LEAPING LIZARDS! No restart if short sale buyer backs out. Continue where you left off.

Real Estate Agent with Alain Pinel BRE 01367196

Can this be true? LEAPING LIZARDS!

One of the most challenging things about handling short sales is that after waiting for so long to get an approval, the buyer gets antsy and backs out. And we had to start all over again when a new offer is received. The bank's rationale, the approval is based only on the previous buyer and does not apply to the next.

Just received this email. Can't believe my eyes.

Now You Can Substitute a New Buyer for One Who Walked Without Restart

As an example of our commitment to improving the short sale process, Bank of America now allows real estate agents to submit a backup offer on a transaction if the original buyer has walked away from the sale. This means you will no longer have to initiate a new short sale; instead, you can continue with the original transaction in Equator and still work with your same short sale specialist. This change will save you time by not having to repeat a number of process steps.

When a Backup Offer Is Ready

You should send a message to your short sale specialist via Equator when the original buyer is no longer interested in the property. Your short sale specialist will then respond to you within two business days and ask if you have a backup offer ready to submit. If you have another buyer prepared to make an offer, the short sale can proceed without having to repeat the short sale initiation steps. The short sale status in Equator will change to "Marketing," and you will be directed to complete the following tasks within 14 business days:

· Complete the "Listing Data" task.
· Provide the marketing description.
· Review the marketing plan.
· Upload the offer. (To do this in Equator, locate "My Properties," then "Offers" and select "Place New Offer.")

If the "Listing Data" task is not completed and the new offer is not uploaded within 14 business days, the file will be closed.

When No Backup Offer Is Ready

This new process applies only if there's an available backup offer when a buyer walks.

If you do not have a backup offer ready to be submitted, the short sale will be declined. In that case, you should return to marketing the property and initiate a new short sale in Equator once you receive another offer.

A new educational guide, How and When to Submit a Short Sale Backup Offer, is available to explain the backup offer process. If you have any questions, please contact your short sale specialist via Equator or call Customer Care at 1.866.880.1232.

Visit the Real Estate Agent Resource Center at bankofamerica.com/realestateagent for additional educational guides, news and resources to help you complete short sales at Bank of America.

Comments (3)

Cliff Keith
Golden Gate Sotheby's International Realty - Redwood City, CA
Redwood City Real Estate

Nice.  It's always a pain when in the past they made the process start at the beginning with each new buyers.  What the hey do they want to get this toxic asset off the books or not?

Jul 12, 2011 10:58 AM
Aida Pinto
Independent Real Estate Broker - Los Angeles, CA
Real Estate Broker (562) 884-6196

Thanks for this update....this is great news....I hate this aspect of working with bank of America short sales but it looks like they are trying to improve their systems.

Jul 12, 2011 08:18 PM
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Cliff --- I did a double take when I read the email. 

Aida --- this is a very bold move by BOA. But this makes total sense to me. Why did it take them so long to see it?

Jul 12, 2011 08:27 PM