Bank of America speeding up the short sale process

Posted: March 27, 2012 in Short Sales, Uncategorized
Tags: , , ,
I spent Thursday morning with a few hundred realtors at Bank of America’s short sale class.  Over the past several months, BofA has made changes that have eased the process.  I have been pretty vocal about my criticism of Bank of America; however, this morning, I was very excited and impressed with the changes they are implementing over the next few weeks.  In the past, it was difficult to get a short sale approved unless you had an offer in hand.  They are now making it much easier to get the short sale approved without an offer, and they will give us their approved sales price, so that we can accurately price the property.  Typically, the agent and seller set the price of a short sale, and then we hope and pray that the bank will take it, or at least counter back with a reasonable price.  Now we will know their bottom line before we ever put the property on the market.  Every 21 days, the property will be reviewed and if no offers are forthcoming, they will most likely reduce the asking price.
Also in the past, first the short sale agent submitted all of the sellers’ documentation to the bank, i.e., bank statements, pay stubs, mortgage statements, hardship letter, etc.  Once that step was completed, the bank would go forward with the valuation process.  After that was done, they would submit the package to the investor(s) for a response to the buyers’ offer.  Now, they will perform these steps concurrently, rather than consecutively.  This has the potential to save us a lot of time and makes more sense.
B of A is implementing many other new steps to streamline the process, so don’t dismiss short sales.  I have people say to me all the time “I hear short sales are really bad,” or “I hear you shouldn’t buy a short sale.”  That’s not at all the case.  If you have to find a home immediately, I would avoid short sales, but if you have a little time, a short sale could very well be the way to go.  Because people don’t want to wait, fewer offers are made on short sales, so you as the buyer have less competition.  If the seller receives 3 offers, and yours is the best, your offer will be the one sent to the bank, so within a few days of making your offer, you’ll know if your offer is the one the bank is considering.  If you can be patient, your patience could very well pay off in you purchasing a beautiful short sale home.
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