How long does a Bank of America short sale approval take?

Asked by Muffinsaregood, Los Angeles, CA Thu Jun 14, 2012

My parents put in an offer for a short sale on May 18, 2012. How long should it take? I know they've speeded things up a bit but does anybody have any experience since their April (when they said they wanted to limit their s.s. decision time to less than three weeks) change?

Also the mortage lady (sorry don't know the proper name) said there was another offer on the house as well but she informed us we had a better credit score. Can the bank accept other offers instead and not ours?

Another detail that I found quite weird was that the listing agent (also our realtor?) said "I know the bank will take X amount". So she basically chose the offer for my parents. Is that peculiar? Also, should she be informing us of how the process is going? We've tried calling her each day for the last week and she doesn't answer, or could it be she just doesn't have any new information.

Sorry for all the questions but we really want to buy this house.Thanks for any information.

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13
Bill Byrd, Agent, Larkspur, CA
Sun Jul 21, 2013
These are all Great Questions.

Most short sales time tables are dependent on the ability of B of A to contact and communicate with who actually owns the note. B of A has thousands of loans they are servicing and during the refinance boom that got us into this trouble , paper work of who owns what was not always kept or organized. So this adds time to the process and if B of A does not own the note they will leave the short sale in limbo until the find out and receive instructions.

Next is most short sale realtors prioritize. If you are a new short sale in contract the realtors hurries and submit the package to B of A and then they wait and wait. Many times this affects there clients communication by not making it a priority to return you call and stating the same thing over and over. I have heard nothing.

It is not common in a short sale for a realtor to represent both sides, but it does happen sometimes. As the the agents knowledge of exactly what the bank will take that is just not true. Banks often change there mind. The thing to note is are there fewer homes in your price range,age, size now as opposed to when you submitted your offer to Bank.

Short Sales are difficult and very emotional. But more times than not I have found they work out and close.
1 vote
As an agent of Coldwell Banker. Let's say I have the listing of a home for "X" number of months but we are unable to sell the property for more than it is worth and we have lowered the price a number of times. If the buyer goes into a short sale situation with Bank of America, will I still be able to keep the listing?
Lynn
Flag Thu Jul 27, 2017
Michael Shus…, Home Buyer, Davison, MI
Tue Jul 9, 2013
There is probably no worse bank to deal with than Bank of America. We have been sitting on a short sale since the end of March 2013. As of July 9here is still no end in sight. As a matter of fact, the bank hasn't even ordered an appraisal on the house yet. Last I heard they were still forcing the seller to go through mortgage modification proceeding, which by the way they already denied once. As of 1 month ago they were supposed to be in underwriting of that process which was supposed to take 1-2 weeks. That was 4 weeks ago and still nothing.

I cannot say enough bad things about Bank of America and their processes on short sales. I would assume they actually work there, but I have seen nothing that lends me to believe they are actually doing anything. If you are dealing with BoA on short sale, you better have nothing but time on your hands. It will take forever.
1 vote
We started a SS with BOA in Feb and its now mid July, last thing we heard was a BPO was done back in late may or early June. We are still waiting to hear how that went. The time limit on our HUD runs out July 31, and I dont think we are going to wait any longer. We have been thorugh 2 negotiators and neither seem to really want to move naything along. Maybe its the buyers dragging their feet, but they moved out almost a year back. Its really a shame becasue our funding is ready to go and all we need is a green light, nice property, but its gonna fall to crap the longer everything sits! #BOAFAIL
Flag Fri Jul 12, 2013
nightwolfdre…, Home Buyer, Los Angeles, CA
Fri Jun 14, 2013
Lets put it this way:

Offer Jan 3rd 2013
Acceptance from BofA May 5th

Current date June 14th - no acceptance letter yet even though they have accepted our offer and are now over their 30 period dictated by HUD.

So yeah, 45 days my ass.
1 vote
The same thing is happening to myself and my husband now. We made an offer Feb. 04, 2013 it was accepted by BofA on May May 15, 2013. We have had an inspection (200.00) and a home appraisal (470.00), the appraisal came back for more than they were asking and now they want the appraisal amount, they are saying the seller can NO LONGER pay closing and that he can not pay the one year home warranty that we have agreed to already.

Dealing with BofA has been a joke and we are walking away from this property! Good luck
Flag Sun Jun 16, 2013
Maria C. Gom…, Agent, Los Angeles, CA
Fri Jun 22, 2012
Bank of America has improved their Short Sale process making the transaction faster and smoother. Bank of America is always posting updates in their website http://www.bankofamerica.com in regards to Short Sales. Your Realtor should be able to answer your questions, as she is handling both sides. Buyer and seller.

Best
1 vote
Maria, you are full of crap. Bank of America has not improved their short sale process. At least if they have, they were the most inept people born. We began the short sale process April 4th of 2013. We are still not in the house as of January 30, 2014. The approval to participate was issued in November, yet nothing. Apparently people at B o A don't actually work.
Flag Thu Jan 30, 2014
Sara Mehrpou…, Agent, Los Angeles, CA
Fri Oct 11, 2013
0 votes
Ted Pappas, Home Buyer, Huntington Beach, CA
Mon Jul 8, 2013
I will tell you my experience:

1 - March 2013 put in an offer on an approved short sale.

2 - B of A changed negotiators 2 times during the acceptance process.

3 - Early June offer was excepted giving me exactly two business days to close the deal. (impossible)

4 - Sent through an Addendum to extend the date. B of A did not sign Addendum.

5 - B of A changed negotiators 2 more times.

6 - B of A extended the contract date further but did not sign the release.

7 - Still waiting for B of A to sign the release. All my paperwork has been ready to go for over 3 months.

Adjectives that come to mind regarding B of A: Dishonest, immoral, corrupt, inept, unethical,incompetent, disingenuous, Obama-nomics, banksters, etc.

Those who have said that B of A has improved their short sale process, making transactions faster and smoother has got their head up their butt. No offence!
0 votes
lorinero, Home Owner, Fort Lauderdale, FL
Mon Oct 15, 2012
hello folks! here is my question:

my long time neighboor has to sell his property in the same complex where i live, he had lost his job and has not found a place to live.
i got two buyer documents from his agent at the time with my name mis spelled, then she flew to peru and had failed to contact him. since then he has tried to find work and failed.
he hired an agent with remax in florida. 4 days ago he signed a contract with a buyer, which has not been executed with copies not had been approved yet by bank. he now wishes to withdrawl and sell to me. as close friends he expressed to the agent that i will allow him to live there and store all his stuff until he finds work and a new home. the agent said he has been in real estate for 15 years and wishes he knew 7 days ago, however the seller told him e-mail 4 days ago,
the seller expressed his change of heart and the agent said he will try to help.
what rights does he have to accept my offer? and do i need a lawyer to draft a letter on his and my behalf? mainly.. can he opt out after signing? is there not a 30 day law?
please help!

regards,
a loss for words lady
0 votes
It sounds that seller made a mistake by not position your offer first to the new agent.
Flag Mon Oct 15, 2012
Kawain Payne, Agent, Seal Beach, CA
Fri Jun 15, 2012
Hello,

Bank of America has gotten much faster at approving their short sales. The process can still take anywhere from 30 to 45 days, and in some cases even a bit longer.

In a short sale the agent representing the buyer should stipulate in the offer that the seller is to submit no competing offers to the bank, but can accept back up offers.

Now since your agent is working as a dual agent I hope he/she did that for you.

Is the agent doing the short sale co ordinating or are they using a SS negociator? If the agent is doing the short sale he/she should be able to answer your questions in a timely manner. If the short sale is being handled by a SS negociator the agent still should be able to keep you informed.
Sometimes the agent will have no new information for you, but they should still stay in contact withyou and provide status reports.

As for being able to tell you the exact amount the bank will take, unless your agent has some REAL inside information, it is hard to say for sure how much the bank will accept, prior to actually recieving the SS approval letter.

Best of Luck to you,

Kawain Payne, Realtor.
0 votes
Sara Mehrpou…, Agent, Los Angeles, CA
Fri Jun 15, 2012
Hi there,

Unfortunately, there is no concrete response time on a short sale. They usually take about 45 days to respond on average. Also, if there is a second loan on the property that is with a different lender than the first, it may take longer at times.

Usually, the seller accepts one offer and submits that offer to their lender for the short sale. If your offer was accepted by the seller, you should have a signed & executed copy.

Try to keep good communication with the agent handling the short sale-- they will have the direct contact with the short sale lender.

Good luck,
Sara Mehrpouyan CDPE
Short Sale & Foreclosures
Rodeo Realty
Direct 818-903-2040
Dre License #01712757
http://www.short-sale-vs-foreclosure-help.com
0 votes
Kathleen Bec…, Agent, Santa Monica, CA
Fri Jun 15, 2012
Hi Muffin:

Bank of America is very slow in completing their short sales. It could take 3 to 6 months for the approval. Hopefully, your approval will go quickly.

Check with your agent to see if she has the short sale approval already...that would speed up the process. Sorry she does not answer or return your calls. Try e-mail.

Once the seller signs the contract, and there is an accepted offer, the agent submits the accepted offer to the bank. The bank will then negotiate the offer and then accept, counter or decline it.

Generally, no other offers will be accepted until either yours is declined by the bank, or you back out. They can look for back up offers.

Your parents must be patience if they want this property. I personally have a listing in which i have had an accepted offer since February 21st, 2012, and Bank of America is till working on it. Im hoping to have a full short sale approval on it within the week. It's only been 4 months.

Just hang in there!

Good luck and all the best,

Kat Becker, Realtor
Prudential California Realty
katbecker@prula.com
0 votes
Douglas Perez, Agent, Los Angeles, CA
Thu Jun 14, 2012
Hello Muffinsaregood,

1) Still, It is unclear the time for a lender to get a short sale approval.
2) Once the lender received complete short sale package, lender orders a bpo or appraisal. So it does not matter what price was submitted, lender will either accept or counter offer the price.
3) You really need to find out whether this realtor is representing you. For a buyer basically, there's three representation agencies: (a) buyer's agency, (b) dual agency, and (c) on your own without representation. You need to find out this.
4) You must get copies of all documents signed by all parties involved, and have them revised by a real estate professional or a real estate attorney for clarification and understanding.

Since you really want this property, you really need to understand the process and work with your agent and your loan agent all the way.

I hope this help you.
0 votes
Sona Gallatin, Agent, Santa Clarita, CA
Thu Jun 14, 2012
Was your offer accepted?
Listing agent is the sellers Realtor, you should have a buyers agent.
Agents should keep their clients posted on updates, but often they don't.
I am in escrow with a Bof A SS for my buyers since March, we are just getting close to an approval. You can never tell how long it will be.
0 votes
Emily Knell, Agent, Huntington Beach, CA
Thu Jun 14, 2012
Starting from May 18th, if there is only one loan with BofA you should get a response to your offer from BofA no later than July 23rd & this is assuming that the ENTIRE short sale package including all of the seller's financial information with nothing missing was turned in, also on the 18th. 55-65 days is my avg. & the majority of my short sales have been with BofA.

As far as BofA "speeding things up", I've been hearing this load of BS for the past 3yrs or so, it seems to me it takes just about as long as it ever has. BofA is NOT approving brand new submission short sales in 3wks like some smaller lien holders. Any talk of 'speeding things up" is just too look good in the newspapers & to gain favorable public opinion from struggling homeowners.

As far as the listing agent stating "I know they will take $x", well, maybe she's confident to make a statement like that. I'll never say with 100% certainty to anyone what I think the bank may take. I'm happy to offer my professional opinion on a probably range in price, but never an exact figure.

For added security in knowing that YOURS is the only offer being submitted to the bank, write on a word document or in an email to your Realtor exactly this & tell her to put this onto a CAR form addendum for you & have all parties sign it.

"MLS to be changed to Back up offer or Pending status immediately, any offers received by listing broker after ours will be held by listing broker and NOT submitted to the lien holder(s), all back up offers to be held unless or until the offer from (enter buyer's name) rescinds their offer, lien holder(s) counter at a price or terms that are unacceptable to buyer(s) or lien holder declines buyer's offer entirely. ""

Shoot me an email directly if you'd like to talk to me some more. I don't look back on this same Trulia thread for answers posted after mine.


EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Main Street Realtors
BofA Short Sale Expert - I can prove it too!
0 votes
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