Breaking News from Bank of America and Equator on Short Sales!

07/13/2011

FOR IMMEDIATE RELEASE

SUMMARY:
If a backup offer is necessary at any point during the short sale process and you have one ready to be submitted, you don't have to restart the short sale from the beginning.

MEDIA CONTACT:
Chris Black, Esq.
Winged Foot Title
(239) 985-4142
WingedFootTitle.com/contact

For a long time, one of the biggest frustrations in dealing with Bank of America short sales had been that, under seemingly harmless changes in circumstances (e.g., original buyer walked; name change; original offer declined as insufficient), they made you re-initiate the file in Equator and start the process over. One can easily imagine how frustrating it has been, for example, to orchestrate a short sale approval only to find that we would be forced to start the whole process over because the system would not allow us to substitute a new buyer at the same or sometimes higher offer amount! This system flaw has created a lot of hardship, especially for those who thought they might have been putting an offer in on a so-called “bank approved” short sale. In reality, there was no such thing (see our video on that topic here).

Well times and fortunes are apparently changing. According to a recent update from Bank of America and Equator, LLC -  “[i]f a backup offer is necessary at any point during the short sale process and you have one ready to be submitted, you don’t have to restart the short sale from the beginning.” Music to even our hardened ears! We won’t bore you with the Equator mechanics. After all, that is what we do for you! so that you can get out there and sell more real estate. What we can offer is a couple of tips for dealing with Bank of America short sales in light of this recent development.

  1. Don’t Expect or Advertise “Bank Approved”
    • To be fair, the report does make clear that “[a]ny backup offer – regardless of how similar it may be to the previous offer – will require analysis and investor approval, which will add time to the short sale process.” While we may be able to avoid the duplication of the basic Equator steps, the substitute offer will require some additional time.
  2. Qualify Your Backup/Substitute Offer
    • Based on the information in the report, the best practice is to have a qualified backup or substitute offer in place before notifying Bank of America that the original buyer has walked or that the original buyer will not meet a counter offer. It is imperative to understand that by “qualified” we mean that you should have:
      • Fully Executed Contract
      • Buyer’s Realtor’s Contact Information
      • Buyer’s Proof of Funds
      • Buyer’s Address, Phone & Email Address
      • Buyer’s Birthdate
      • Buyer’s First Five Digits of Social Security Number.
  3. Keep “Tire Kickers’” Info. Handy
    • Those who might have looked but not made offers on your short sale listing may make good candidates for substitute offers. The fact that the process may be a bit more streamlined may be attractive to them. Keep their or their agents on hand as you will need to act fast when you need a backup (see no. 4, below).
  4. Act Fast!
    • If the original offer is declined as insufficient and if the original buyer will not increase their offer, the backup offer needs to be in place almost immediately. Ordinarily, we are given 5 to 10 days within which counter offers must be answered in the Equator system. Although we have yet to see this new system in action, the report suggests that
      • We would have that same initial timeframe (5 to 10 days) within which to notify the Bank of America short sale specialist that we have a backup or substitute offer; and
      • We would have only “14 calendar days” to complete Equator tasks related to the submission of the new offer.

We will absolutely keep you up to date as we get some real-life experience with this new development. In the meantime, please call on us to help you with not only your Bank of America Short Sales but also with any short sale, refinance, REO or standard purchase and sale. We are here to help and to provide and exceptional experience.

Call 239.985.4142 or contact us for a FREE Title Insurance Request today!

Serving Fort Myers, Cape Coral and Naples, Florida.

Winged Foot Tite, LLC is not associated with the government, and our [short sale orchestration] service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.