What is the opionion of Bank of America in the short sale process??

Asked by Vonniescot, 92882 Sun Nov 29, 2009

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, ,
Wed Dec 30, 2009
Vonnie, you gotten some pretty good information in the previous answers. BofA has announced they will be automating their short sale process (including decisioning) through "Equator". I believe they are just ramping up now, so it might take a little while.
Keep an eye on my blog (link below) as things become available I will be posting.
Good Luck!
Web Reference:  http://firsttimehome.us
0 votes
Bonnie Scrib…, , Fullerton, CA
Sun Nov 29, 2009
In response to the previous posting, the Bank of America Home loans has indeed opened their first walk-in office at the corner of Imperial and Kraemer, next to Trader Joe's at the site of the previous Countrywide Home Loan building at the far-west end of the center. Actually, they are a pilot program and do not have loss mitigators or asset managers on site. They are purely there to talk with you about alternatives and help you with the paperwork. They have told me that they will not facilitate a short sale. It would be great if they would, but they don't. I work with the local loan center, and the director of that loan center told me about it a few months ago. I have had to have some of my files scalated to the chairman's office of BofA because they kept losing paperwork, short sale packages, etc. Frustrating when you have to resend 100s of pages because they can't find them. If the bank already has a short sale package submitted, there's really nothing that this office can do. It even takes awhile for them to assign the case to a specific loss mitigator. Expect several months to get the process through. As I said in the first posting, good luck!

I wish someone would ask me how to do a short sale-- I think that the banks should be required to perform a BPO and agree to the short sale price at the very beginning, then allow us to post the listing and get a buyer. It would speed up the process immensely, cost much less in manpower/womanpower to process, and end up in a much higher success rate for the banks and sellers. If anyone knows where/how I could pass this idea on, let me know! Bonnie@BonnieTheRealtor.

There are articles that say that they would rather foreclose than short sell, and that frightens me.

Otherwise, I've had cases where the price was set at an appropriate level considering the market at the time, but by the time the BPO is done (four to five months later) there are different comps and higher prices, so buyers are being asked to raise up their offers and then walking away. It's not uncommon to go through 2-3 buyers in a transaction while the banks take their sweet times.

I wish someone would ask me how to do a short sale-- I think that the banks should be required to perform a BPO and agree to the short sale price at the very beginning, then allow us to post the listing and get a buyer. It would speed up the process immensely, cost much less in manpower/womanpower to process, and end up in a much higher success rate for the banks and sellers. If anyone knows where/how I could pass this idea on, let me know! Bonnie@BonnieTheRealtor.

I'm not a genius, but I am an award-winning REALTOR, and this just seems like a slam-dunk great idea to me! I'm not sure I even want any more short sale listings because they are a huge headache. By the time it's done, almost no-one is happy with the outcome. Buyers are frustrated with waiting, sellers don't want to take promissory notes, and agents spend hours and hours with no return at times if it falls through. ARGH!
1 vote
Bonnie Scrib…, , Fullerton, CA
Sun Nov 29, 2009
I have to preface this by saying that I absolutely love BofA. I work with them, and have complete confidence in the loan officer that I work with. She is awesome.

That being said, I have found their short sale process to be absolutely FRUSTRATING. As a clue: If you google "bank of america short sales suck," you will receive over 55,800 hits. I was recently at a conference in Florida for C21 top agents, and the resounding consensus was that their system was among the worse to deal with. They are switching to an online system the beginning of 2010, but having tried that on one of my transactions, it was finally pulled and put back to a person.

In comparison, 14,900 for Chase, 55,400 for Wells Fargo, 5,500 for CitiBank, and 1,050,000 for generic "short sales suck."

In other words, good luck. Make sure your agent is diligent in following up with the bank(s) and providing all the information they request in a timely manner. Also, since your agent is working for you, they should send only ONE offer into the bank and mark the listing as "pending" or "back-up." Otherwise, they will just delay the process that much more.

Hope everything works out for you. B
1 vote
solis93, Home Buyer, Portland, OR
Thu May 16, 2013
I have been waiting close to a year to close on a short-sale owned by BOA. I have just told them to shove it.

The previous owners NEED to get out of that house to start their lives elsewhere, and I feel sorry for having to pull the plug. I think a year is a reasonable amount of time for the "escalation process" to have been engaged 100 times over.

Clearly, BOA has seen the housing market improve, and they are going to do whatever it takes and screw whoever they have to in order to get as much money as possible.

Wish these people would go to jail already.
0 votes
Lydia Kray, Agent, Corona, CA
Tue Dec 8, 2009
B of A and others are working on standardizing the shortsale process.
0 votes
kathryn dav…, Agent, Corona, CA
Tue Dec 1, 2009
Bank of America short sales aren't the worst out there. I have found them decent to deal with, they are so overloaded with foreclosures and short sales that they know that they need to be more cooperative and agree to more short sales. Its just a matter of having an experienced agent who knows how to play their games back to them and present the short sale facts in a precise manner.
0 votes
x, , Hawaii
Sun Nov 29, 2009
Hi Vonnie,

I agree with everyone who has written before me. They do have a bad reputation. But, I do think they are getting a little better.

If the seller is still in the initial stages of a short sale it could take quite awhile to get through but that's true for many other banks also. A short sale that has already been approved then lost their buyer can go pretty quickly.

Please keep in mind that the price listed in the MLS has not been approved by the selling bank and will not be unless it is the true market value. So, don't let the low listing price fool you.

A little over half of the homes on the market are standard sales and REO's. You may want to focus a little more on those and save yourself some stress.

If you need some help don't hesitate to call - 951-780-7225.
Linda Christopher, Realtor
Keller Williams Realty, Riverside
0 votes
Connie Bramb…, Agent, Rancho Cucamonga, CA
Sun Nov 29, 2009
Hi Vonnie,
As stated by other Realtors B of A has been tuff up until now. I have been told by B of A reps that just a couple weeks or so ago they opened a new office with the express purpouse of doing short sales and loan Modifications. I think if B of A is involved it would be best to talk to those people first. I don't have the address but as I understood the conversation it is in the complex across form my office which is at Kraemer and Imperial Hwy. in the city of Brea. In the Albertsons center. Wish I had and address or phone for you, that is the best I can do! Stop in and talk to them or have your agent talk to them!
Connie Bramble
714-337-8718
0 votes
Linda Slocum,…, , Santa Clarita, CA
Sun Nov 29, 2009
BofA does tend to be slow in their short sale approval process.

Things that can make it even slower are:

* Submitting additional offers. They usually will completely restart the process for each offer submitted, removing the first offer from processing and replacing it with the new offer.

* Submitting an incomplete short sale package. Work with a qualified Realtor, preferably a Certified Distressed Property Expert (CDPE) who understands the short sale process and knows how to submit a complete package. If your Realtor requests information from you as the seller, be sure to provide it. As the buyer, you'll need to provide a pre-approval letter from your bank, proof of funds needed to close (down payment and closing costs) and proof of your FICO scores.

* Follow up is very important. Be sure that your Realtor follows up on a regular basis to make sure that the sile is moving along, and to provide any additional information that the bank requires.

Remember that the bottom line in short sale processing is that you're dealing with people, not just the bank. Some are better trained than others, and some are more motivated than others. Some will get a short sale file processed as quickly as possible, others will watch the calendar and won't touch a file until the day before their processing deadline.
0 votes
Grace Hanamo…, Agent, Cupertino, CA
Sun Nov 29, 2009
Hello Vonnie and thanks for your post.

B of A, in particular, seems to have some of the longest lead times in processing short sales and they are well known for the "three phase" process of handling short sales. If the area where you are planning to buy is not short sale "heavy", then you might see a response in 90 days (their best and fastest times) and if there are a number of short sales in the area, the approval period extends out to 4-5 months--leaning more to the 5 month mark.

The best method of working with B of A is to work with a listing agent and short sale negotiator with a proven track record in working with B of A. Otherwise, you might find the process of working with B of A to be far more frustrating than you may be prepared to endure.

Good luck!!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA
0 votes
Anna M Brocco, Agent, Williston Park, NY
Sun Nov 29, 2009
Short sales are not guaranteed and any bank can accept/reject/counter--there really isn't such a thing as one bank faster than another--unfortunately, the short sale process can be lenghty no matter what bank is involved and in some cases it may be two.

Anna
0 votes
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