Home > Blogs > Starting April 14, 2012 - New Bank of America Short Sale Requirements
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Ute Ferdig - Greater Sacramento Area’s Blog

By Ute Ferdig - Atty. Negotiator | Broker in Newcastle, CA

Starting April 14, 2012 - New Bank of America Short Sale Requirements

On March 20, 2012 Bank of America announced in its short sale Agent Resource Center that they will no longer accept non-Bank of America third party authorizations starting April 14, 2012. Two days later, Bank of America announced that they will “strengthen” their partnership (with agents) through an improved task flow in Equator starting April 14, 2012. I have to admit that I am skeptical any time I see the word “improvement” in the context of making changes to the short sale process, but I do believe that the new requirements might just accomplish exactly that. I have always wondered why they keep asking us for all these other documents after the initiation process. Therefore, I welcome the new more streamlined process. This way, the BPO can be ordered right away and we don’t have to wait until we complete all these other tasks asking for more documents that could have been submitted with the initial upload had they just asked for them. Bank of America stated in its 3/22/2012 announcement: “The new Bank of America short sale process will enable short sale specialists to complete tasks such as document collection, valuations and underwriting at the same time, reducing the time from initiation to closing.” 

New required documents

Here is a list of the new documents that will be required starting April 13, 2012:

If you would like to download all the required forms in 1 pdf file, click here.

If I were you, I would also upload the signed Dodd-Frank Certification. Since it’s not on the list of the required documents, I would upload it separately in the property library. We all know we’ll need it eventually.

What else is new?

  • You will have only 3 days to respond to a counter-offer (you had 8 days before).
  • You will have 5 days to submit a backup offer (should your buyer walk or your initial offer be declined). Was 8 calendar days before.
  • All communications will be done in Equator. No more outside communications. I would recommend you log into your Equator account daily to check for new messages if you have active short sale files in Equator as you can’t rely solely on e-mail notification. I have had at least 1 end up in my spam folder, which is not a good place for it due to the time sensitivity of some of the messages.
  • Bank of America will no longer speak with any unlicensed assistants, title companies, etc. That is why they will require the use of their own 2-part third party authorization which includes a certification by the authorized party that he/she is a licensed real estate agent/broker/attorney in the state in which the property is located. That will put an end to these short sale mills that will negotiate short sales anywhere in the U.S. without having the required licenses in the situs state. I once spoke to a rep from one of those companies that claimed that attorneys were negotiating the short sales. During the conversation, he not only admitted that the attorneys were all at the east coast and the real negotiations were conducted by paralegals (the attorneys only got involved on an as-needed basis).
  • New escalation process through Equator.

What about current files?

If you have open short sale files with Bank of America in Equator, you will want to get started on uploading those newly required documents before April 14th. Unless you have already received a task asking you to upload them, I would upload them to the property library and alert your BAC short sale specialist that you have uploaded the new docs. With any luck, it will eliminate the assignment of new tasks related to the new document requirements.

Training Classes

• Bank of America will host a “Task-by-Task” training class on April 19, 2012 (time 4:00 – 5:00 p.m. ET = 1-2 p.m. PST). To sign up, click here.

Comments

By Brenda Feria,  Mon Apr 9 2012, 20:46
Great blog! Thanks. A lot of useful information.
By Felix Hung,  Tue Apr 10 2012, 01:11
Great informative post! I'll be on the webcast on 4/19.
By Ute Ferdig - Atty. Negotiator,  Tue Apr 10 2012, 19:50
Thanks Brenda & Felix. I listened to the CDPE webinar earlier today and updated my post to add a few items (i.e., shortened time frame for responding to counter-offer and new Equator escalation process - don't know the details yet, but it's more structured as far as whom to contact and how many days you have to wait before you can escalate, etc).
By sandy,  Wed Jan 30 2013, 15:14
I am trying to find a Foreclosure extension form
By Ute Ferdig - Atty. Negotiator,  Wed Jan 30 2013, 15:30
I am not aware of a form for that.

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