I am representing a buyer on a BOA short sale. The listing agent has already admitted this is his first short sale and he is overwhelmed and doesn't really know what to do. We submitted a cash offer for full list price and it was accepted by the seller. Listing agent's assistant called me last night asking for my buyer's first 5 digits of ss# and his birthdate. She claims she cannot enter the offer into Equator without that information. I've closed 4-5 short sales in the past 12 months (on buyer's side) and have never been asked for this before. Is this a new requirement? Any way around it? My buyer refuses to provide the information - he doesn't trust BOA with it.
Thanks for any advice you can offer!
Sharon Burgos, Broker/REALTOR, SFR
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When a lender asks for buyer’s SSN, DOB, Address, and phone it’s NOT a credit check, it’s to run the OFAC. Essentially this is done to ensure that the buyer is not a terrorist and that they are a US citizen.
The explanation of OFAC is this:
The Office of Foreign Assets Control (OFAC) of the US Department of the Treasury administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United States. OFAC acts under Presidential national emergency powers, as well as authority granted by specific legislation, to impose controls on transactions and freeze assets under US jurisdiction. Many of the sanctions are based on United Nations and other international mandates, are multilateral in scope, and involve close cooperation with allied governments.
I just add zeros or ones and it will take it
This has been an Equator/BOA requirement for quite a while now. I even questioned in at the Equator training class a few years ago. No way around it...except, just enter some info. I personally don't want the buyer's info so I just enter what is needed to keep the file moving. Spending time questioning the logic of the lenders will drive you nuts so if it something that you can give them and it really isn't a big deal, just enter the correct number of digits and hit submit.
Nope, nothing new, BofA has been doing this for quite some time. What does your buyer think they are going to do with an incomplete SSN and birthday?
He says that armed with the first 5 digits of his ss# and his birthdate along with full legal name, someone could conceivably figure out the last 4 digits and that's how identity theft occurs. With big banks and other businesses mailing out notices that say things like, "I'm sorry, but our internal database was compromised when someone lost a laptop, etc. etc. your personal information may be at risk. Please contact blah blah blah to safeguard your identity...." consumers are not very happy about providing this info without a REALLY good reason. I've gotten two or three emails like that in the last year from various businesses who store my info and credit card info online. Most recently, from BOA! My husband's info was compromised and debit card had to be re-issued due to a "security breach". If BOA is not going to do anything with the info, why do they need it?
It is highly unlikely that someone at BofA is going to take the time to try every single combination of SSN. I have never had anyone with a problem with it and we have done hundreds of BofA short sales. BofA has been doing this since they started in equator and that really should have been something that they buyer agent should discuss with the buyer before ever showing a BofA property.
It is actually very simple, the buyer can refuse and most likely have to move on. It seems as though you have a limiting belief that consumers are not happy about providing this info without a really good reason because there are plenty of BofA short sale buyers out there who have no issue with it.......
I agree with you, Jeff, I wasn't thinking about someone at BOA. I'm thinking about all those "security breaches" where data is compromised and stolen. The example I stated was actually BOA writing a letter informing my husband and me that our personal information and debit card info had been "compromised due to a security breach" and therefore, we should be on the alert for any strange charges. I think they even agreed to pay for a monitoring service with a credit bureau. Point being, data is never 100% safe and while we can't let it stand in our way when required, I don't think it's a bad thing to be cautious about handing over ss#, birthdate, etc. to any entity that asks and ultimately, that is my buyer's decision. I advised him to provide the information, he balked and told me his concerns, I relayed that to the other agent. He may have to move on - with the amount of inventory out there and cash in-hand, I have a feeling he won't be looking for long.
Every short sale we do BofA wants the buyer info including phone and current address. Nationstar asks for the last 4 of the SSN.
I wonder if there are regional differences? I'm involved (as buyer's agent) in short sale with Nationstar as lender and we've not been asked for any ss# info at all. It's been entered into Equator and waiting for review. Good to know - this is something else I've learned here that I will be sure to tell buyers about in the future! I guess I've been lucky - I've closed 5 short sales (as buyers agent) in past 10-12 months and my buyers have never been asked for any ss#, date of birth, etc., nothing beyond what is on our Offer to Purchase.
It is required on all BofA files in equator no matter the location. Some people just put in fake numbers and have no issues with it but I would hate to be the one that BOfA decided to audit and then kill my short sale... If it is not on equator, then it is not required (FHA for example)
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