Short Sale Process With Bank of America In 2015
Many of the short sale agents say that Bank of America short sales earned well deserved black marks in 2005 and 2009. The reputation of bank of America was so bad that real estate agents sometimes refused to list a short sale if the bank of America is involved in the short sale process. Again and again for so many times agents reported the alarming stories about Bank of America to the media. They considered that the bank lost documents, abruptly closed files without any reason or simply refuses to respond for monthly updates on the end. They also reported that sometimes files continued for several years. The basic goal of the Bank of America is to work together with real estate professional and to help the homeowners to avoid the foreclosure.
Documents of seller required for a Bank of America short sale:- Provided existing loan is not a FHA loan or VA loan and sometimes seller does not qualify for the HAFA short sale program because of some disqualifications, at this stage the procedures and qualifications of Bank of America are quite simple. There are some certain documents that the bank will need from the seller:
- Bank of America short sale package
- Bank statements
- Tax returns
- Payroll receipts
- Third party authorization
- Hardship letter
Duties of agent for Bank of America short sales: – The agent is a very important part of the short sale process. All of the communication is generally handled between the Bank of America through the equator and short sale listing agent. Here are some of the common and important duties of the listing agent in the bank of America short sale process;
- 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: – Mostly investor have different guidelines, but for most of the time bank of America does not pay any fee for the warranties of home, lawless utilities or past due HOA fees and repairs. Here are the customary fees that are mostly countered out from the HUD;
- Excess settlement fees, per investor guidelines
- Notary fee
- Document preparation
Duties of seller for Bank of America short sales: – The sellers use different websites to upload their information for short sale process. With the Bank of America the sellers use Bank of America homeowner portal. The common duties of sellers are;
- Create an account
- Upload documents as requested
- Supply hardship reasons
- Submit financial information
Short sale process of Bank of America: – The Bank of America collects all of the information it needs from the listing agent and the seller. After collecting all of the information the bank 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
The Bank of America collects all of the information it needs from the listing agent and the seller. After collecting all of the information, the bank assigns a negotiator and complete the process as follows;
Duties of buyer to qualify for short sale before writing the offer: – Before the buyer decides to buy a short sale home, he/she should ask their agent to do a little groundwork first. Some of the important duties that the agent should do are;
- Examine the comparable sales: – Many of the banks offer the discounted price a little bit from market value but to get an acceptance of the short sale, offers should be reasonable and close to the comparable sales.
- Check out the track record of the short sale listing agent: – If the listing agent of short sale has very few short sale listings and has little experience actually closing a short sale then the chances of offer acceptance may be few.
- Ask how many short sale offers have been submitted: – When the listing agent refuses to communicate the offer prices then the agent should let to know how many offers have been received. If there are multiple short sale offers, then agent nay need to offer more than the list price.