Short Sale Soundoff: Bank of America revises short sale
Bank of America recently issued a new Short Sale Agent Update that revises
certain short sale requirements for short sales involving
non-government-sponsored enterprise loans in which the homeowner is eligible
against resale of a property for 90 calendar days following a HAFA short sale
closing is being updated to prohibit any resale within 30 calendar days and
prohibit a resale for more than 120 percent of the HAFA short sale price
between 31 and 90 calendar days of the HAFA short sale closing.
- The Short Sale Agreement is being converted to
a Short Sale Notice which will no longer require the borrower to sign and
return the agreement.
- The Request for Approval of Short Sale and
Alternative Request for Approval of Short Sale are being eliminated. The
Acknowledgement of Request for Short Sale is being introduced in place of
the Request for Approval of Short Sale, but will no longer require
borrowerâ€™s signature and return.
- The time frame for servicers to make a
decision on a borrowerâ€™s request for HAFA has generally been shortened to
30 calendar days of receiving all documents and external approvals
- Treasury will now require both the seller and
purchaser in a HAFA short sale transaction to sign a new HAFA Affidavit
document prior to closing. This certifies that the sale represents an
arms-length transaction and that no money is being given or received that
is not reflected on the HUD-1 Settlement Statement.