Home Buying in 60504>Question Details

j.sliwa2207, Home Buyer in Aurora, IL

how long does it take to get a BOA approval letter after they accepted offer?

Asked by j.sliwa2207, Aurora, IL Thu Oct 4, 2012

Help the community by answering this question:


Short sales require a lot of patience and can take a very long time.
0 votes Thank Flag Link Thu Oct 18, 2012
From seller/buyer offer acceptance to bank approval is typically 3-4 months. Approval to closing is an additional month.

Lonny Miller

Realtor @ Charles Rutenberg Realty
Serving Chicago and Suburbs
ph 847-347-4666
fax 847-737-1436

'Helping Sellers of Short Sales Throughout Chicagoland'
0 votes Thank Flag Link Thu Oct 18, 2012
Unless I am missing something, it Sounds like you are buying or selling a short sale property (because if it was bank owned the bank would just sign the contract which is their acceptance). BOA uses a software program called Equator that is task oriented to process their short sales. If they agree to the offer in Equator, they pretty much issue an approval letter simultaneously. That's my experience. Thank you.
0 votes Thank Flag Link Thu Oct 4, 2012
I am answering to your responses from J.sliwa2207 cause I am buying the house with him. It IS a Short Sale. The contract was signed on August 24, 2012. Just recently we were asked buy the sellers agent for my birthdate and last 4 of my social security number. As of yesterday she said there is no more informatiton she can get from BOA cause its in their hands and she has no clue when we will get our apprvoal letter from BOA for the short sale. My lender can't move forward until we have the Short Sale letter from BOA and the worst part is my rate lock expires October 19, 2012 and everyone is blaming each other as to who should pay for it. My lender says my Realtor should, my Realtor says the Lender then the Lender said the sellers Realtor. Its a mess but my biggest questions is there any possible chance WHAT SO EVER we will hear from BOA in time to close by October 19th or is that totally out of the questions and I should prepare for the worst and have to do a rate extension? Thank you!
Flag Fri Oct 5, 2012
Mary, you are kind of right in your answer. Equator is the system by which some lenders utilize to communicate with Realtors and to track progress and assign tasks as it relates to short sale offers, Bank of America is one of these that use it. Once an offer comes in there are many tasks that are triggered to collect various information from the seller and buyer. Also as part of the short sale, a BPO is ordered to establish value for the property. The negotiator's job is to coordinate these tasks, review the BPO and negotiate with the listing agent and the buyer's agent to come to an acceptable offer. Once an acceptable offer is obtained then the offer has to go to the Mortgage Insurance Company, if there is one, and then from there to the end investor for their approval. Even though the offer and counter offer were "accepted" it does not end until the MI Company and the Investor approve the deal. At that point you will get an Approval Letter outlining the details of the approval.
Flag Fri Oct 5, 2012
As a CDPE and very experienced agent in short sales, there is no right or wrong answer to your question. If your short sale offered was approved by Bank of America then the next step is to send to the MI company if there is one and then from there to the investor for final approval. The offer price and terms can be changed by either of these parties. So until the final investor approves the sale there is no approval. I have had servicers negoiate a price with a seller only to have the investor come back with a much higher price. Normal time frame in my experience for MI Company and investor review for a final decision is 14 days. But again this can vary depending on who the investor is and the backlog of files they have.
0 votes Thank Flag Link Thu Oct 4, 2012
I do not understand the question as asked. Who accepted what offer? What approval letter? Please provide a complete, concise explanation of the situation. Are you a buyer or seller? Is BOA doing a purchase loan approval or short sale approval or are they the seller of a bank owned property? In any event, timeframes vary for all the above types of approvals and it really depends on the situation and many variables. If you provide additional details maybe we can give you some estimates and general ranges.......for instance, short sale approvals often take 3-6 months, but I have seen them in as short as 48 hrs and as long as a year or more! A typical purchase loan approval these days takes 30-60 days or so depending on complications.
0 votes Thank Flag Link Thu Oct 4, 2012

I can better answer your question if I know some specifics - are you purchasing a BOA short sale or bank owned property or do you have a BOA pre-approval letter for the purchase of a home?

If you are purchasing a home that is a short sale through BOA, the seller must first accept the contract and then it is submitted for the lender (BOA) to approve the sale. This can take some time depending on the negotiators and the lender themselves in how fast the BPO and file moves.

If the SS has been approved by BOA, then you should be able to close as soon as YOUR loan is approved for the purchase.

Your agent, lender and attorney all typically try to work together to look after your best interest and to get the house to close as quickly and smoothly as possible.
0 votes Thank Flag Link Thu Oct 4, 2012
Unfortunately, there isn't a golden number on the days it takes to approve a short sale. It can be quick and it can a long time. I realize the short sale process can be frustrating. You did not mention an attorney - I would advise you to seek their advice into the next step and/or options with regards to the contract if you want to walk away from it and not interested in waiting it out. You're still under 90 days and that is "typically" the standard SS wait time expectation. Some go shorter and some do go longer.
Flag Thu Oct 4, 2012
its a short sale through bank of america and we signed the contract 8/24/12 and were told by the sellers realtor that she has a connection with a person at bank of american and can have us closed in 45 days. NOw my rate is about to expire and the lender, my realtor and sellers realtor are fighting about who should pay for the rate extension cause they blame each other. The sellers realtor who said she had a connection now says she has done all she can do I would have never locked had i known we werent BOA approved in SS
Flag Thu Oct 4, 2012
Best to look for a local Mortgage Broker under "Find a Pro in the header of this website. http://www.NaplesRealEstateGuys.com
0 votes Thank Flag Link Thu Oct 4, 2012
I have never seen a BofA "APPROVAL LETTER";
Have you?

The most I have seen, is an Addendum, which acknowledges some minor detail, and starts the proceedings.
The Banks are reluctant to have a human being sign a document.

And, how do you know that they ACCEPTED your offer if you do not have some kind of document?

Good luck and may God bless
0 votes Thank Flag Link Thu Oct 4, 2012
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