Short Sale Questions for Bank of America

Hi,

I'm a buyers agent on a short sale with BoA. I know the buyer's offer was probably low but it has taken 7 weeks for the listing agent to get back with us with an answer from BoA. She said the offer was denied with the only reason as "other" from BoA. She wants the buyer to increase their offer. While the buyer is willing to increase the offer somewhat, we would really like to know what "other" means. According to the listing agent "other" is used when there is more than one reason for the denial and she said in this case it included price and she wasn't sure what else could be included in "other." She also said once the bank denied the offer, Equator automatically closed the file and we would need to start from Square One and totally re-submit a new offer.

My questions are: 1) Do you know what other means? 2) Does BoA automatically close the file once they reject, no matter what the reason? 3) This has taken 7 weeks to get any response on Equator, is that normal? 4) Is there something the listing agent can send us from Equator showing the bank's response so my buyers know for sure their offer was submitted and what the bank said? 5) Does anyone know what percentage of the BPO BoA usually requires? The property has been on the market 5 months.

Thank you so much for you help. I'm familiar with short sales but I'm not familiar with the Equator system.

Amanda

Hi Amanda. "Other" can be a whole bunch of things. Some major. Some as minor as a signature not matching. If the the listing agent calls in and ask they can usually find out exactly what the "other" is.

A low offer will not fly. BofA will not accept any deals that are not very close to FMV (fair market value).

BofA can and will close a file if an offer is rejected. Once closed the process starts over.

Equator is just a 3rd party software system. They do not respond to short sale request. 7 weeks is not that long of a period. The time involved really depends on how many entities ( sevicer, investor, mortgage insurance) are involved in the decision making process and who they are (fannie, freddie etc).

The agent is able to print from Equator and can provide a copy of the counter or rejection IF their seller gives them permission to do so.

There is no set percentage of the BPO value that the investor will accept. Their acceptance is based on the FMV. The BPO is just one component of arriving at that value.

I hope this helps.

Replies

Bryant Tutas December 9, 2010 at 2:20am

Hi Amanda. "Other" can be a whole bunch of things. Some major. Some as minor as a signature not matching. If the the listing agent calls in and ask they can usually find out exactly what the "other" is.

A low offer will not fly. BofA will not accept any deals that are not very close to FMV (fair market value).

BofA can and will close a file if an offer is rejected. Once closed the process starts over.

Equator is just a 3rd party software system. They do not respond to short sale request. 7 weeks is not that long of a period. The time involved really depends on how many entities ( sevicer, investor, mortgage insurance) are involved in the decision making process and who they are (fannie, freddie etc).

The agent is able to print from Equator and can provide a copy of the counter or rejection IF their seller gives them permission to do so.

There is no set percentage of the BPO value that the investor will accept. Their acceptance is based on the FMV. The BPO is just one component of arriving at that value.

I hope this helps.

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