Bank of America Short Sales and Equator

I have heard mixed reviews from REALTORS who have tried to negotiate a short sale on their own with Bank of America. Last year when Bank of America introduced their new system for processing short sales, Equator, it was their intention to stream line the short sale process. However, due to the lack of staff training it appeared that we were all flying blind trying to figure this system out. That being said, all great things happen over a period of time and that is what I see has happened with Bank of America.



I have found this lender and the Equator system to be effective, efficient and less time consuming than the old system where you had to fax over a short sale package and you were not sure whether it was received on the other end and whether all the pages went through. YES, that is how the other lenders are still doing it but it is my hope that more lenders will adopt the Equator system. I know GMAC is now using Equator. As we move forward in 2011, there are going to be massive amounts of short sales being submitted. It is my belief that the other lenders should follow Bank of America and GMAC’s lead to become more effective and efficient in getting these closed.



Here are some common complaints:



A) My paperwork seems to get lost when I submit Bank of Americas requests:



When Bank of America assigns a task through Equator they give you a time frame to get that task done. It has been my experience that if I am clear on what the bank is asking for and I am able to collect the right documents and get them uploaded into the system in the time frame that they gave me, my paperwork gets to the right person.



B) Inaccurate Broker Price Opinions:



Bank of America and most other lenders want to see the property listed for 120 days. We typically like to create a listing history for the lender so we have our data to back up the offer we bring to the table. We do a detailed comparative market analysis of the property with 3 active, pending and sold listings, a list of repairs and other detrimental factors that would decrease chances of getting what the bank wants to net. This will help to dispute whatever the BPO agent comes up with. Let’s face it, we all know BPO agents spend 5 minutes taking a few pictures and doing a 2 minute walk through and base their opinion on that. Get used to it, it is not going to change, but if we approach a short sale the right way we will be able to get the negotiator to see our point of view.



C) Unresponsive negotiators:



It is my opinion that there is no reason why you cannot communicate with the negotiator. There are many different avenues you can go through to get the negotiators to respond. Call customer care, email, phone and if all else fails, file a complaint. It is your tenacity that is going to get them to respond. They have hundreds of these on their desk; it is your job to keep it in front of them.



D) Unexpected closed files:



This is very simple to me. Do not submit a package unless it is 100% complete with a fair proposal and all documents attached and make sure you are submitting the documents in the time frame that the Equator system gives you. If you do not submit a complete package there is a good chance that the negotiator on the other end will close out the file or shred what you have sent.



E) Buyers walking:



The process with Bank of America only starts when you have a buyer. If your buyer walks away then you start again. A letter will be sent to your client declining the short sale. Set expectations with the buyers. Make sure you give them a realistic time frame.



I understand the complaints and frustrations REALTORS have in this regard. I personally accept that every short sale is different and every lender and negotiator is different. I know what the lenders are looking for and I stay within those parameters as best as I can and ONLY take the deals that make sense.



Tip of the week:



Bank of America will only cover property taxes for up to 2 years. This does include penalties and interest. If you have a homeowner who is over two years behind, you will want to set expectation with the buyer and structure the offer to cover it.



(Quote :) The leader has to be practical and a realist yet must talk the language of the visionary and the idealist.

~Eric Hoffer



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