Home Buying in Maricopa>Question Details

Copamom, Home Buyer in Maricopa, AZ

Our offer on a short sale has been accepted. How long does it take B of A to send closing documents?

Asked by Copamom, Maricopa, AZ Tue Jul 19, 2011

Offer was made end of April. Offer was accepted a couple weeks ago. One lender only, which is B of A. My realtor says B of A is the worst... they take their time. How much longer before we receive the closing documents so we can go to Escrow? We are in the Phoenix area.

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You will receive an approval in approximately 30 days after you've reached the end of your rope.
Web Reference: http://www.321property.com
1 vote Thank Flag Link Tue Jul 19, 2011
One of the worst Banks to deal with. Quite frankly there is no timetable. However, do think their "Equator" system is based out of Arizona. Maybe that will speed things up!
1 vote Thank Flag Link Tue Jul 19, 2011
You said your offer was accepted. Do you mean the seller (still the current home owner in a short sale) accepted the offer and then sent it over to BOA for short sale approval or do you mean that you RECEIVED short sale approval from BOA and are waiting for the closing docs?

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.

Regards,

Joe Finnerty
484-241-1641
Prudential Patt White Real Estate
Lehigh Valley, PA
610-865-0033
1 vote Thank Flag Link Tue Jul 19, 2011
Typically maybe two months or more for B of A. Your REALTOR is right, B of A is pretty slow. But on the bright side, I bet you got a great deal!
1 vote Thank Flag Link Tue Jul 19, 2011
Hello Copamom:

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
NMLS #223607
CPA--Licensed, no longer practicing

Legacy Group Lending, Inc.
15333 N. Pima Road, Suite 300
Scottsdale, AZ 85260
(O) 480-993-3080; (M) 602-565-3646; (F) 480-993-3081
EM: Bill.Parker@Legacyg.com
Website: http://www.LegacyG.com

MISSION STATEMENT: To create an unbelievably enjoyable experience for my clients, while guiding them through the most important financial transactions of their personal lives. My clients know me as their Mortgage Lender for Life. I truly appreciate your referrals.

If you think it's expensive to hire a professional to do the job, wait until you hire an amateur.
Red Adair, Oil well firefighter
0 votes Thank Flag Link Tue Jul 19, 2011
A little confused, if you have "Short Approval from BOAC" that is it, prepare to close at Title. Submit your final HUD for approval to BOAC and close it if everything else is ready. The approval letter is probably good for 30 days from the time BOAC sent it out.

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
Web Reference: http://www.McVinua.com
0 votes Thank Flag Link Tue Jul 19, 2011
BofA is horrible, but so are most of them. If you have received a "verbal" approval from the bank, it shoul take anywhere from about a month to 2 or more months. Just make sure that they also have their investor's approval. On some of this cases not only the bank needs to approve it, but they also need approval from the actual investor who has the note.
0 votes Thank Flag Link Tue Jul 19, 2011
We have "RECEIVED short sale approval from BOA and are waiting for the closing docs". This is a cash deal... no financing. I thought things would progress a little faster. :)
0 votes Thank Flag Link Tue Jul 19, 2011
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