Importnat Information about Bank Of America Short Sales

Both Buyer's and Seller's are always looking for more information about the short sale process and how they work so that they can have their eyes wide open when they choose to sell their home as a short sale or what they need to know when entering into a contract to purchase a short sale.  In either case, you may sometimes need the patience of Job.  I have had a short sale take as long as 16 months, or I have seen approvals in less than a month.

Here are some details as it regards to Bank of America Short Sales:

1. They want to know there is a TRUE hardship and the net proceeds are very important.

2. Investors do not care if it is a cash transaction or financed.

3. Case loads, at the height of the crisis, were nearly 600 per agent assigned to a file.  that number has dropped to just over 100 cases per negotiator.

4.  People want to know how long the process will take.  The average number of days from start to an approval is about 50 days.  HAFA  (Home Affordability Federal Assistance) can take almost twice as long or longer.

5.  Borrowers in the HAFA program usually receive $3,000 for relocation.  Those funds can now be used to pay off 2nd liens, HOA fees, money used towards the deficiency, etc.

6. BOA has a new program that they have rolled out where they are offering $20,000 for the Seller to move out of the house.  You must not have an offer on the house and you must apply between 9/26-11/30/11.  It is a short window of opportunity, but it is a great incentive to move.

7. A great number of people are not aware that most banks are not the investor with a loan.  They are the SERVICER of the loan and really stop making money once the loan has stopped being paid.  A loan may have more than one investor.  It could be a pension fund in Australia that only meets quarterly and therefore, it take a great deal of time to get these transactions completed.  Some investors cannot agree on an acceptable amount for the short sale. Once you counter on an offer, it may involve several parties that need to agree in order to get a final approval.

8.  Structural damage to a property requires that the Seller file a claim with their insurance company in order to have repairs completed prior to a sale.

9. A BPO (Broker's Price Opinion) is completed once a contract is in place.  These will normally be valid for 90-120 days.  Banks will also complete full appraisals on certain properties.  As a Buyer or Buyer's agent, the BPO is the property of the banks and will not be released.

As I have seen over the past few years, these rules are always in flux.  They can change daily.  But, if you are patient enough, there are some very good deals in the Sarasota market.