New Short Sale Policy from Bank of America

Interesting move by Warren Buffet to invest $5 billion in BofA this week. While that news may be indirectly relevant to this blog, I have another news to share regarding Bank of America’s new short sale policy, which allows real estate agents to substitute a new short sale buyer without restarting the often complicated process of a short sale transaction. Here are the details:

Bank of America now allows real estate agents to submit a backup offer on a short sale transaction if the original buyer has walked away from the sale. This means agents will no longer have to initiate a new short sale via Equator (a file management system). Instead, they can continue with the original transaction in Equator and work with the same short sale specialist. This is a HUGE change that will save time for sellers, buyers and REALTORS by not having to repeat a number of short sale processes again and again.

When a Backup Offer Is Ready
Real estate agents should send a message to their short sale specialist via Equator when the original buyer is no longer interested in the property or simply walked away from the transaction. The Bank of America short sale specialist should respond within two business days and ask if the agent has a backup offer ready to submit. If another buyer is 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 agents will be directed to complete the following tasks within 14 business days:

1. Complete the “Listing Data” task.
2. Provide the marketing description.
3. Review the marketing plan.
4. Upload the purchase offer.

The real estate agents will then have 14 days to complete the “Listing Data” task. If the task is not completed on time, 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 away. If a backup offer is not ready to be submitted, the short sale will be declined. In that case, real estate agents should return to marketing the property and initiate a new short sale in Equator system once another offer is received.

This is definitely great news for the real estate industry as we continue to see short sales on the market. It’s a win-win all around. If you’d like to learn more about this topic, don’t hesitate to contact me.

Ihor Pochay
BROKER/SHORT SALE & REO SPECIALIST
Team Pochay Realty
C (562) 334-7393
ihorpochay@hotmail.com
TeamPochayRealty.com
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