Bank of America Short Sale - Lengthy Approval and Speedy Closing?

I would love to know what idiot sends these things out without bothering to read them! This is typical BOA!

I am not trying to defend Bank of America, but I agree with alot of what London said.  I think the negotiators are relying too much on the automated dates set in Equator when the file is first inputted.  Just based on the sheer number of short sales they must have in process (most likely every Countrywide loan they purchased), its amazing the system works as well as it does.

And I would say that B of A is aware of the limitations of the Equator system and their negotiators based on the email they sent out about a week ago that stated that even if you accept a counter offer in Equator, it doesn't mean that it is an agreed upon deal.  They still have the right to change or modify the counter.  So they don't even trust their own system.

My first clue that this wasn't going to have a happy ending is when it started out with BofA.  Sad business practices in all areas!

That would be funny if it wasn't so frustrating and difficult to straighten up. 

Where is the money in the Short Sale business? after 5 or 6 months, max commisionn 5% (BOA), 2 Realtors 2.5% each ,less expenses , broker's fee, taxes, ????

I am wrong?

show me the road !!

I prep my short sale buyers to be prepared for a long wait to get lender approval, but to also be prepared to close quickly once they provide it.  But same day closing? Yikes! 

I'm involved in 2 B of A short sales. We just got word on July 14th that escrow needs to close by July 19. Took 3.5 months to hear that. They gave us 3 business days, which I guess is better than you got, but definitely not enough time. B of A will instead foreclose. My other deal has only been going since April 30, so I guess we have a few more months before we'll hear anything.

Wendy this must be so frustrating for you and your client.  There are so many of these sort of stories out there; it is really sad.

Congrats on getting your approval letter.  Way to Go!

Amazing!  The stories never cease to amaze me.  Sorry for your frustration.  Clients think they are the only one, and look at us like we messed up.  Clients think, "how could a mega bank be so inept.  It must be my agent."  You can see it as they look at you in disbelief.  RRRRRg!

It would be interesting to sit down with the big wigs at B of A and ask them what they're trying to do? Looks like EVERYTHING they do is anti-consumer.

My home loan is with them because they bought out Countrywide. It took me 6 months to get them to send me a statement in the mail. It was about 4 months before they began responding, telling me they were reviewing my request and would get back to me within 30 days. Then when they finally did begin mailing statements, they wrote me 3 or 4 letters telling me that my request had been approved. And this month - they sent 2 statements.

I don't think they know what the he-- they're doing!

It's the old left hand/right hand thing. My buyer client was getting a B of A loan.  The loan office told us they were backed up and would need 45 days to get the loan done.  Meanwhile, the property offered on was a short sale with two loans, both B of A.  When we got the bank approval, we had 9 business days to close.  We were able to get extensions, but it would be logical for the lending side to communicate their backlog delays to the loss mitigation departments.  But wait. We are talking about banks here!

BOA of is a bunch of jerks.  This equator system has been real tough too.  My last deal with BOA was they wanted 5k more for the house, the buyers complied.  After that BOA didn't want to pay concessions because they said the buyers were conv. when in fact they were FHA.  Then they wanted a 10K from the sellers, now if a seller is in a short sale are they really going to have 10K laying around to pay you.  So then they wanted a 20K promissory note or the 10K at closing...well the sellers filed and discharged a BK and the property was in the BK...I guess enough said.

This is only the beginning, folks.  2-4 more years of this, and the pending Commercial loan implosion, will have us all wishing for a better time... say, sometime during the mid-1800's.  :)

Let us know how this one turns out.  Will someone there figure it out and extend the deadline?

Oh of course! I just had them sell the 2nd to another lien holder and we just signed at escrow so now we have to go to new 2nd lien holder and start all over!!!! Grrr

The banks will soon be sued over their per diem fees and I think they will probably lose. It is frustrating how they take all the time they want while agents try to get their buyers to hang in there with the process and get very demanding near the end. It is almost like they are trying to drive the buyers away.

I attended a WCR meeting on Monday and the 3 "top guys" from BofA, Chase and Wachovia/Wells were there to discuss short sales and what's coming.

Starting in 2011, theer will be NO postponements of Trustee Sales nad NO extensions of closings on Short Sale Approvals.  They all want to clean out the inventory as quickly as possible.  All of the have put procedures into place to speed-up SS approvals.  Wachovia has cut the paperwork to 13 pages, will send a representative with the agent to meet with the seller and will provide an approval within days.  They are also paying 6% commission with a 1% bonus if the property closes by February 28, 2011. That's all in place right now, at least in CA.

All three companies gave a few "nuggets" to take away. 

• Don't call them the "Lender" - the WERE the lender when they made the loan, but once the borrower went into default, they became "Debt Settlement Companies" on that transaction.  This adds a new perspective for the seller who thinks they can stay in the property forever without paying.
• They are NOT paying attorney fees (to attorneys who have been hired by the borrower to fight the foreclosure).  If it shows up on the HUD, it will be removed and will become  the borrower's responsibility.
• They are NOT paying a 3rd party negotiator fee if it is in addition to a commission already being paid to the Listing Agent.  The position is a Listing Agent assumed the responsibility to negotiate the short sale when they took the listing and if they are incapable or just don't want to, then the Listing Agent needs to pay for it out of the Listing-Side commission.
• All three companies are willing to work with REALTORS who truly have their client and teh bank's best interest in mind.  They do have issues when the same agent/broker is on both sides of the transaction or if the submitted offer is ridiculously low-balled.

100% of my business for the past 3 years has been short sales (with the exception of 1 transaction which was the sale of a client's house who bought a short sale. - I almost didn't know how to handle a standard sale - LOL.

Here's a link to some news that just came out - many of you have seen it, but it's good to read again.  I think we have 8 more years of short sales.......

http://www.dsnews.com/articles/lps-more-than-7m-mortgages-are-delinquent-or-in-foreclosure-2010-11-17

Just my .02