It has happened a day late and millions of dollars short, but Bank of America is now letting the substitution of buyers in the short sale process without starting the whole process over again. You would think a bank the size of B of A would have figured this out years ago.
Here is an example what the old policy did to us.
Two weeks ago we had a buyer walk and found a new buyer within days. B of A still closed out the file and believe it or not, actually had our seller call back in to discuss options such as short sale, deed in lieu and HAFA even though two weeks earlier they had just completed the same conversation. We scratch our head but do what they say in order to get the file moving forward again with a new buyer.
This policy change will be a great help for all of us.
However, be forewarned short sales policy changes like this do not come without resistance from associates and corporate caveats that most real estate professionals will never realize until it is too late.
There are limitations to the back up offer scenario. The bottom line, you better have a backup offer when the first buyer walks. As soon as you notify B of A that they first buyer is not interested you have 14 days to upload the back up offer to the system. If you go past 14 days they close the file and make you start over like usual.
There are two lessons here:
First, every agent should be marketing for backup offers from the beginning. Too many real estate professionals don't take the time to get a back up buyer. It will save your short sale more often than not.
Second, don't send the flag up the pole that you lost a buyer until you have a new one. Short sales take forever anyway; let B of A work the process internally while you bust your back side getting another buyer.
This policy change is going to cut our B of A processing of short sales down simply because we don't have to start at square one so many times on each file.
If you are not familiar with the Equator system, check out my YouTube channel. I have a couple intro videos that will be helpful. www.youtube.com/allianceshortsales
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Based in Spokane, Washington Alliance Short Sales offers short sale services in multiple states around the U.S. Alliance negotiates short sale real estate transactions with lenders on behalf of agents without charging a fee to the agent or the seller. Because their fees are paid at closing out of the net proceeds to the lender, Alliance creates a beneficial outcome for all parties involved. For additional information about how you can work with Alliance Short Sales, please visit our website at www.AllianceShortSales.com.