Over and over agents reported horror stories to media about Bank of America short sales. The bank lost documents, abruptly closed files for no reason or simply refused to respond to repeated requests for updates for months on end. Some files dragged out for years. But much of that changed at the end of 2009 when Bank of America turned to Equator.com to process its short sales.
I sell a lot of Bank of America short sales in Sacramento and am personally very pleased that Bank of America has turned its reputation around. After Equator stepped in, most agents are happy to list any Bank of America short sale because approval time is 30 to 60 days, on average, which is a far cry from the old days.
Seller Documents Required for a Bank of America Short SaleProvided the existing loan is not an FHA loan or a VA loan, and the seller does not qualify for the HAFA short sale program, among a few other disqualifications, Bank of America short sales are pretty simple. Here are the documents the bank will need from the seller:
- Bank of America short sale package
- Bank statements
- Tax returns
- Payroll stubs
- Third party authorization
- Hardship letter
Agent Duties for Bank of America Short Sales
The agent is critical to the short sale process. All communication is generally handled between Bank of America through Equator and the short sale listing agent. Here are the listing agent's duties:
- List the short sale in MLS
- Advise the seller and help to negotiate with the buyer or buyer's agent
- Qualify the buyer by obtaining a preapproval letter
- Put the short sale into contract
- Open an account at Equator.com
- Upload offer and documentation such as the listing agreement and estimated HUD
- Complete Equator tasks
- Submit final HUD prior to closing
Excluded Short Sale Fees for Bank of America
Each investor may have different guidelines, but for the most part, Bank of America generally does not pay for home warranties, delinquent utilities or past due HOA fees, and pest work or repairs. Below are the customary fees that are often countered out from the HUD:
- Excess settlement fees, per investor guidelines
- Notary fee
- Doc preparation
Seller's Duties for Bank of America Short Sales
The seller uses a different website to upload information. That website is the Bank of America homeowner portal.
- Create an account
- Upload documents as requested
- Supply hardship reasons
- Submit financial information
Bank of America's Short Sale Process
Bank of America will collect all of the information it needs from the listing agent and the seller. It will assign a negotiator and complete the process as follows:
- Contact an agent to complete a BPO.
- Review the documentation and request missing pieces of information
- Order internal payoff numbers
- Issue a counter offer
- Send the file to MI and / or the investor
- Accept, counter or reject the short sale
- Notify the agent of the outcome
At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California. Disclosure: Weintraub's investment portfolio contains shares of BAC stock.