Bank of America 2012 Short Sale Changes- Guidelines and Timelines:
Bank of America changed their short sale processes and timelines effective as of June 15th 2012. BofA has tried to streamline the process to make the turnaround time faster on all short sales in an attempt to help more homeowners avoid foreclosure through a short sale. As a word of caution to all consumers who are possibly a candidate for a short sale, make sure you use an agent who has experience handling a significant amount of short sales and has a proven track record.
All files started after June 15th with the exception of FHA backed mortgages are going to be set on a 60 day response time. This means that within 60 days of the bank receiving an offer on the property a decision has to be rendered. Within 30 days of short sale request submission, the homeowner should receive approval that they can participate in a short sale, and the valuation of the property should be completed. As this is so new we have yet to see the effectiveness of this. Please note all timelines mentioned here are from the date the bank determines you have a full-complete short sale package.
Relocation money being offered on more short sales: FHA and HAFA short sales provide for mandatory relocation money to the seller, but in an attempt to get more borrower participation non-HAFA or FHA cases are going to be offered relocation money. Relocation amounts could range from $3000 up to $20,000 depending on the circumstances.
Required written proof of hardship-
Bank of America is still requiring written proof of financial hardship as it pertains to a request for short sale-but in some cases such as a Co-op short sale, which we will talk about in detail in the next post, they may only require limited financials as compared to the robust package asked for in previous cases.
If you are not aware already, Bank of America requires that all third party authorization letters must be on their Bank of America specific form, and there is now a required BOFA contract addendum once a contract is received.
BANK OF AMERICA HAFA CHANGES:
BOFA has implemented that the turnaround for HAFA is going to be 60 days-this is a two step process. With step one they have to qualify the homeowner to see if they can qualify for a HAFA short sale, then they have to negotiate the short sale once they get an offer in hand. HAFA guidelines have changed to allow for more flexibility in allowing more homeowners to qualify under the HAFA program. Please note that this change may not apply if your loan is owned by Fannie Mae or Freddie Mac.
The recent changes are certainly strides in the right direction. Stay tuned for the next post where we talk about a great program, the BOFA Co-op program. If you are facing foreclosure and need assistance with a short sale, contact me today-I am one of the most experienced agents in the country with several hundred short sales closed.