Thirteen Stages of a BofA Short Sale

By
Real Estate Agent with RODEO REALTY 01248407

 

I have been in the same short sale transaction for the last 7 months.  My wonderful clients have been  most patient and understanding but now are reaching the end of the proverbial rope!   

About a week ago my client sent me the 13 Stages of a Short Sale and asked me what stage of the short sale transaction did I think we have reached.  I was surprised that such a list existed but then learned from my client that she loves to read blogs and that is how she found this time-line for BofA Short Sales.... thought I'd share it here.  It might make good material for a stand up Realtor comic.

Posted by a blogger who goes by "Long Sale" - here's the "unedited" list and why it's taking 7 months of waiting for an approval from the bank.....

1. Stage 1 – offer given on the property which the seller accepts
2. Stage 2 – Seller’s agent prepares a short sale package which includes (a) Past 2 years of Sellers income tax, (b) 2 months of bank statement, (c) hardship letter, (d) YTD paystub, (e) purchase agreement, (f) .. etc.
****Since alot of documents are needed and multiple parties are involved chances are time may have been waste in gathering the documents ****
3. Stage 3 – All the documents are submitted to Bank of America.
4. Stage 4 – It takes 15 days for Bank of America to scan the documents into their system.
5. Stage 5 – Usually wait 1 and a half month to be assigned Phase 1 negotiator.
6. Stage 6 – Phase 1 negotiator ONLY reviews that all the documents are in file. This will take 30-45 days.
7. Stage 7 – Phase 1 negotiator then submits the file over to Phase 2 negotiator.
8. Stage 8 – Phase 2 negotiator has 30 business dates to review the file. (If no response within 30 days than instruct sellers agent to have the file escalated for review) Negotiator 2 orders the BPO and if one was ordered before he/she will again order a new BPO if it is older than 60 days, requests an updated: (a) sellers past 2 month banks statement, (b) YTD pay-stub (c) 2 years of income tax documents (AGAIN) (d) buyers – bank statement – ability to pay, social security number, date of birth, agents license number .. etc.
9. Stage 9 – Buyer and seller submits the requested documents
***Although you can submit your share of the documents you cannot be sure the Seller will submit his documents on time. So usually time is waste until the other party submits the documents – 1 to 2 weeks ****
10. Stage 10 – Takes 15 days for the documents to be scanned into the Bank of America system. On the 16th day the Phase 2 negotiator then reviews the file again.
11 – Phase 11 – Negotiator than submits the offer to the Investor for review.
12. Stage 12 – Investor has 45 days from receiving the offer to approve or deny it or counter off it.
13. Stage 13 – If approved then must close within 30 days.

 

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Location:
California Los Angeles County Los Angeles North Hollywood
Groups:
Keller Williams Realty Referral Group
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short sale

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Rainer
95,547
Troy D. Village
Troy D. Village, MBA | First California Mortgage - San Mateo, CA
MBA - Branch Mgr | Sr. Loan Officer - NMLS #325112

Hi Elena, looks like an interesting topic but it looks like a bunch of html code... may want to try copying it into notepad and then back into your blog though to repost...

Best ~ Troy

Feb 06, 2010 07:04 PM #1
Rainer
95,547
Troy D. Village
Troy D. Village, MBA | First California Mortgage - San Mateo, CA
MBA - Branch Mgr | Sr. Loan Officer - NMLS #325112

wow, i'm counting at least 8 months in that timeline - sounds like part of the bank's strategy is to simply wait!  curious, are you representing the buyer or seller in this?  surely sounds like an exercise in patience.

Troy

Feb 06, 2010 07:28 PM #2
Rainer
11,017
Elena Lobito
RODEO REALTY - Beverly Hills, CA
Realtor

Guess I forgot to mention, I'm representing the Buyers. 

Feb 06, 2010 08:21 PM #3
Rainer
95,547
Troy D. Village
Troy D. Village, MBA | First California Mortgage - San Mateo, CA
MBA - Branch Mgr | Sr. Loan Officer - NMLS #325112

Good deal, Elena - well, at least it appears you're near the END.  I've heard BA is a difficult lender with which to work when it comes to short sales, guess this illustrates it pretty well!  All the best to you!

~Troy

Feb 07, 2010 12:51 AM #4
Anonymous
Anonymous
Bob Young

Hi Elena, I know what is like to be in BofA HELL.  This Bank is too big.  I wonder what the qualifications of a phase I negotiator is.  I wonder what the qualifications of a phase II negotiator is. Do you think they ever meet?  are they in the same city?  State?   BofA makes the federal government look efficient.  I think the LA Times should do a story on this.  Until and unless these banks get their act together and actually work with clients and agents efficiently the market will continue to recover very slowly......great work.

Feb 23, 2010 05:02 PM #5
Anonymous
Anonymous
Elena

Bob and Troy, thanks for your responses.  I am still in this same deal and very angry with Bank of America because they can call the shots any way they wish and we have no recourse.  The listing agent in this short sale told me today that BofA does not want to recognize a recorded lien on the property and thereby will not negotiate. 

Granted, the property has 3 liens, BofA has agreed to pay some money to the second because it's a BofA HELOC, but nothing to the third who happens to be Wells.  And Wells is demanding 10% of the balance before giving an approval.  Now I have heard that any short sale with 3 liens one should forget about it.  I wish I had!  But doesn't the Borrower get a chance at salvaging their credit too if they have lost their job and are unable to keep current on their underwater mortgage?

Bob, your idea to get an article in the LA Times sounds like it's worth a shot.  We need to start shaming the banks, unfortunately the Banks have no morals and couldn't care less what we think of them. 

Mar 03, 2010 02:01 PM #6
Rainmaker
1,450,678
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Hearing SHORT SALE, usually requires an aspirin, as they come with headaches and the need for a ton of patience whether you are the buyer or the seller!

Jun 10, 2012 08:49 AM #7
Rainmaker
334,066
Inna Ivchenko
Mannis Real Estate Group - Calabasas, CA
Los Angeles / Valley Homes

Any Realtor that involved in short sales should be 'at the top' of this game. If you are knowledgeable about this process, you can be very successful, if not.....it is just a waste of everyone's time and....a failure for all participants of the transaction.

Sep 16, 2013 03:20 PM #8
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Rainer
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Elena Lobito

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