Bank of America Short Sales in Denver Getting Easier???
Ask any agent who has had to deal with Bank of America on a short sale during the past few years and they will have war stories of hours, weeks and months spent in vain trying to get a short sale approved. There is nothing worse than investing hours, advertising dollars and more for months on end only to never make a dime when it goes to foreclosure. I can tell you that I would tell my home buyers to avoid them if I found out they were the lien holder. I am assuming that most of America now knows that a short sale is an attempted sale of a property where the loan is greater than the value of the house. The seller wants to / has to sell and the bank needs to take less than what is owed on the loan. This last week Bank of America took me by surprise and they seem to have finally gotten their act together.
Bank of America now using the equator.com platform for Short Sales
equator.com is a website where banks process thousands of foreclosed properties every month through real estate agents. This website is where the banks gather information from agents and post documents and REO assignments. During the past few months Bank of America has had a button on the site that allows a real estate agent to initiate a short sale. For an agent to begin this process, they need to have a listing agreement, seller authorization and know the loan number. It certainly helps to have the sellers full financial information as well, but that is about to change with the new system. I have a Highlands Ranch Short Sale where the seller is dealing direct with Bank of America with their financial info.
Equator agents have a new 800# for Bank of America
Once an agent has initiated the short sale on equator, they can call a special division of Bank of America dedicated to equator.com agents. That phone number is 866-677-2516 and they are just the nicest people in the world. Only somewhat helpful, but really really pleasant to talk with. I was surprised at how friendly they actually were with me when I called. They even asked me to take a survey afterwords where I could rate the service I received. I didn’t have to wait on hold for more than a minute. The property that I was calling on that day was getting close to foreclosure and we had an offer on it that I was calling to get an approval on. She asked me the offer price and buyer name and within a minute gave me an approval. I asked for a postponement of the foreclosure and she assured me that they would delay the sale and give me 30 days to close the deal. I was super excited and called the other agent and my seller to tell them of our good fortune. ( Unfortunately it was sold at auction a few days later and the sellers now have a foreclosure on their credit ) Obviously all the kinks are not worked out of the system.
Denver sellers jump through hoops on short sales
If you are a seller considering a short sale, most of the lenders like Bank of America are going to require you to disclose all of your financial information. The process is very similar to what you went through when you applied for a loan. They ask for the last two months bank statements, last two pay stubs from both borrowers, tax returns, a hardship letter and financial worksheet. In most cases if you are unwilling to provide these documents, they will not do a short sale. Why do the banks ask for this info? They want to verify that you are actually in a distressed situation and also want to know what assets and resources you have to go after in case they want to pursue a deficiency after foreclosure or short sale. The Bank of America sellers also have to call 1-866-677-2516 and give them their email. They will then need to log into the Bank of America website for short sales at Bank of America Short Sale. Once inside they will receive information that they need to provide to keep the process going.
Strategic Default versus Short Sale
Some clients are not really candidates for a short sale even though they want out of their house. For example, a seller in Highlands Ranch paid $500,000 for their house in 2006 at the height of the real estate market and now it is worth $350,000. ( It is just an example, values did not drop that much ) Lets say the seller doesn’t think they will ever be worth $500,000 again and wants out of the property. The seller may make plenty of money to pay the payments and isn’t really in a hardship but wants out because the property lost so much value. That is called a strategic default. The seller may be better served by foreclosure since giving the bank all their financial information in a short sales may give the bank information where the bank can collect money after the foreclosure. I am not a lawyer and am not giving any advice. You just need to really think about these things prior to attempting a short sale.
Bank of America Short Sale Guide
One of the cool things that I did get from the recent updates is a guide that Bank of America emailed to me showing me how to improve the chances that a short sale will be approved. Once you log into equator, you should receive an email with the offer instructions. The main Bank of America Short Sale Phone number is 866-880-1232 and their fax number the last I checked was 866-680-1232. If you are trying to do a short sale on a Bank of America line if credit, try 866-413-3757 as a phone number. I’ll try to keep these updated for everyone to use as I can. If a number changes, leave me a comment at the bottom of the page and I’ll update the post. If you have a property that you need to sell and want to talk about a potential short sale, leave me your information in the contact information below.
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