will make a difference. Agreed? The thinking behind it is no trustee fees have been incured and the HOA (it's a TH) is still current.
Origianlly it was a countrywide loan but of course, BofA bought them out. Does anyone think this makes a difference?
Also, the hardship is his girlfriend who is on title lost her job but he hasn't yet he's the only one on the loan. There income was cut in half over a year ago and in a real bind financially, especially since they were trying to do the right thing and stay current at all costs! Now it's down to an approved short sale or it's a foreclosure in the end.
Love the forum, love the comments. Thanks in advance for sharing yours.
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