Home Buying in San Jose>Question Details

Rock, Home Buyer in 95138

i signed an arms-length affidavit on a short sale property. How long to approval or counter from bank of america? The seller is using the equator

Asked by Rock, 95138 Wed Aug 24, 2011

Help the community by answering this question:


To vsurujpaul:

Thank you for your response. Is the short sale that you are dealing with today, the same as the short sale that you were dealing with last summer?

If it is the same short sale, there is definitely something wrong somewhere. The market here in silicon Valley ahs become a seller's market. the Fair Market Value of Real Estate is going up rapidly.

I recommend that if you have not already started, that you begin looking for something else immediately.

If you find something else, i recommend that you grab that and cancel this offer. If you have been working on this short sale since last summer that is too long to wait. Your best opportunities are passing you by, and there is no guarantee that this short sale will close at your agreed price.

As I recall, this lender already has tried to get you to pay far more that the price that you had agreed to and far more than the appraised value.

If this short sale lender has done this to you once, there is a good chance that this short sale lender will do this to you again.

The best way to combat this sort of bad faith behavior that many of the short sale lenders engage in, is to be very proactive about finding something else, and buying something else, and canceling your offer with the short sale lender that has been stringing you along for months.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269=3597
Email Address: charlesbutterfieldbkr@yahoo.com
1 vote Thank Flag Link Tue Apr 24, 2012
I just spoke with my negotiator a few minutes ago and she told me that the bank was requesting additional information from the seller and they just submitted it today.
She also mentioned that some of the items that was sent a few months back wasn't clear and that they needed clear copies.
Does anyone ever encounter this with B of A? Are they pushing us around?
Do you think they start over from the beginning?
I know Bank of America now has a new system where they are are now approving or denying offers within 20 days.
I have a feeling that they start over new since they asked me to sign the Buyer's Acknowledgement and disclosure form early last week.

Any insights..............
1 vote Thank Flag Link Tue Apr 24, 2012
Hi Rock:

But as you mentioned you used a Negotiator, it does not work with some Banks.


The market has gone up since August 2011, and the Lender/s, B of A and any other will ask for
a higher Sales price, they stalled you it seems.

In our dealings with BofA, now a days it does not take more than 90 days.

Let us know if we can help.

P Mistry

1 vote Thank Flag Link Tue Apr 24, 2012
Jose.... Thank you.
Question: Is the buyer's acknowledgement disclosure form and the arms lenght the same thing?
I signed the acknowledgement form two weeks ago but heard back nothing from the negotiator.
What is your suggestion: Should I hold on for another couple of weeks or what?
1 vote Thank Flag Link Tue Apr 24, 2012
Paul, I think it is a good idea to go and look for something else. There is something definitely wrong on this short sale.
FYI. not all short sales are the same so here is something that you may want to find out (ask) before you decide to wait on the short sale.

1. How many mortgage liens against this property?
*The more liens against the property, normally the longer delay
2. Has the short sale been pre-approved?
*In many cases the short has already been approved.
3. Is the listing agent experienced in short sales?
*You won't believe how many agents out there have no idea of what their doing. It wastes
everyone's time. I constantly have agents calling and asking me questions regarding their short
4. Oh, and who are the lenders on these property?
* In most cases, most lenders takes 2-3 months to get approved but Bank Of America is well
known for been the slowest.

PS. If you no longer want to deal with another short sale, currently there are far more short sales than bank owned so you choices on properties are less.

Good luck and feel free to shoot me and email if you have any questions.

Jose Adame
1 vote Thank Flag Link Tue Apr 24, 2012
I'm sure you closed on your deal. How was your experience?
Have you ever contacted B of A for any reason during the process?
1 vote Thank Flag Link Tue Apr 24, 2012
I'm walking away.... and will be looking for something else.
Is the buyer's acknowledgement disclosure form and the arms lenght the same thing?
1 vote Thank Flag Link Tue Apr 24, 2012
Unfortunately there is no way to predict the chances of approval. It depends on the negotiator assigned to your file and the loss the investor behind the mortgage is willing to take.
I have successfully bought a house on short sale and it needs a lot of patience. 10 months is a lot of time and it is your personal decision when you want to call it quits.
1 vote Thank Flag Link Mon Apr 23, 2012
Thank you so much for the reply Jose.
I really like the house and that is the only reason we are holding on to it.
I will wait another month and if nothing happens, I will walk away as it will be 10 months.
I called BOA and ask some general questions and they told me that the BUYERS ACKNOWLEDGEMENT is not the arms lenght affivadavit, it is just to say that the buyer is not an employee or officer of the bank trying to buy the property.
I am so tired of the wait, I am very very tired and frustrated.
They listed the house for 325k.
My appraisal come is at 245k.
I offered 224k
I have to do repairs totaling app. 20k
BOA wanted 290k on 3/16/12 - i said NO i am not buying it for that price. My bank would never give me a mortgage for more than the house is worth. Would you agree?
I am the only person on the table right now.... Do you think they would accept my offer and approve this deal?
Please please advise.... Thanks all
1 vote Thank Flag Link Mon Apr 23, 2012
Who's doing your negotiations with BofA?
There is a fall out somewhere, it could be with the negotiator or with whoever is doing your negotiations. I've never had a short sale taken that long. In most cases is between 2-3 months with a few that has taken less than 45 days and a few up to 4 months.
Regarding you offer, I really think they will take it since should have showed proof of value.
Keep me posted, I'm very interested to see a good ending to your situation.
Flag Mon Apr 23, 2012
9 months is highly unusual for a short sale. Sometimes this happens when you get assigned a lazy negotiator to your case.
I don't believe anyone can give a right time frame on your questions, in my experience the short sale approval is generated within two weeks after signing the acknowledgement but it will depend how good the banks "negotiator" is.

I wish there was uniform time line for short sales but as of now, it is up to the bank to decides how quickly a short sale is approved but 9 months is very unusual.

It is getting better though, I just had a short sale approved within 30 days with Bank Of America.

In addition, you should hold on tight to that property as the housing inventory level is very low right now which has turned the market into a "seller's" market.
1 vote Thank Flag Link Thu Apr 19, 2012
I found a house and made an offer since August, 2011. I hired a negotiator in mid November to get me the deal.
I have my mortgage committment and is now waiting on Bank of America (seller's bank) to accept my offer so we can transfer title.
On March 16th, Bank of America wanted 66k more than my offer and I was going to walk away as the house is only worth 245k. My negotiator sent in contractor estimates and my appraisal to the Bank with hopes that they would re-consider my offer.
On April 9th, I was told that I need to sign and return as soon as possible the" BUYER'S ACKNOWLEDGEMENT & DISCLOSURE FORM" I did that immediately and sent it to my negotiator.
Question: Do you think this is the beginning of the short sale by me signing that form or is it near the end of getting an approval.
Waiting 9 months is way too long and I am in the process of walking away and day now.

Any help and feedback would be greatly appreciated. Many thanks
1 vote Thank Flag Link Thu Apr 19, 2012
Good to hear that Rock. Just for the record not all short sales take this much time. You almost there, keep on going!
1 vote Thank Flag Link Tue Nov 1, 2011
We got the extension on 1st loan upto 11/18 yesterday. We are all set to close in less than a week. Thanks to all of you for the answers and support. SS needs good amount of patience....
1 vote Thank Flag Link Tue Nov 1, 2011

If the Bank is asking for a commitment letter, don't wait for your loan agent (I believe you said is with Bank Of America) for a commitment letter. Just talk to your real estate agent and write up a letter stating that you are committed to purchasing this home. I've had short sales where the bank ask for a commitment letter from the buyer and I just instruct my fellow realtor to write up a letter, if I representing the buyer then I normally help my client with that letter.

Congratulations and feel free to contact me if you or your realtor have any questions

Jose Adame
Foreclosure Specialist
Broker | Founder

P 408-292-3000 F 408-273-6038 http://www.JoseAdame.com
1 vote Thank Flag Link Mon Oct 24, 2011
Hi Rock,

Congratulations...it's going as it should. I'm sure you will get this done and closed. Thanks for keeping us all informed, not everyone does and it's nice to see the progress.

1 vote Thank Flag Link Mon Oct 24, 2011
The first bank is requesting a loan commitment letter from my lender to extend their approval to 11/18.
I am trying to get the letter and it has been slow.. My Lender is also BOA!!
1 vote Thank Flag Link Mon Oct 24, 2011
received approval on 2nd Loan today with closing on 11/18. We have to try to extend closing date on 1st approval from 10/21 to 11/18.
1 vote Thank Flag Link Sun Oct 9, 2011
You can't closed until you get both 1st and 2nd approvals. The listing agent mostly will ask for an extension to Bank of America until 2nd is approved. You should still be able to get 30-45 days closing time once both have been approved.

Feel free to contact me for any questions. I've closed over 200 short sales and know the short sale process inside out.

Jose Adame
Certified Foreclosure Specialist
(408) 315-6320 Direct
(408) 273-6038 Fax
1754 Technology Dr., Suite 122, San Jose, CA 95110

Find Beautiful Home Listings at http://www.iLoveThisHouse.net

Best BANK FORECLOSURES deals!! Simply go to http://www.BankForeclosuresCA.com, FREE List with Pictures Now.
1 vote Thank Flag Link Mon Sep 26, 2011
got approval from 1st waiting on approval from 2nd mortgage.
Approval from BOA indicates closing has to be sept. 29. How can we close in a week and that too without approval from 2nd yet.
1 vote Thank Flag Link Sat Sep 24, 2011
it has been 2 weeks(accepted sept. 1) since i accepted counter offer from BOA and no approval yet. I hope my experience is similar to Grace Morioka below then i should get the approval some time next week.
1 vote Thank Flag Link Wed Sep 14, 2011
That's good news. Bank of America is known to counter but you should get an approval.

Once again, congratulations!
1 vote Thank Flag Link Tue Aug 30, 2011
Got counter from BOA today at slightly above offer. 25days from offer to counter... not bad.
We will try to see if the bank will accept the middle number.
1 vote Thank Flag Link Tue Aug 30, 2011
Thanks for your answers. It was informative. I found out from my realtor that appraisal by bank was complete...Hopefully will hear from the bank in a week or two.
1 vote Thank Flag Link Thu Aug 25, 2011
Hello Rock,

I have closed over 200 short sales since 2007 and done many with Bank Of America. In my experience is that there is no pre-determined time after you've signed the arms-length affidavit.

In most cases I'm on the listing side so when the buyer's agent ask me "when" my answer is "I don't know" because it is the truth. Neither the listing agent or your agent can give you a straight answer. In my experience some have taken as little as one week or as much as 2 months.

Normally it will take longer when the seller has applied for HAFA which is a government incentive to the seller for doing a short sale.

Another reason that time is not possible to determined time is because who and what type of investor is that owns the note: Investors can be a private domestic, private foreign, a note that is in a "pool" or some big company, like an insurance company.

I believe for this reason you've gotten different time lines from my fellow realtors and that is because each has experienced different time lines. On the bright side is that one thing I can tell you for sure that the short sale process has gotten so much better and hopefully your waiting time will brief.

Wish you the best and congratulations on your new purchase.


Jose Adame
1 vote Thank Flag Link Thu Aug 25, 2011
Asking those who are in the know is your best resource That means those closes to your contract.

My recent experience on the Buyer agent side with B of A was a positive one. This being that they had already lost the first buyer, so we had approval in 10 days and closed in 45.

It is exciting to buy a home and the wait can be frustrating. Hold on the the excitement when you found your home and when it closes you can celebrate.

All the best to you.
Web Reference: http://www.terrivellios.com
1 vote Thank Flag Link Thu Aug 25, 2011
The most accurate response you will receive is the one from your Realtor who can check with the listing agent to find out where they are at in the process.
1 vote Thank Flag Link Thu Aug 25, 2011

Unfortunately, the "arms-length affidavit" is but one of many documents that are included in the package submitted to the lender for consideration. There is no connection between signing this document and an expected time of approval. Depending upon the situation and other details, it could be as short as a few days or up to several months.

Good luck,

1 vote Thank Flag Link Thu Aug 25, 2011

I agree with Grace. In my experience with BOA, if you have signed the ALT then you are probably about 2 weeks or so away from the point of approval and or counter.

With Wells Fargo they usually have you sign it right up front so it can still take 4-6 weeks before the approval from Wells.
1 vote Thank Flag Link Thu Aug 25, 2011
Hi Rock and thanks for your post.

If you've received the arm's length affidavit with Bank of America, then you're pretty close to having this approved. My experience has been that this affidavit precedes the approval or counter offer from the bank by about 2-4 weeks.

In my most recent short sale with Bank of America, the arms length affidavit was sent to my clients about 10 days prior to the counter offer being presented by the bank. Once the counter was adjusted and signed, the bank took another 2 to 2.5 weeks to send to us the approval for the sale. Altogether, for this sale, from date the contract was submitted to the date when the final written approval was received was about 45 days. Incredibly fast when you consider that Chase is still taking between 4-6 months to obtain approvals.

Good luck. You should be hearing from the bank soon with a counter offer on the price or an approval from the investor.

Grace Morioka
Area Pro Realty
1 vote Thank Flag Link Wed Aug 24, 2011
Check with your Realtor. Many factors to consider to be able to answer the question
1 vote Thank Flag Link Wed Aug 24, 2011
Who knows!

It appears that this short sale has gone out of norm. I don't believe anyone will be able to tell you as you have been patiently waiting for a very long time.

The norm times on my Bank Of America short sales are between 2-3 months with some taking as little as 3 weeks.

I hope everything goes well...


Jose Adame
Real Estate Broker
Chief Marketing Officer
0 votes Thank Flag Link Thu May 31, 2012

My negotiator was asked by Bank of America to redo the HUD and resend it to them with the appraised value of the house. My offer is for 224k and Bank of America had wanted 290k but now they asked for the HUD for the 245k (appraised value).

Do you think I am near closing?

0 votes Thank Flag Link Thu May 31, 2012

The fact of the matter that one can really tell you how more time it will take. It all changes case by case/short sale to sale. I think you already have good answer here and that most short sales don't take this long.

I'll suggest that yo make a decision based on the information that has already been given to either stick to it or move on.

Just a though,

Jose Adame
0 votes Thank Flag Link Thu Apr 26, 2012
Thank you for your response.
Yes... this is the same short sale I am getting since last summer.
BOA asked for the following
- Buyer's Acknowledgement & Disclosure form on 4/16
- Third Party Authorization form 4/25

I asked my agent if they are starting over my file and she said "NO".
She also said that BOA have a new system and they have to have these information.

Do you think I have a long more wait?

Thanks All
0 votes Thank Flag Link Thu Apr 26, 2012
Glad to hear that you are good to go. Those deals totally test the patience of all involved.
0 votes Thank Flag Link Tue Nov 1, 2011
The Bank of America has been getting better.

In the transactions that our office has had with Bank of America, it has generally been about 30 Days to approval after you have signed documents such as the arms length affidavit.

That is quite an improvement over the much longer times that we had experienced earlier.

However even 30 days is too long.

The banks complain that the prices for short sales are too low.

However the short sale process with the banks has been unnecessarily long and cumbersome.

The result is that it takes a hefty discount to motivate buyers and their REALTORS to even be willing to work on a short sale.

That is the reson that REALTORS point out that a listing is a regular sale not a short sale in their remarks.

Short sales have gotten a very bad name with REALTORS and most buyers, and many REALTORS will not even show a short sale property because in the past the experience with the short sale lenders has been a bad, time wasting experience.
0 votes Thank Flag Link Thu Aug 25, 2011
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