Information updated 10/28/10 for Bank of America Mortgage / Countrywide Short Sale files
Contact Information:
Bank of America Home Loans: 1-866-880-1232
All Bank of America Files Start by Initiating the Short Sale File via Equator.com. Accounts are free.
Documentation:
3rd Party Authorization: Bank of America has their own authorization letter that you can download here. While they will recognize an authorization letter from a third party, they will insist the seller sign one on their own letterhead.
Short Sale Application: Here is a copy from one of our recent files. We have modified it for our use however feel free to print, white out my info, and replace your own.
Supporting Documentation:
- Last two months of bank statements for all accounts
- Last two pay stubs (if any) or unemployment benefits letter
- Last two years tax returns
- Hardship Letter
- Documentation of Hardship
- IRS Form 4506-T filled out for the last 2 years of tax returns
- HUD-1 closing 60-90 days from the date of contract.
- Listing Agreement
- Sale Contract
- You will need the date of birth for the buyer and the first 5 digits of their social security or TIN.
Timelines for Short Sale Approval
- Traditional short sales 5-16 weeks for approval
Tips for Working with Bank of America
All files start on Equator.com where you will click Initiate a Short Sale, The Equator system has an internal scorecard that ranks how quickly you complete your assigned tasks. When working a traditional short sale, open the file in Equator once you have a contract on the property.
Also, direct your clients to the Bank of America Client Portal where they will need to upload supporting documents. They will need to call 1-866-880-1232 to request a login that is sent to their email. The process is janky so you, as the agent, can upload their documents through the system under the Library tab - Property and then name the documents what they are. Make sure they are separated out - not clumped in one file (i.e hardship letter, last 2 pay check stubs, last 2 bank statements, Form 4506). If you are uploading the file, submit a note to "NEGOTIATOR" stating that you have uploaded the documents and if more is needed to request the required task.
Equator is a VERY easy system to use as long as you know the tricks. First, there are not enough pre-defined fields for most real estate closings. Therefore, use the additional fields for items like pro-rated property taxes, HOA fees, transfer taxes, etc. Make sure EVERY fee from your HUD is accounted for on your Equator worksheet.
Make sure your uploaded documents are clear and legible. Many files have been declined by sloppy uploads.
Smart real estate agents perform a title search at the time of listing to identify any secondary liens that will need to be addressed. BofA is notorious for not paying exorbitant late HOA fees therefore it is critical that you have a plan to address this issue.
Communication is handled through the Equator system as well. If you are not getting a response from the "NEGOTIATOR" role within 3 days, resent the email and include "TEAM LEAD" role.
Contracts are handled only one at a time with Bank of America. Therefore, have the seller sign the contract prior to submission to Equator.
All contracts must be within 15% of market value as set by the bank. Offers for less will be rejected. For sellers and agents, it is best to try and get as close to FMV for your house as possible as, with every short sale,
Bank of America has a short sale resource center to assist agents with their short sale files along with recorded webinars, handouts, and more.
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