We have been seller approved since April on a home in So California, and are awaiting bofa approval.
We just found out that the traditional shortsale went to a COOP short sale in August.
We just got notified that it is now set up for Auction on Oct 17th, we already had one auction postponement.
This has been an extremely frustrating process, any insight would help.
Timeline:
April signed offer
Early May seller approved mls updated and showing contingent
June Bank ordered BPO and two weeks later, an appraisal
July price increase on property
August price drop and mls update and still contingent
and here we are now...
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In layman's terms, here's what I think happened:
1. The SS was initiated as a HAFA or traditional short sale in April/May on Bank of America's "Equator" system (their online platform for processing short sales.
2. One of Bank of America's 3rd parties was assigned. Most of them a VERY slow.
3. Valuation was finally ordered after almost 2 months elapsed.
4. ??? Somewhere along the line, the file was either declined or requested to be declined based on the Short Sale "strategy": HAFA with an offer, HAFA without an offer, Co-op without an offer, Traditional, etc. Perhaps the homeowner or agent found out there can be a relocation allowance compared to traditional where there is no relocation.
Unfortunately, your valuation done in June is over 90 days old now and it will have to be redone.
Just pure speculation here -- there's a chance that the agent/negotiator did everything they were supposed to and just ran into the process flaws and bad luck. I've been there before.
I now that it is frustrating, but this is not a long time yet. Whoever is negotiating the short sale should start contacting the servicer every other day. Once the BPO/appraisal is performed it is a matter of days before an offer should be accepted or countered.
Paddy Deighan
http://www.homesavers.pro
I have found that if you contact the BOA Advocate of the CEO Office you reach a team of BOA people whom can get results! Have the Seller's Agent call 1-704-386-5687
If you've been waiting on BofA approval since April, someone in the chain is not processing the short-sale correctly. With a stern approach you can make it through a BofA approval every time in 60-90 days. They need to get an escalation specialist with BofA Home Loans to assist them in pushing back the sale. This isn't easy with BofA.
The same happening with my case. If no closing in 120 days, then the BOA will delete everything from the Equator and will denied the offer. We start all over with the traditional short sale.
xx
Thanks for responding Brett. The sellers agent is stating that our offer is still the only one on the table. We just want to know if we are wasting our time with this. We are worried that a new auction date has been set as well. Also, is this something that is standard, or do you think we are done?
It's difficult to make a proper diagnosis without being involved, but by the information you provided and the fact that an appraisal was completed It looks like the file is moving forward. Don't lose hope as it doesn't seem like you've received any news that we'd consider a red flag. It just looks like the file was processed slow due the time frame you provided. The short sale process always varies in time. We've seen deals approved and close within a month and deals that take as long as year and everywhere in-between. There are just so many variables that play a role as every transaction is different. What is the property address? I could check if there is a foreclosure sale date. You're still in the game!
A CO-OP short sale is a program only Bank of America offers. It's a program for short sales to begin when there is " no offer " and it offers a seller incentive. In short terms an appraisal gets completed and then the investor will advise what to list the property as. A Task will be triggered in equator for an updated listing agreement matching the asking listing price. Documents uploaded and then the offer and figures submitted. Then a possible counter of fees/purchase price. Then the negotiator will sent the package if complete off to QA for audit and then it will go under review for final decision. Sounds like the transaction didn't really get moving till around June for you. Any questions feel free to ask and I'll do my best to answer them for you as I am very familiar with the CO-OP process as I have closed at least 30 BOA CO-OP files. For some basic information on CO-OP short sales click here