Every Mortgage company has their own process for handling short sales. Some will do a short sale if you are not yet behind on payments. Some will not look at a short sale until you are behind on payments. There are all kinds of laws and what not that state all the banks are “streamlining the process.” Bank of America uses an online system called Equator. When we list a short sale we set it up on the Equator system and that system generates tasks for us. They will want a third party authorization giving the mortgage company the right to speak to the real estate agents about the loan. Bank of America has their own third party authorization and that is the only one they will accept. If you have a purchase agreement when you start the file on Equator you will be asked to upload it as well as their Buyer Acknowledgement form, Bank of America’s short sale addendum and Real Estate license certification. Bank of America will ask for a HUD 1 which goes through all the costs associated with selling the property and gives Bank of America a final payoff number to them.
Bank of America requires the following paperwork to proceed:
- Third Party Authorization
- Buyer Acknowledgement
- Short sale addendum and License certification
- Listing agreement
- Purchase agreement
- Hardship letter
- Financial statement, HAFA form or 710 form
- Last two months bank statements
- 30 days’ worth of pay stubs
- Last two years tax returns
After they receive all the above paperwork Bank of America will order what is called a Broker Price Opinion. For a Broker Price Opinion (BPO), another Realtor will go to the property, take notes, measurements and pictures then do a comparable market analysis on the home. The Realtor will then send his or her price opinion to an asset management company (third party) who then sends it to Bank of America. Then Bank of America will assign it from a processor to a negotiator who will look at all the paperwork and BPO. Based on the BPO and Bank of America’s own calculations, Bank of America will accept, reject or counter the offer. The buyer then has the opportunity to accept, reject or counter the offer.
Do you have a mortgage with Bank of America and are concerned that you can’t afford your mortgage payment anymore? Please contact us today for a free, no obligation and confidential conversation about your options. We want to help educate you on all of your options so you can make an informed decision!