Click for more information: http://reohomes.org/bank-of-america/
The good news is B of A is claiming to be participating as part of HAFA. If you are not familiar with HIAFA, you can read it at this link https://www.hmpadmin.com/portal/docs/hafa/sd0909r.pdf . In addition, last thursday (4/8/10) B of A launched a new campaign. I attended this seminar and will post the results of it below my response. Your questions are answered within what I post.
Have a great day!
Crystal Beard - Lending throughout the State of Oregon
Will respond to offers within 2 weeks if B of A is delegated as the sole decision maker. If B of A is servicing for another investor and pmi is involved, expected turn around time will be 60-75 day or based on the timelines of the other investors involved. In this case B of A will facilitate in working with the investors to be as quick as possible.
Will include programs not typically included in the HAFA such as investment property, jumbos, etc...
Will not request contribution for deficiency (e.g. promissory note for difference of what is owed) on approved transactions
Realtors can initiate a short sale process through http://www.equator.com 24/7 (Be sure to first create an account).
Choose the lender you want to initiate the short sale with
Documents can be uploaded instead of faxing
Upper right hand corner displays counter offer details and in depth information
Can escalate the process if a team lead is not responding within 48 hours
Q & A:
Can the process be started, with B of A, before an offer is received? - Yes, borrowers are encouraged to communicate with B of A before starting the process so B of A can internally appraise the property and be prepared with an offer comes in. .
Who should be the primary contact during the short sale process? Will it help if the buyer's agent is involved? - It is best the seller's agent be the primary contact. It does not help the process for buyer's agent to be involved, it creates a problem when this happens and B of A cannot legally speak with anyone representing the buyer.
How do we find an acceptable contract price? - B of A will analyze an offer. B of A will determine the information up front if the home owner contacts them before starting a short sale process.
How can a realtor become certified to offer short sale listings? Visit http://www.equator.com (task guideline) which provides tips and hints. This site offers an optional certified process for short sale certification (fee based).
How will B of A determine what will be offered on a 2nd mortgage? - If the 2nd is with another lender, the homeowner & listing agent will need to contact the 2nd mortgage holder to discuss how to offer a clear title. For B of A, up to 6%, or $6000, can go toward the 2nd lien under HAFA rules.
How does B of A report short sales on a borrower's credit report?- It will be reported as "Debt has been settled for less than amount owed".
If B of A has scheduled a foreclosure, will B of A entertain a short sale? - If the foreclosure is pending, you can request a postponement. It depends on which investor is involved to know if it will be approved. B of A will try to entertain a short sale.
What is the contact information for information needed? - Support & questions - (866) 880-1232 , to start the short sale process - http://www.equator.com , Education materials- http://www.bankofamerica.reo.com\shortsaletraining
Where are the guidelines for the process? - http://www.bankofamerica.reo.com\shortsaletraining
What is the realtor commissions structure for a short sale under HAFA - Cannot exceed 6% but investor requirements may also have a limit. Minimum of $3000, never below 5% for B of A. If you feel your commission is not fair, you can escalate the concern through http://www.equator.com
.Push Push Godd Luck
B of A probably has guidance metrics on how to proceed, since it appears to be the servicer. The bad part is that servicers get paid even if there's a foreclosure, and they may not get paid if there's a short sale. That's why they don't work all that hard (or haven't--it's getting better).
The good part is that it's B of A. They will want to make this work. Theres no way of knowing how long it will take to hear back, but my guess is that it will be sooner rather than later, especially if the listing agent makes a nuisance of himself/herself. I'm thinking a week or so.
If I were representing you, I'd advise you to set a closing date in stone and notify the listing agent, with your unilateral right to pull the offer. It all kind of depends on your goals.
Well I haven't had this happen before and it doesn't sound like fun. You ask really good questions that I'm sure you need the answers to. One of the most difficult aspects for a buyer of a short sale is sometimes the brutal truth is, you'll know when the bank tells you. Every bank is different and would likely handle it differently as far as potentially going past the close date.
This is a perfect example of why you go into a short sale transaction knowing its iffy right up until it records. There are many parties involved, and you just never know what an investor or bank will say or when.
I honestly don't know what B of A will do, but would love to hear back as to the result.
Best of luck to you and I hope it all works out.