Bank of America Cooperative Short Sales -- Sound too Good to Be True?
When I first started watching a webinar on "Bank of America Cooperate Short Sales", my first reaction was -- This program sounds great! A few key points were; the short sale process is started immediately, my clients get $2500 toward moving cost expense and a faster turn around time on the short sale decision. Great!
But then the skeptic in me made it's appearance. I started thinking -- this sounds too good to be true. Since I dedicate time everyday to improve my knowledge on short sales. I do this in an effort to better serve Naperville Area Short Sale sellers. So I decided to dig deeper, and what I discovered were a few drawbacks for the short sale seller.
On the one hand, the purpose for the cooperative program is to close short sales faster. Which it might -- rather than waiting for an offer to be received, all the leg work is done in the beginning, prior to an offer. The seller's paperwork is submitted, the BPO is ordered, sellers qualification and value is reviewed, and bank determines the list price. This is all great for a short sale buyer -- last wait time.
But, on the other hand -- for the short sale seller, there are a few drawbacks -- In the Cooperative Short Sale Program; Bank of America retains the rights to collect on the balance, the investor may require cash contribution or promissory note, marketing time is 120 days -- if at the end of the 120 days if the property has not sold, it will then be a forced deed in lieu.
What I see here is a -- win, win, win for Bank of America, no so much so for the Short Sale Seller.