April 11, 2012
Dear [California Agents and Brokers],
As you know, C.A.R. has been working on numerous fronts to address your concerns related to short sale transactions. Over the past year, we have made significant improvements through discussions with legislators, housing regulators, and lenders.
I’m happy to inform you of the most recent improvements, which resulted from our recommendations to Bank of America (BofA). The changes will enable BofA short sale specialists to complete tasks such as document collection, valuations and underwriting at the same time, reducing the time from initiation to closing.
Here are some specific changes that are effective April 14:
• In line with C.A.R.’s request and recommendation, BofA’s Short Sale Purchase Contract Addendum will no longer include the agent/broker language, and agents and brokers are no longer required to sign it.
• Changes are being made to the Equator system so that multiple tasks can be done at once. Most importantly, property valuation can start earlier to expedite the short sale process. Some of the “task names” will be changed, so expect a learning curve.
• If a buyer walks away on a short sale, the amount of time to submit a backup offer will be shortened to five business days.
C.A.R. is pleased BofA has made these changes to its short sale documents and process in line with C.A.R.’s recommendations. We look forward to continuing to work with BofA to improve the short sale process in ways that will mutually benefit both REALTORS® and lenders.
For more information.
CALIFORNIA ASSOCIATION OF REALTORS®
Wow, so many questions,
1. Will this affect just California, or those of us in the hinterland as well?
2. Are they changing the new letter of authorization as well?
3. Did they mean 5 business days to respond to the short sale request?
I provided exactly what I received this morning from the California Association of Realtors (CAR).
I think this is something CAR worked out with BofA. I do not believe items 2 & 3 are any differentthan what BofA has already published.
How about all the ammendments we have out w/them now? ha ha