Home Selling in 97229>Question Details

Sandra, Home Buyer in 97229

I'm a buyer of short sale approved by Bank Of America (Equator), inspection is done but appraisal came short of listing price. Appraisal report

Asked by Sandra, 97229 Sun Apr 11, 2010

has been sent back to investor. I want to know
1. How much time does it take to hear back from investor
2.What if we don't hear anything close to the 'closing date' specified in equator ?

Help the community by answering this question:


If the listing is through Equater I find it easier to deal with than the traditional call made on a daily routine. I would have your agent that you are represented by, prepair a CMA and have the listing agent send it to the negotiator, secondly I would ask them to do a BPO [Broker Price Opinion]. As long as you are within the BPO their is no reason for the bank to not go forward with your offer. You may also send in a addendum increasing the price by a bit.

Click for more information: http://reohomes.org/bank-of-america/
2 votes Thank Flag Link Wed Jun 10, 2015
Hello Sandra,

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
0 votes Thank Flag Link Mon Apr 12, 2010
Hi Sandra the appraisal coming back low could be a real problem as the bank has set a price they can work with. One you may have to make up the differance if you really want the home hopfully your realtor put in an appraisal addendum that will give you a way out of contract. Having a negotiator should help with time line you may have to sign an extention to contract or just let it expire and move on. One other thing you might try is get a second appraisal. You may want to seek legal advice as to your best way to resolve the problem if you want out of contract. good luck
0 votes Thank Flag Link Mon Apr 12, 2010
Now that the appraisal has been sent to the investor.I have been through many short sales. It should take 1-2weeks to get a response but the person authorize needs to call the negotiator every other day because you need to stay on top of the negotiator
.Push Push Godd Luck
0 votes Thank Flag Link Sun Apr 11, 2010
The "investor" may be 25 different hedge funds, even foreign governments.

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.
0 votes Thank Flag Link Sun Apr 11, 2010
Hi Sandra,
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.
0 votes Thank Flag Link Sun Apr 11, 2010
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