Bank of America Short Sales: Improvements Make BofA Short Sales Desirable.
In the past, Bank of America had a terrible reputation when it came to short sales. They lost documents, failed to respond to inquiries on updates, abruptly closed files and many agents simply refused to work short sales involving BofA. However, they are now leading in short sale closings. What brought about this dominance in the short sale arena? For those whose mortgages are held by Bank of America, pursuing a short sale may be a wise choice.
Short sales approvals in January 2012:
- North Carolina Based Bank – 5,276 approvals
- JPMorgan Chase – 2,976 approvals
- Wells Fargo – 2,788 approvals
- Bank Of America – 10,477 completed short sales
Although formally infamous for how they handled their short sales, compared to other banking institutions, Bank of America is now superior in their number of short sale closings. There are several factors that contributed to this change in pace. To name a few benchmarks:
- One of Bank of America’s greatest deficiencies has become one of their greatest improvements: organization. Thus, Equator was introduced. Acknowledging their severe lack in organization which is pivotal when it comes to short sales, they began using an online platform which proved to be extremely beneficial to their short sale transactions.
- They also came out with various programs such as the Bank of America’s cooperative short sale program. Rather than negotiating the terms after offers come in once the home is listed, this program streamlines the short sale process by working with the realtor and the homeowner prior to marketing the home and coming up with an agreement that would include the terms of the approval and the listing price. Once the offer is submitted, the Bank will respond within 10 days.
- Bank of America executed a short sale pilot program providing monetary incentives for those who qualified. Understanding that foreclosures are detrimental to the bank as well, they endorsed short selling the home which could leave the homeowner with up to $20,000 or a minimum payout of $5000.
- The most recent change from Bank of America (April 14th 2012) aimed to make their short sales even more streamlined by improving their short sale management technology, Equator. Their goal is to reduce the timeframe for a short sale decision to three weeks.
The significant changes include:
- The amount of documents needed to initiate the short sale have been reduced to 5 documents including a third party authorization form which basically makes it so unlicensed members such as assistants and title companies are not able to speak with servicers at Bank of America.
- If the buyer walks away from the short sale, the agents have 5 days to submit a backup offer as opposed to the previous 14 day timeframe.
There you have it. Bank of America made vast improvements for their short sales. If you have a mortgage with Bank of America and have an expert agent, you may take advantage of these improvements and greatly minimize your short sale duration and your chances of becoming another short sale horror story. If you are in Washington, contact our short sale experts today here and they will get in contact with you within 24-48hrs. Hope this helps!