Short Sales Approved in 7days
Coming Up Short, More And More
Troubled Borrowers Increasingly Allowed to Sell for Less Than Loan
By Renae Merle
Washington Post Staff Writer
Saturday, July 11, 2009
More than two years into the housing crisis, lenders are beginning to allow more troubled homeowners to unload their homes for less than they owe. The practice, known as a short sale, is gaining popularity as an alternative to foreclosure, but it remains a difficult and lengthy task to pull off because the lender bears the brunt of the loss.
This Story
The number of short sales completed jumped 208 percent during the first quarter of this year compared with the same period in 2008, according to a report issued last month by the Office of Thrift Supervision and the Office of the Comptroller of the Currency, which regulate banks.
Short sales could increase further as home prices continue to fall, leaving a growing number of borrowers owing more than their home is worth. Also, the Obama administration is implementing a program to pay lenders to accept less than the balance owed by the borrower in such deals.
Already, Bank of America, the country’s largest mortgage lender, has seen completed short sales jump 50 percent so far this year, said Dave Sunlin, a senior vice president who manages the foreclosure and real estate division. “We understand this is an opportunity to mitigate our losses, while helping turn around the housing market and help homeowners,” he said.
Bank of America opened a short-sale call center last year. And the bank hopes to launch a pilot program within 30 days that would shrink to one week the time it takes to have a specific short-sale offer approved, Sunlin said. Under the program, prospective sellers apply to Bank of America to get preapproved to pursue a short sale in general, then go back to the bank for approval of specific offers as they come in. The program will initially focus on borrowers who fail to qualify for a government foreclosure-prevention program, he said.
“If they have come to the conclusion that there is no possible workout, they should contact us as quickly as possible,” Sunlin said. read the full article here.
Have been using the list that you provided . Some have ask for resume.Do you have a format on that?
This article is the perfect example of just how bad the media is in reporting the facts. Any short sales agent can tell you a different story…
28,000 results under Google for Bank of America sucks for short sales tells a different story.
So yes they are trying to make it look better but the truth is the specific approval will only take 7 days, it tis the initial one that will still fall under the guildlines of 21-45 day
I have several B of A Short Sales and they are all taking too long. Some as long as a year. Outrageously ridiculous. I had an instance where B of A would not take an offer of 145k and were stuck on 159k. The house went to foreclosure and a year later sold as an REO for 39k. Explain that to your boss!
Bank of America, as well as other lenders, cannot be trust. They have taken millions from the government, and still they do not care to follow the rules, they are doing whatever they want to do. I have many BOA short sale files sumitted since the beginning of the year and as of today I do not have an approval on any of these files. I call each and every week, I contact the negotiator by fax and e-mails and never received an answer to any of my faxes or e-mails. Then, even though the property has a short sale offer to purchase they go ahead and process the foreclosure, again, against the new rules that have been approved.
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The BOA thing is as tough as they say it is. That is why I say that if we all stop working the files for about 120 Days accross the nation that BOA will see what will happen if they don\\\’t get on the same page as other Banks. I have been working with C/W and BOA for a long time some of my best shorts where from C/W. The only differant is it was a 2nd and I killed it.
Market was hot and $310 check was generated from that one deal.
So it says: ….prospective sellers apply to BoA to get preapproved to pursue a short sale in general, then go back to the bank for approval of specific offers as they come in. Does that mean the Realtor is cut out? They are trying to cut the commission regularly to 5% and 4% right now.
Some banks are forcing home buyers to go though them if they want to purchase one of their properties. and it is true they cuttig down the commission some banks are paying only 1% total commission, they don\’t realized that Agens are out there showing their properties and getting clients to them. they want to work directly with the buyes and save the commission the REO agents are now in a good position.
I have done (or tried to do) numerous Short Sales with BofA. What a nightmare. I had this one that took 3 months to approve (short time for BofA). By the time they got it approved, my buyer had backed out (common with SS). It was approved at $159,000.00. I immediately went to my back ups, and did get a fish on the hook. I went back to BofA with the new offer. They told me it had been cancelled. It was only 3 days later. They said it would have to go back through the process. The offer netted them the same as the previous offer. To make a long story short, they denied the new offer, and said they had to have $170,000.00 for the property, and not a penny less. I explained to them that the value had not increased in 2 months (it took them that long to get back to me on the new offer), and that I had it on the market for 9 months. This was the highest and best offer. They rejected the offer, and would not budge. I put it back on the market for $170,000.00. No offers, just a couple of showings, still on the market, sellers filed BK. What a mess!!!!
I have not found this to be the case, I have two short sales with Bank of America, and they have both been in escrow since April. The one we got 3 great offers on, and the bank will not approve it without the sellers contributing $40,000 to close. If the sellers had $40,000, it would not be a short sale!
<a href=\"#comment-1887\">@Mary Rose-Weston </a>
BOA just announced this week to Realtors in West Michigan that they would be taking 6-8 MONTHS to consider any short sale offers. They need to be dealt with in Washington. Talk to your congressman. I did this week and he was unaware of this problem.
HEY ALICE COME OUT OF THE RABBIT HOLE ! BANK OF AMERICA HAS SOME TEA FOR YOU! IF YOU BELIEVE THIS ARTICLE TRY TO FEED YOUR FAMILY WITH THE MONEY YOU MAKE FROM SHORT SALES WITH THEM. B.O.A AND CHASE HAVE BOTH BEEN THE WORST!!! FROM THE INDIFFERENT “HANDLERS” TO THE RUDE NEGOTIATORS DEMANDING THE REALTORS COMMISON BE GIVEN TO THEM TO “ALLOW” THE SHORT SALE TO TAKE PLACE. MORE LIKE PATHETIC ATTEMPTS AT STRONG ARM ROBBERY FROM CHEAP THUGS, WITH NO ACCOUNTABILTY, SINCE THEIR SUPERVISORS ARE AS UNREACHABLE AS THEY ARE
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Bank of America is THE WORST bank to deal with the short sales, I am a Real Estate agent that has several deals with them and they take 7 to 12 months to respond. I am no longer taking short sales if Bank of America is the lender. I just closed one transaction, it took 9 months for it to close! So far the best one I am dealing with is Wachovia they will respond within 7-10 days with an acceptance or a counter offer, I understand that they merged with Wells Fargo and they will be using the same techniques that Wachovia is using…YES!!!
Same here. It is a nightmare to deal with BOA. I hade one and the negotiator asked the seller to sign a deed for the deficient money. I asked her to explain the meaning of short sale. Of course, she had no answer.
BofA short sale: phase 1, phase 2 and Phase3. By the time to get to phase 2-3 will take4month to a year and buyer(of course)will walk away. You get a new offer and they make you start from scratch, good luck with the hole cicle again!(how stupid can the bank system would be??)
The above create.
1:JOB SECURITY for loss mit, home retention etc Depts. with uncompetent employees that can\’t eve read and understand a purchase contracts, HUDs,CMAs etc.
2: Investors losing time and money, investors are hostage and victims of BofA uncompetent short sale systems. increasing the housing market crisis
3: The govertment should be envolve and should investigate the banks, specially because the govertment invested billion of dollars to bail ot the banks.
Yes, this is why I refuse to take short sale listings and entertain offers on them as well. The realtors are the only qualified people working on the files. The banks, who are inundated with short sales or REOs are unqualified and untrained to do this process, causing realtors to work and work and work and work for nothing. I had one in the beginning of the fall of real estate, and the lender (from the East Coast) ordered an appraisal from an out-of-county appraiser, who gave an outrageously high appraisal, causing the failure and ultimately a foreclosure. I am sick of working for nothing in real estate.
I have a B of A short sale that was accepted on 10/26. As of today 1/2/2010 - they haven\’t even done the BPO to approve it yet! 45 days my foot. 7 days - IMPOSSIBLE.
B of A is going out of its way tomake short sales difficult. It should be investigated by the government. I just had to homes that I have had multiple offers on foreclosed by B of A. Every time I have spoken with someone I get a different story. They give you the runaround then foreclose.
Not everyone at Bank of America got the memo. They take over a year to approve a short sale and when the appraisal comes in short because of the decline from time passing they will close the file for non compliance. We cannot talk to a negotiator and we cannot reach a supervisor. They move the criteria daily. Does anyone at Bank of America cares what happens to the property. They are adding to the delema in the market place.
That is true. Bank of America started to run the pilot program with reotrans. The system started the begining of December it is the same concept and platform of the REO business. Wachovia already have a system in place giving you approval in 10 day’s. For FredieMac is going to take at least one more year to be in the same page of Wachovia.
I have had a short sale with Bank of America since June 2009 and have yet to receive a response. It is now January 2010. I find it hard to believe the information in this article. We constantly call and get NO response.
This is a Bogus Bunch of Propoganda! Bank of America is the Worst not just bad but \"The Worst To Deal With\" for short sales. You do what you need to do, give them all documentation, and 2 months later you start the whole process over. After 6 months of that you lose your client! BOGUS!!!
I can tell you that I have several files I have been working on with now BANK OF AMERICA, then Countrywide that have not closed , not a single one
These files I have had for going on two years in the process, currently at different stages of the S2 process.
Examples; I can give you, is the one file the price was negotiated with a phase 1 negotiator only to get the phase 2 to bump the price up $10k and decline the file it took me nin months to get through phase 1.It looks like I will have to start all over again. There goes any hope of a profit.
Of course the other files have either been declined or sent to the new web based process thru Equator, where the agent is assigned access to upload documents for the subject file.
I am not sure if this process will facilitate the short sales. I am only hoping that it will.
I have had GMAC approve a S2 file from start to approval in less than 30 days. I think BofA could learn a lot from GMAC. Tell that to the press.
Their data is so outdated anyway. Why should we believe what they are saying.
I won\’t hold my breath on anything coming from the press at this time.
Bank of America is the worse bank to work. I had a short sale more the 2 years,and I still waiting for the negotiator to approved the short sale.
Ahhhhhh..the new Bank of America system (aka Equator)! Approvals in 7 days? It is typically user unfriendly. In fact, it is bull—- and I would like to meet with Mr. Dave Sunlin face to face and explain why. Or even a phone call to the guy would do. Now they have started turning some of their files over to a confused company called Titanium..another act of absurdity. I am in SW Florida where just about every sale is a short sale - mostly Bank of America short sales. They could pay back the government a lot of money on what they lose on these short sales because they are unorganized, arrogant and mismanaged. House after house with a good offer that was ignored or worse (closed because the negotiator was upset that you \"escalated\" the file to her manager). Buyer cancels. You get a new buyer for less money. Same thing. Third buyer..way less. Finally approved 1-2 years later. Or, the sellers are sick of it and let it go into foreclosure & then it is sold for much, much, much less.. And the Bank of America tune goes on…
Well I would have to say that I agree with most of the comments here… But everyone is talking about the past. What people need to realize is that we are in the middle of a transition. Bank of America is just trying to streamline the process just like Wells Fargo has started with the Wachovia/World Savings Short Sales. This program was a hit in Northern California and was recently released in Southern California in late November 2009. Most agents probably don\\\’t know what I\\\’m talking about unless they actually attend the Realtor Board meetings. Anyways, let\\\’s look at this from B of A\\\’s point of view. They bought all the Countrywide loans (remember Countrywide was the nations largest lender and specialized in the sub-prime mickey mouse loans) That\\\’s why B of A paid back $ to the Gov. So they can release more foreclosures and they will be streamlining the short sale process in order to liquidate. Once B of A get\\\’s a handle on a system, I feel they (along with other lenders) will move quicker when approving SS. Eventually all banks will give in. Afterall if the IRS extened the tax exemptions for owner occupy short sales until 2013, then we need to be ready for at least 3 more years of short sales…