Replies to This Discussion

Permalink Reply by Inesa Vasilonoka on August 24, 2012 at 5:07pm

Hello,

you can initiate the short sale on Equator.com as a short sale without an offer. You might want to go to www.bankofamerica.com/realestateagent for great tutorials and other resourses on how to do it step by step. You will need to submit seller's documents through tasks on Equator, then Bank of America usually order a valuation of the property. When the results are in from the valuation, you will receive a Valuation Letter that will tell you what is the suggested list price and then you will submit a listing agreement at the suggested list price to Equator. The marketing time will start, you can list the home and get an offer, then you have to submit the offer and estimated HUD-1 to Equator. Your negotiator will review everything and send it to the actual investor if the offer is approved, then you will receive short sale approval letter with buyer's name, net proceeds, closing date, etc. You can close escrow now. This works great if you don't have an outside 2nd mortgage. I like this short sale version versus the traditional kind because I know the price ahead of time.

Estate issues....your negotiator will guide you through the required documentation on this.

Permalink Reply by joe beauchamp on August 24, 2012 at 6:30pm

You need to know, or will soon find out, who your investor is. That is who sets the rules. FHA/VA do not go through equator. Freddie and Fannie each have their own HAFA/co-op programs via BofA for files w/o offers.  Usually, you can get the SS started w/o buyer. If you end up in HAFA at BofA, you must be vigilant. These are notoriously slow and cumbersome - probably due to the fact that every step is OK'd by a hidden group in BofA and that adds a ton of slowness and often goofy "decisions" with no way of actually getting to the people who make the decisions.

Death cert, proof of executor is usually the only wrinkle in that case (OK, BofA FHA has been a big mess - and I actually had a negotiator ask for pay stubs - don't laugh, they can require equally insane things and insist upon them..).

You can run into trouble because BofA is behind on properly documenting the property. You won't find out unless you have a sharper SS rep suggest it as a reason things aren't moving. Call Customer Service (after sending in authorization) and see if they have the property as an estate instead of as something else.  I don't know if it always is a problem, but it has been so with at least one of my files. Unfortunately, this seems to take them months to change it - it takes the same death cert to get it changed.  You may also want to just keep this in mind and NOT call them because it is just as likely that they change the designation at some point and that could trigger something bad in the middle of your short sale. So, maybe just call them about this if you find yourself stalled..??

Permalink Reply by TOP END Properties on September 11, 2012 at 5:37pm

I always initiate the Short Sale immediately and find out what their process is going to be.  Usually you can get a few steps out of the way (i.e. they need to try a loan mod first) .. other times they will just tell you to re-initiate once you have an offer.