Short Sales
10 Tips to Avoid Delays in Short Sales
I attended a Bank of America short sale seminar on 4/1/10. The Executive Vice President of Short Sales, Western division, of Bank of America, Allen Seelenbinder presented the seminar. He provided 10 tips to avoid delays in short sales with Bank of America.
1) Set appropriate expectations with sellers, buyers and buyer's agents so that they understand the complexity and resulting length of time a short sale can take.
2) Have the homeowner call the Short Sale Customer Service (866-880-1232) to start the process. Prepare the homeowner to provide the complete financial hardship documentation, including all sources of income, assets and liabilities and have it updated regularly, to upload to Equator.
3) Ensure that property is listed on MLS and actively marketed for sale.
4) Negotiate external 3rd party fees prior to submission of HUD (e.g. the following fees are typically not approved by investors: short sale negotiation, reconveyence, document preparation, notary, recording, courier, processing). Supply the complete HUD-1 that is valid for at least 60 days and includes all fees.
5) Review all documents and document images for accuracy and clarity prior to upload.
6) Ensure that customer and agent tasks are completed as timely as possible (e.g. accepting short sale assignment, submitting short sale offer, and uploading offer documents must be done with 7 days).
7) Work to get a purchase offer representing the best possible fair market value (with current detail on the market and activity) and highest net proceeds for the investors.
8) Submit fully executed purchase offers with all appropriate addendums signed by both buyer and homeowner, and include all supporting documentation.
9) Work to get a release on outside liens as early as possible.
10) The following situations will cause delays. Please notify Bank of America as soon as possible if: (a) Change in buyer or agent or terms at any time during the process (b) Customer files bankruptcy/divorce (c) Any changes after the approval letter is issued (be conscience of the expiration date).
1) Set appropriate expectations with sellers, buyers and buyer's agents so that they understand the complexity and resulting length of time a short sale can take.
2) Have the homeowner call the Short Sale Customer Service (866-880-1232) to start the process. Prepare the homeowner to provide the complete financial hardship documentation, including all sources of income, assets and liabilities and have it updated regularly, to upload to Equator.
3) Ensure that property is listed on MLS and actively marketed for sale.
4) Negotiate external 3rd party fees prior to submission of HUD (e.g. the following fees are typically not approved by investors: short sale negotiation, reconveyence, document preparation, notary, recording, courier, processing). Supply the complete HUD-1 that is valid for at least 60 days and includes all fees.
5) Review all documents and document images for accuracy and clarity prior to upload.
6) Ensure that customer and agent tasks are completed as timely as possible (e.g. accepting short sale assignment, submitting short sale offer, and uploading offer documents must be done with 7 days).
7) Work to get a purchase offer representing the best possible fair market value (with current detail on the market and activity) and highest net proceeds for the investors.
8) Submit fully executed purchase offers with all appropriate addendums signed by both buyer and homeowner, and include all supporting documentation.
9) Work to get a release on outside liens as early as possible.
10) The following situations will cause delays. Please notify Bank of America as soon as possible if: (a) Change in buyer or agent or terms at any time during the process (b) Customer files bankruptcy/divorce (c) Any changes after the approval letter is issued (be conscience of the expiration date).