Has anyone had Bank of America approve the short sale and accept a back up buyer right after the first buyer backed out? They call it a "soft decline" and it's been two months since the new contract was accepted with the buyer paying more money for the house. How long should this take?
I don't understand if the short sale was approved and the second buyer came in with a higher net for the bank why they have not given written approval after 60 days.
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Contact BofA twitter team Bofa_help. Every I have an issue with Bank of America, in which the process is not moving forward, they have usually helped me resolve it in 48 hours.
I just went through this. But, it was the same buyer but the buyer's agent didn't put in the correct name for the LLC. She dropped a word so after a lot of work we had to have a soft decline and then put in the offer with the correct LLC and all updated information I was told it shouldn't take too long to get approved again. Oh, but then they told me they were selling the loan in October so I would have to wait until we found out who the new bank was. When I found out I submitted everything and got a person to have as a point of contact. Then after 3 weeks I couldn't get through on the phone anymore with the loan number or the borrower's SS #. I finally got a human and was told it was sent back to BOA and I had to start over again with them but after all of that we closed last week. I am just like a little bug I won't give up even with all the roadblocks they put up.
In my experience a soft decline should go faster than 60 days, generally I've seen 45 days to reapproval. BofA is going through the process to confirm the buyer is "legit" and the deal is still "arms length", etc. So even if BofAs numbers stay the same or change due to the different contract, they still scope out the new buyer etc which takes time. What is your negotiator (in Equator) saying about the delay?
The mistake was a new price. If you bring in the same price, same terms, they usually accept within 30 days. I know, it makes no sense, but that is the reality. You know for next time.
the soft decline keeps the short sale in process in order for you to not have to start the entire process over again. Sounds strange but if the offer had been a duplicate of the first one, it would have been faster to get the new approval. Since it was different, they have to go through the process all over again in order to get the approvals. I would elevate at this point if it has been 60 days though, that is too long for BofA to hold onto it without word.
Judi,
I agree with you as well. If the offer, terms, and the NET to the lender are the same it is a much quicker process towards re approval. If the bank is NET'ing more it may delay the file.
Amy,
If the file is going through equator and you perform a buyer switch they will " soft decline " the file. A "hard decline" is when the file is actually kicked out of equator and than it must be re initiated. The reason why they "soft decline" the file is because there is a quick remedy in their system to switching buyer's. When you "submit an offer" you input the buyer's names so if a buyer switch takes place they must kick it back to that task. It should not be taking two months and you should be escalating the file to push it forward as quickly as possible. We have seen buyer switches take place in less than a week and re approved.
Brett@ishortsalenow.com
310-564-6389
www.ishortsalenow.com
I agree Brett. When we lose a buyer and replace them, it has been a quick process to get them through. I do say that it is much easier if the new offer is a duplicate of the old one though.
I just had this happen and they called it a "soft decline", it has been a couple of weeks, I now have another offer, wish me luck, I am going to try it.
Thank you for the information, I had never seen this before. I will keep you posted as to how it goes.
Karen Curtis
kcurtis@pru-utah.com
Center for Homeowner Support