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Bank Of America/Equator... The New Short Process

By Brandon Watson

Real Estate Agent with Team Sandy Blanton Realty, Inc.

February 12, 2010 09:02 AM

So we just listed a couple new short sales in which the lender is Bank of America. We have closed several BOA loans and have several more in process now. We thought ourselves very familiar with their processes BUT the game has changed. Bank of America now has a new system for their short sales called Equator. A basic outline of the new Equator system is outlined below (copied from the instructions they provided us):

Bank Of America Equator

BANK OF AMERICA/EQUATOR

GUIDE

Agent

Log into system at Equator.com using email and password (case sensitive)

Click initiate short sale and put in loan number and address. System will automatically assign a task such as request do you accept or reject handling this property and requesting 3^rd party authorization which will require uploading. The agent uploads the contract sales price and list date when the task "initiate offer" which can be accepted or rejected. If rejected three times in 7 days, the process starts over. Tasks are sent via email but it's recommended visiting the Equator and shortsale.bankofamerica.com site daily. There is the ability to reply to provide information to someone handling the Borrower's loan within BofA. BACI is the one to click in the drop down box when a contract has been rejected. Once assigned to a negotiator, that would be the appropriate choice in communications.

Borrower/Seller

Borrower must call BofA 866-677-2516* to register. They provide their email and are sent a temporary password. Borrower then goes to shortsale.bankofamerica.com (no http, no www) all lowercase and log in. The system will ask security questions and then it enters the site. Equator will assign the Borrower tasks which will most likely be the hardship letter, financial statement and Borrower contact information. These documents will need to be uploaded so it's necessary to already on that information on Borrower's computer in PDF form. Agent can perform these tasks if they have Borrower's login information.

Negotiator/Lender

They are assigned tasks as well.

Equator has no control over decisions made on loans on behalf of Bank of America. They are just the software provider. They do provide technical support on how to use the site at 310-469-9167.

*Subject to change

Our hope is that this system will streamline the process with the notoriously slow BOA. Either way, we're not just learning the new system but working hard to master it to get these short sales approved quickly. Are there any agents out there that would like to offer advice/ experiences with the new system that we could use to benefit our clients? I've heard this change was coming but this is our first real experience with it.We appreciate any information and are always working to improve our service to our clients.

If you're looking for an agent in the Gulf Coast area that knows how to price short sale properties, process them efficiently, and most importantly... close them...give me a call. I sell more short sale properties than any other agent in the entire gulf coast area. I'm not bragging, I'm applying for a job. I want your business and/or referrals!

Brandon Watson of Team Sandy Blanton Realty, Inc. BWatson@TSBRealEstate.com or 850-525-3692. http://www.10dayshortsales.com

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Jeffrey Smith

Author of 'Realtors Guide To Short Sale Success - Eustis, FL

Short Sale Education

Hi, I'm from the government (lender) and we are here to help. Bwa-ha-ha-ha

Feb 13, 2010 12:55 AM

Satar Naghshineh

Satar - Amiri Property and Financial Services Corp. - Irvine, CA

It's not new. We've been using it for 3 months now. It's faster than the old school way. What scares me is that they are asking for buyer agent and buyer info. My fear is that they will bypass me (the listing broker) and go directly with the buyer and buyer's agent.

Feb 13, 2010 04:25 PM

Luis Salas

Better Homes and Gardens Mason-McDuffie Real Estate - Antioch, CA

You can always provide YOUR phone number (instead of the buyer's) or the Selling Agent. Some questions are very intrusive. For instance why do they need to knwo the first 5 digits of the buyer's SSN?

The problem with this is that once you enter the info and it goes for the Negotiator to look at it... you never hear from them again...

One thing is for sure, banks have no motivation to resolve short sales and even less motivation to do loan modifications... the one losing here is the investor. Problem is, many investors don't know they are investring in Mortgage-Backed Securities.

At your service,

Luis Salas

Feb 14, 2010 03:33 PM

Brandon Watson

Team Sandy Blanton Realty, Inc. - Pensacola, FL

Short Sale Expert

Satir- Interesting that you've been using it for three months and this is our first experience. We've listed new homes and submitted new contracts more recently than that but last week was the first time we've dealt with the new system.

Luis- great idea to provide your own contact info instead of the buyer's or buyer's agent. I was hopeful that the new system would accelerate the process... maybe not.

Feb 15, 2010 01:22 AM

Anonymous

lisa mcgee

Yes, they have used it for a couple months. They must be slowly converting to the system. Some agents in my office were asked in December to use Equator, while I, who had been working on one since July the old fashioned way, has recently been asked to enter it on Equator. Now I am starting all over plus have no negotiator to call and be the squeaky wheel. I sent an email but have had no response.

Feb 23, 2010 04:13 AM

Andrea Cameron

Ultima Real Estate - Cedar Park, TX

(512)636-2675

Great information...I'm currently working a deal with BOA the old fashioned way (since Nov. 09) and have not been asked to enter equator. My deal has been reasigned to a new negotiator, so I'm wondering if I should go ahead and try to stick it in the equator system? Any thoughts?

Mar 01, 2010 08:05 AM

Anonymous

ML Brown

I am the potential buyer. Why does BOA need to know so much about me? Is BOA going to take some kind of action that will hurt my FICO score? Why does it take so much time to hear whether BOA has accepted your offer? I am really leary about this whole process.

Mar 04, 2010 12:08 AM

Jim Cheney

Saint Francis Property Santa Rosa, CA - Santa Rosa, CA

Rincon Valley Realtor 707.494.1055

I've used Equator, and don't like how much information they want about the buyer & buyer's agent. It was hard getting the buyer's agent to give me the first 5 digits of his clients ss#

Mar 10, 2010 09:01 AM

Scott Allen

Scott Allen Realty - Spokane, WA

I have B of A short sales in process as a listing agent, one with an offer over 60 days old through Titanium Solutions, and have now been informed we must go through Equator. I have submitted offers for buyers and the listing agents are going through Equator, having to supply buyers information that is pointless to the sale, SO at this point I can't find anything favorable to say about Equator or B of A and this process to conduct short sales. The retroactive effect will make in-progress sales take longer than ANY other short sales I'm currently working on. At a time when this process should be streamlined both in tasks and pace, B of A comes up with this. Sellers are already at the top of their frustration levels, some ready to just walk away, and now 'requiring' them to perform 'tasks'. Buyers aren't to thrilled about throwing out information that is completely irrelevant to submitting a Purchase & Sale Agreement, either. So much for holding down the foreclosure rate. I've never cared for B of A because of the way they conduct business and they are reaffirming my conclusion.

Mar 11, 2010 06:30 AM

Brandon Watson

Team Sandy Blanton Realty, Inc. - Pensacola, FL

Short Sale Expert

Since I wrote this, almost all of our short sales with BOA have been switched over into the Equator system. We've had a couple approvals through Equator. One of them was submitted and approved in less than 45 days which is excellent for BOA so maybe it is helping?

Apr 16, 2010 07:44 AM

Anonymous

Gladys Moore

The Equator system has just simplified the submission of documents to Bank of America. No more having to fax repeatedly documents because B of A claims that they did not receive them. It has not sped up B of A's cumbersome short sale process. While most of the larger lenders are now closing short sales in 6 to 8 weeks Bank of America is still taking 4 to 5 months or longer. Their processing is slow, negtiators are changed in the middle of the offer negotiations, negotiators do not communicate with the real estate agents or sellers and do not respond to emails or phone messages, you have to call for updates or you know nothing. The only thing that has really changed is that with the Equator system they cannot claim that they did not received your documents as they are there uploaded into the Equator system for those involved to see. Until Bank of America changes its entire system of processing these short sales they are going to continue to be inept in the short sale department. Maybe they would just rather foreclose as short sale a property? I will say that when you call now to the short sale department those handling these calls are very professional and nice and much more informative. Unfortunately they are not the ones processing the short sale which is where Bank of America fails miserably. We have now and have had several short sale offers for Bank of America, the 3 that are being processed now have been processing for from 2 to 4 months with no approval yet. We had 4 buyers back out due to B of A taking so long and just one closed, it took 7 months to bring to closing.

Apr 28, 2010 03:24 AM

#11

Andrew Nelson

San Diego, CA

Just closed two short sales, one through equator and one through reo prep. Both took about 3.5 months however they both had to run through two different buyers.

Aug 17, 2010 11:15 AM

Stephen Howell

Coldwell Banker Residential Brokerage - Annapolis, MD

Annapolis MD Homes For Sale 443-994-8043

Brandon,

Any update on BOA Equator? Once a negotiator is assigned, your notes above say that they are the best contact. Is the Equator front-end of any value or use after assignment to a first or second level negotiator?

Sep 01, 2010 02:19 AM

Anonymous

Arlene K Mose CPA

I just found out about "EQUATOR". Is BofA nuts - yes. This is why I left them as a bank. I have had two clients and my sister try to buy a home. The selling realtor wants their social security number and date of birth. There is no way this info is going to be given to the realtor or some BoA program. The buyers have their lender already. I read on some other sites that you can just make up this information becuase it really doesn't matter.

DOES ANYONE KNOW IF THIS IS TRUE ?

Sep 05, 2010 03:09 AM

#14

Anonymous

richard phillips

The seller's lawyer in my pending short-sale told my Realtor that Bank of America needs the first five digits of my Social # and my d.o.b. as a way of rooting out 'family fraud,' that is: a buyer who is related to the seller and who purchases short-sale property as a way of enabling the seller to get out from under an onerous mortgage, but thereafter stay in the home by paying rent to the new (related) buyer. The bank, which stands to lose a significant amount of amount via write-offs, evidently can detect from the first 5 digits of my Social # and my d.o.b. whether I am in fact related to the seller and thus be complicit in 'family fraud.' This make sense to anyone?

Oct 22, 2010 12:04 PM

#15

Stephen Howell

Coldwell Banker Residential Brokerage - Annapolis, MD

Annapolis MD Homes For Sale 443-994-8043

That approach sounds bogus to me!!! Please take a minute and read the wiki entry on Social Security Numbers as I think you'll find that it explains a lot about how social security numbers work (especially see the section "Structure").

While it may be important for any bank to ascertain fraud in short-sale transactions, using parts of social security numbers and parts of birth dates is not likely to help rout out fraud. It's more likely that at the time you go to settlement, the bank will ask you to sign a document under penalty of perjury that you are not related to the seller in anyway. The seller will be asked to do the same thing.

I think I'd be more concerned about providing the "first five" since those along with the "last four" equal the whole of your SSN. Add to it your birthday and you're ripe for identity theft. I think I'd exercise caution about this whole thing. It just doesn't sound right.

Oct 24, 2010 05:09 AM

Anonymous

T. Cup

Why is personal information required by the Equator/Bank of America to close on a short sale. They may not be the buyer's lender, so what purpose do they need it. There is no way they can tell if you are related to the Seller or not. This personal information is only required when applying for a loan, not purchasing a house. They're already losing money on the property that is just sitting and waiting to be sold. Why not just put it up for auction and sell it to the highest bidder? I think Bank of America purposely drags the short sale on for months to get higher offers. After waiting for 3-6 months to close on a short sale property, they can just tell you, "I'm sorry but there was another offer made and we have decided to accept the new offer". Hahaha! What a waist of time. My suggestion to all, "DON'T DO ANY DEALS OR BANKING WITH BANK OF AMERICA!" Their greedy and they don't help the people that need it.

Mar 24, 2011 02:32 PM

#17

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