Home Buying in Montclair>Question Details

Kungfugeisha, Home Buyer in Cherry Hill, NJ

How long does it take to get a formal letter of approval on a BoA short sale?

Asked by Kungfugeisha, Cherry Hill, NJ Wed Jan 19, 2011

After waiting 4 months, BoA countered my offer on a short sale. I responded with a counter and a week later, they countered again. I accepted and a few days later, received verbal approval and a closing date of January 11th, the same day that the BPO expired. However, we never received a formal letter of approval because an agent at BoA filed the wrong paperwork.

Two questions: 1. How long should it take to receive a formal letter of approval at this stage? 2. Will they most likely order another BPO or just go with the expired one since it hasn't been that long? Thanks!

Help the community by answering this question:

Answers

7
just listened to a webinar from the "head of short sales" at BOA. According to her, this is not the typical scenario. You might want your agent to ask the listing agent to contact the BOA negotiator for more info. If that is not forthcoming, ask to speak to their supervisor.
Good luck
1 vote Thank Flag Link Thu Jan 20, 2011
Thank you for your questions about hearing back from Bank of America and whether or not they will order a new BPO.

When hearing back from a lender it depends on the lender and the situation. Here is a link to their policies: https://www7.bankofamerica.com/home-loans/learning-center/ho…

Based on my experience with REO's, lenders do order new BPO's when the old ones expire.
1 vote Thank Flag Link Wed Jan 19, 2011
Short Sale approvals vary from bank to bank and state to state. It really depends on how many liens there are on the property more than anything. I have had them settle as quickly as 45 days to just over 90 days. I have never had one not settle. It really helps to find a realtor that is familiar with the process. I work closely with a professional negotiator and an attorney to make sure that the process runs smoothly and that someone is constantly staying on top of the situation with weekly or bi-weekly updates with the banks. When communicating on a regular basis it really helps to avoid mishaps. One call to the bank should give you the answers you need about the BPO. Bottom Line-doing the short sale is the better option over a foreclosure.
0 votes Thank Flag Link Wed Jan 19, 2011
They answer when they are ready not a moment before.

I agree with previous answers.
0 votes Thank Flag Link Wed Jan 19, 2011
As the others say, there is no time frame you can depend on. Maybe tomorrow. Maybe next month. Maybe never. That's one of the difficulties with a short sale.

Ask your Realtor for additional guidance.
0 votes Thank Flag Link Wed Jan 19, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
You will not like this answer! No one can tell you! As you saw, they made the mistake, you are paying for it in more delays. It depends on whose desk it wound up on. In my opinion BoA is one of the more frustrating banks to deal with.
One thing you may be dealing with, it went from a short sale to a bank owned house, meaning the foreclosure process in your state is over. The bank has taken possession of the house, which sends it to a different department within the bank. Keep looking at it, they may list it with a realtor. Your realtor may be able to help you with this part, but remember the realtor may be just as much in the dark as you are through no fault of their own.
0 votes Thank Flag Link Wed Jan 19, 2011
In short sale cases, there is NO SET TIME limit. The bank wants to get as many offers as it can and has nothing to lose by waiting months and months...
0 votes Thank Flag Link Wed Jan 19, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer