Bank Of America Short Sale (BofA Short Sale)
Bank of America used to be one of the most difficult banks to complete a short sale with, but they have worked hard to correct the problems they were facing. Since April, Bank of America has hired over 2,000 employees and now has over 18,000 workers in “default management” (A 60% increase since January 2009). In addition to the hiring push, Bank of America was the first bank to launch their 100% online short sale system “Equator". The new system has helped to streamline the short sale process and has made a dramatic improvement in their turn times.
Between the two big steps they have taken along with all their many other smaller changes, they have gone from being one of the most difficult banks to work with, to a bank who’s short sales we look forward to taking on.
Approval times have gone from 6-12 months, to 1-3 months. One negotiator works the file from start to finish and both first and second loans are handled by the same negotiator.
The new Equator System allows the homeowner and the agents to see where they are at in the short sale process at any time.
If you are an agent or a homeowner, the contact number for Bank of America’s short sale department is:
8am-9pm EST Mon-Fri.
If you are a homeowner and have a loan or loans with Bank of America, their short sale process is very similar to most other banks.
CALL: The first step in a Bank of America Short Sale is to CALL and determine if a short sale is the best option for you. You can contact us at anytime via phone or email to review your situation.
You may be eligible to sell your home in a short sale, if:
- You have a hardship, such as a job loss, divorce or medical emergency
- You owe more than your house is worth
- You’re unable to afford your current monthly mortgage payment
- You’re unable to modify your current home loan
HIRE: If you determine a Short Sale is the best option, the next step is to hire a license real estate agent that is experienced in short sales and dealing with Bank of America. Hiring an experience agent can mean the difference between a successful short sale an foreclosure.
MARKET: Once you have hired an agent, the next step is to get your property put onto the market and begin marketing for buyers/offers. The listing will be handled like a standard real estate listing. Our team aggressively markets the property at market value in an attempt to obtain an offer in the first 30 days.
OFFER: When an offer is received, the short sale will be “initiated” with Bank of America, at which point you will upload financial information into their short sale system and your agent will upload the offer and all other supporting documentation. If there is another lien holder in addition to Bank of America, the short sale package will also be sent to them and the short sale will be negotiated with both banks.
REVIEW: After the offer and supporting documentation is uploaded, Bank of America will begin their approval process, which will include ordering an appraisal on the property to verify that the offer received is inline with the fair market value of the property.
APPROVAL: After the review process is completed, the bank will issue their approval letter and the closing of your property will take place. The closing is typically a standard 30 day escrow.
For Homeowners – Here is some resourceful information on Bank of America
Bank of America Approval Letters
A big concern with Bank of America over the past couple years has been their approval letters. For some time, they have only been using one approval letter which contained the verbiage that they reserve their right to come after the seller for the deficiency balance after the close of escrow. It also contains a vague statement stating that these terms apply as long as they are allowed by state law. They still use these letters and it is very important to you as the homeowner that (1) You seek appropriate legal & tax advise while going through the short sale (2) Have an experienced agent handling your short sale that understands how to negotiate to have this verbiage removed. While we can negotiate the verbiage in the letter, we cannot offer you tax or legal advice, but do have an excellent tax accountant and attorney that we can refer you to.
Here is an example of the Bank of America Deficiency letter and Bank of America Non-Deficiency Letter.
If you are a Realtor or Attorney, the phone number for the Bank of America short sale department is the same:
8am-9pm EST Mon-Fri.
You will need to create an account on the Equator System in order to be able to submit a short sale. The site is http://www.equator.com/. Below is the Bank of America training manual that explains how to create an account and use the system from start to finish.
For Realtors – Here is some resourceful information on Bank of America
For Attorneys – Here is some resourceful information on Bank of America
Here are further examples of the deficiency vs. non-deficiency letters:
Bank of America Short Sale Approval Deficiency
Bank of America Short Sale Approval Non-Deficiency
Bank of America Back Up Offer Guide
Bank of America Short Sale| BofA Short Sale