LOTUS REALTY GROUP
I received the below email from Bank of America yesterday. I am sure some of you may have received the same but just in case I wanted to make sure you were all up to date on the latest news and programs and as usual give my advice on how to utilize this information to your benefit.
Bank of America now allows real estate agents to submit a backup offer on a transaction if the original buyer has walked away from the sale. This means you will no longer have to initiate a new short sale; instead, you can continue with the original transaction in Equator and still work with your same short sale specialist. This change will save you time by not having to repeat a number of process steps.
When a Backup Offer is ready
you should send a message to your short sale specialist via Equator when the original buyer is no longer interested in the property. Your short sale specialist will then respond to you within two business days and ask if you have a backup offer ready to submit. If you have another buyer 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 you will be directed to complete the following tasks within 14 business days:
· Complete the "Listing Data" task.
· Provide the marketing description.
· Review the marketing plan.
· Upload the offer. (To do this in Equator, locate "My Properties," then "Offers" and select "Place New Offer.")
If the "Listing Data" task is not completed and the new offer is not uploaded within 14 business days, 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. If you do not have a backup offer ready to be submitted, the short sale will be declined. In that case, you should return to marketing the property and initiate a new short sale in Equator once you receive another offer.
We work with many Equator transactions and obviously one of the biggest frustrations when we lose a buyer is starting all over as Equator typically works one offer at a time. This new system is great however, I wanted to remind everyone to pay attention to the last paragraph. If there is not a back up offer to replace the one you lost, you will have to start over and re initiate the short sale.
I would make sure that you have a couple back up offers on standby to avoid this issue. Time lines are much longer when we have to start all over and this only frustrates buyers therefore, we run the risk of creating a revolving door. If there are sale dates that we have to postpone, starting over will definitely pose a problem.
Setting expectations with the buyers is another way to keep them on the line. Knowing the time frame is key and sharing that with them. Every transaction is different and some will take longer than others so do not over promise and under deliver. I would also make sure all buyers are pre qualified and are not putting in offers all over San Diego County. We need to create a level of commitment which can only be accomplished by setting proper expectations and due diligence.
General Time Line: (These are subject to change with every deal)
1. File submitted
2. 7-10 days to upload into the system
3. 2-3 weeks processing time
4. Order BPO
5. 7-10 days for BPO to be submitted and assigned to a negotiator
6. Negotiator can take anywhere from 2-4 weeks to negotiate the file
7. Submit to the investor for final approval
8. Investor can take anywhere from 1-3 weeks (plus or minus)
It has been my experience when I slow down and do things properly in the beginning my transactions go much more smoothly in the end.
(Quote) Efficiency is doing things right; effectiveness is doing the right things.
"Peter Drucker"
REALTORS, what is in your business plan this year? What are you doing to create a system that will allow you to build your short sale business? How often are you out there prospecting and how do you know if you are taking the listings that are going to be successful and not a waste of your time?
Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close short sale transactions.
LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS
At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...
Call today to find out how Lotus Realty Group can assist you in closing your short sale transactions or go to WWW.LotusRealtyGroup.com
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