Bank of America Steps Up the Short Sale Negotiation Process

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Real Estate Agent with Long and Foster REALTORS®, Gainesville, VA VA License # 0225089470

Bank of America Steps Up the Short Sale Negotiation Process

About a week ago, Bank of America sent out a new third party authorization form to Short Sale Agents.  They will no longer accept any other third party authorization form.  So what's so special about Bank of America's new third party authorization form?  Well for starters, you have to be a licensed real estate agent or attorney in good standing with your licensing board to be authorized to speak with Bank of America regarding Short Sales.

It's about time!  I've been preaching this one since 2007.  In the Commonwealth of Virginia, you have to be a licensed real estate agent or attorney to negotiate real estate contract terms.  I've been wondering how unlicensed negotiators are skating on that one. 

Secondly, as the authorized third party, you are stating you will not knowingly misrepresent the facts of the Short Sale to the bank.  For instance, if you knew that the Sellers were attempting to sell to an investment group with the plan to buy the home back right away, you would need to disclose that.  It's an attempt to put an end to fraud and I applaud that.

Thirdly, you state you'll be in compliance with local and federal laws and any other rules and regulations that govern what services you are providing.  That includes the REALTOR® Code of Ethics.  So what you can't do as a licensed real estate agent, is to put your name on there and have an unlicensed negotiator, call and pretend to be you.  Completely unethical..

Bank of America has taken a lot of steps to make their Short Sale process faster and in this case, make sure their clients are not working with unlicensed entities that fly by the seat of their pants and have no professional accountability.  They are really stepping up their game and as a licensed real estate agent who specializes in helping sellers through Short Sales, I appreciate their efforts to protect the process and the clients.

 

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Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Chris Ann - Those all seem to be steps in the right direction - and as they say, a journey of a thousand miles begins with a single step. Let's hope they keep stepping.

Mar 28, 2012 04:32 AM #1
Rainmaker
687,550
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

Wow ... by the time this short sale mess is over, the banks will have all their ducks in a row, won't they? This is great news!

Mar 28, 2012 07:28 AM #2
Rainmaker
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Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Well, I am from the school of thought that you don't need a license to sell real estate. This will affect 3rd party negotiators or negotiators who are licensed in one state, but negotiating a short sale in another state.

I forsee them revising this to allow unlicensed people as well.

Mar 28, 2012 04:53 PM #3
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Dick:  Bank of America really is doing all they can to improve the process.  The next step they can take is to stop dealing with third party vendors on their Cooperative Short Sales.

Cynthia:  I can't foresee an end to this Short Sale mess just yet.  Probably a couple more years in my neck of the woods.  And that's if we don't have complicating factors that drag values down again.

Satar: I don't see them changing this.  I think this was a very calculated move.  And the problem is that, too many unlicensed negotiators are really ambulance chasers and giving horrible advice.  And with no licensing entity, there is no one to keep them in check.  I know that's not you. 

Mar 29, 2012 01:37 AM #4
Anonymous
Kristin McKenney
Our short sale with Bank of America has been a NIGHTMARE- and that is putting it lightly. My husband was relocated out of state in 9/11, we got a contract on our house 12/8/11... Our first negotiator was assigned in mid-Jan. He had our house appraised, gave us our approval to participate as well as the bottom line sale price that would be accepted. It is now May 6th... We are on our 3rd negotiator. Our phone calls go unanswered and unreturned. We've spoken to supervisors, supervisors or supervisors and the President's office- with still no movement. We have begged & pleaded for a status update- with no response. In an effort to save our credit, we have been current on our mortgage- but can no longer afford paying for two places to live. I have no idea where to turn next.
May 06, 2012 01:35 AM #5
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Kristen:  I'm really sorry to hear you are having such issues with Bank of America.  I would encourage your real estate agent to contact them via Twitter as their social media team is super responsive to situations like this.

May 06, 2012 07:05 AM #6
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Chris Ann Cleland

Associate Broker, Bristow, VA
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