I have been in the same short sale transaction for the last 7 months. My wonderful clients have been most patient and understanding but now are reaching the end of the proverbial rope!
About a week ago my client sent me the 13 Stages of a Short Sale and asked me what stage of the short sale transaction did I think we have reached. I was surprised that such a list existed but then learned from my client that she loves to read blogs and that is how she found this time-line for BofA Short Sales.... thought I'd share it here. It might make good material for a stand up Realtor comic.
Posted by a blogger who goes by "Long Sale" - here's the "unedited" list and why it's taking 7 months of waiting for an approval from the bank.....
1. Stage 1 – offer given on the property which the seller accepts
2. Stage 2 – Seller’s agent prepares a short sale package which includes (a) Past 2 years of Sellers income tax, (b) 2 months of bank statement, (c) hardship letter, (d) YTD paystub, (e) purchase agreement, (f) .. etc.
****Since alot of documents are needed and multiple parties are involved chances are time may have been waste in gathering the documents ****
3. Stage 3 – All the documents are submitted to Bank of America.
4. Stage 4 – It takes 15 days for Bank of America to scan the documents into their system.
5. Stage 5 – Usually wait 1 and a half month to be assigned Phase 1 negotiator.
6. Stage 6 – Phase 1 negotiator ONLY reviews that all the documents are in file. This will take 30-45 days.
7. Stage 7 – Phase 1 negotiator then submits the file over to Phase 2 negotiator.
8. Stage 8 – Phase 2 negotiator has 30 business dates to review the file. (If no response within 30 days than instruct sellers agent to have the file escalated for review) Negotiator 2 orders the BPO and if one was ordered before he/she will again order a new BPO if it is older than 60 days, requests an updated: (a) sellers past 2 month banks statement, (b) YTD pay-stub (c) 2 years of income tax documents (AGAIN) (d) buyers – bank statement – ability to pay, social security number, date of birth, agents license number .. etc.
9. Stage 9 – Buyer and seller submits the requested documents
***Although you can submit your share of the documents you cannot be sure the Seller will submit his documents on time. So usually time is waste until the other party submits the documents – 1 to 2 weeks ****
10. Stage 10 – Takes 15 days for the documents to be scanned into the Bank of America system. On the 16th day the Phase 2 negotiator then reviews the file again.
11 – Phase 11 – Negotiator than submits the offer to the Investor for review.
12. Stage 12 – Investor has 45 days from receiving the offer to approve or deny it or counter off it.
13. Stage 13 – If approved then must close within 30 days.