I am going to assume that you mean the first case. The home owners (sellers) accepted your offer and now everything is waiting on hearing from BOA on whether they approve the short sale.
After the seller accepts the offer, a lot of paperwork needs to be sent to the bank:
- hardship letter from seller stating "why" they are asking the bank to accept the loss
- seller will have to provide tax returns, w2's in order to prove the financial hardship
- a preliminary HUD1 sheet showing what BOA will net after all the fees/taxes/sellers assist...etc are subtracted from the purchase price
- copy of the MLS listing
- a complete sales contract with all information matching the MLS, tax records, and what BOA has on record for the property
A lot of BOA short sales are now on the Equator software system and all of this paperwork is done on-line electronically.Typically, missing paperwork or mis-matches cause a delay. Every request for a missing document stops the process until all the pieces are in place.
Usually, once all the paperwork is correct, a negotiator is assigned and the bank orders an appraisal or BPO (broker price opinion) to determine what the property is worth. After that, they review the offer and accept, counter, or reject it.
If accepted you get Short Sale Approval and the closing docs will follow.
I gave the general checklist but some of these steps may or may not have already been done prior to your offer on the property.
For instance, the home seller may have already provided all the hardship documentation to the bank or the appraisal has already been completed. Each situation is a little different.
Hope this is of some help.
Prudential Patt White Real Estate
Lehigh Valley, PA
As you might imagine, as a mortgage banker I do not have much experience with cash-deal short sales. But, once we get the actual approval from the current lender (in this case BofA), they are pretty much out of the picture and it is up to me to move the process to title and closing. The only delay is related to gathering borrower documents, etc. (we couldn't do before got approval becausethey would go stale as we waited). Once that happens and underwriting approves you, the borrower, we go to documents within days. Something is wrong with your picture and your agent needs to get on it.
The current lender does have to approve the final HUD-1, which title generates, but that should only take a day or two...I would talk to your agent again and demand he/she figure out the problem. I would also call the title officer involved in the deal to see what they say is the delay.
Too bad you don't have a lender involved, we/I would be all over figuring out why you have not closed yet... :)
Bill Parker, Loan Officer
AZ Lic# 09011570
CPA--Licensed, no longer practicing
Legacy Group Lending, Inc.
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Scottsdale, AZ 85260
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Red Adair, Oil well firefighter
The language you are using indicates to me that someone is not clearly understanding the process with BOAC.
My last Bank of America Short Sale closed on Friday July 15th, 2011 so my experience is current.
Arizona Homes for Sale by a Guy from Iowa