I just made an offer on a short sale in Columbia, SC. Accu Bank is the mortgage holder, and I’m just wondering how long I should expect it to take for them to process the offer.

Bank of America Short Sale - What Do They Need?

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Bank of America Short Sale - What Do They Need?

By: Andy Faria
Posted: Feb 02, 2011

Bank of America services more mortgage loans than any other lender in the US. This means they process more short sales than any other lender, and it can be easy to get lost in the mix. The best way to make sure your short sale gets pushed to the front of the line is to supply them with the correct documentation at once and ahead of time. A good real estate broker with a working knowledge of short sales can guide you through this process quite easily, but before you even get started it will be best to begin by preparing the following things:

Hardship Letter - What is the reason you can no longer afford the home? BOA looks closely at this and the fact that your home is no longer a good investment is not enough of a reason to ask them to take a major hit. BOA will deny a short sale offer if the hardship is not a valid reason for hardship, so be sure to pay specific attention and prepare a detailed and accurate hardship letter.

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Pay Stubs - This is for all borrowers that contribute to the mortgage payments in the household. BOA requires the most recent month of paystubs. If you get paid every week it’s best to provide the four (4) most recent paystubs, and if you get paid every other week it’s best to provide the two (2) most recent paystubs. As a short sale offer is reviewed you should set aside any paystubs you receive, just in case they ask for them to be updated later in the review process.

Profit & Loss - If you’re self employed and you don’t receive paystubs you will need to have a profit & loss statement prepared to outline your most previous 3-6 months of business. An experienced short sale broker should be able to help you prepare this simple document that shows the income generated from your business.

Bank Statements - The two (2) most recent bank statements will also need to be provided to BOA. Like the paystubs you will want to set these aside as you receive them during the review process, in case BOA requests them at some point

IRS Form 4506T Form -.This form allows BOA to look into the electronic filing of your previous tax returns and is standard with all short sale and loan modification reviews.

This paperwork is not typically required until an offer is received and presented to Bank of America for approval. It’s best not to wait though and start preparing everything you will need ahead of time, when you first list the property for sale. The faster you get out from under the home, the faster you can start rebuilding your future.

Andy Faria - About the Author:

The author is a licensed real estate broker in the state of MA. He continues to work with homeowners statewide to help get them out from under the financial obligation of an underwater home, without charging them a single dime. Have five minutes? Give us a call anytime Northeast Properties 866-794-1869 Toll Free

 

Massachusetts Short Sale Brokers BOA Short Sale Results

Source: http://www.articlesbase.com/real-estate-articles/bank-of-america-short-sale-what-do-they-need-4156682.html

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Article Tags:
short sale, bank of america, boa, 4506t, profit and loss, short sale broker, northeast properties, hardship

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Not even my realtor can explain what draws this process out so much. It took the bank three weeks to acknowledge our purchase agreement, was told it will take 4-6 weeks more to be approved, and then another month after that to close. Anyone work in that area of the banking industry?
Just to add some more info, we are offering the full price offer so the price shouldn’t even be an issue. Its not like we’re trying to steal the house from under them!

My husband and I are in the process of buying a short sale. The owners already approved our offer and last week we were told the bank accepted it as well. The bank however didn’t send the approval papers, just gave a verbal word. Today we had the home inspection and then after I got home, my real estate agent said the bank got the appraisal, pulled their offer, and upped a counter at 30,000 more than the original acceptance. Is this legal? My real estate agent says it is, and i’ve spoken with another broker who says that as soon as the bank accepted we were in a legal binding contract. He now says that our real estate agent is responsible for the mess up because unless they had a signed acceptance they shouldn’t have told us it was accepted by both the bank and the owners? What do we do?

I was buying a short sale and the seller declared chapter 7 bankruptcy just a few days before the bank approved my deal. Now the deal is off due to the bankruptcy, my earnest money has been refunded. The bankruptcy trustee has awarded the house to the bank, and the bank refuses to speak with me, my agent, or the sellers (former) agent. The property has been abandon for over 10 weeks now. Do I have any options?

I am confused about short sales. Does a short sale the same thing as a preforeclose?? Does someone really want to do a short sale or are they doing it cause they have to and don’t have a choice?

Short sales are a tough thing to master. Having negotiated short sales in central texas for almost 4 years, our company, Superior Loss Mitigation, has seen it all, lenders not agreeing to deals and causing foreclosure over $1,000, or less, homeowners that want a short sale, but neglect to get thier paperwork together, buyers that team up with a Realtor to search for short sales to buy, only to say they don’t want to wait for the deal to negotiated, phone hold-times of over an hour, lender representatives telling us they “don’t do short sales”, and small local companies that hold a lien for a couple of thousand bucks refusing to release their position out of spite, etc., etc. If you can think of a short sale scenario, we’ve probably seen it and dealt with it.

Throughout the hundreds of short sale transactions that we’ve negotiated, the hundreds of meetings with homeowners, and the thousands of phone calls with banks, Realtors, and potential buyers, one of the questions we get asked most often is, “How long do short sales take? The answer to this question, unfortunately is a very loaded one.

In a general sense, on average, they take about 3-5 months to complete from start to fininsh. But, more time may be needed depending on the complexity of the short sale. Here are just a few.

1) Multiple mortgages. If there are 2 or more mortgages on the property, ALL of the lenders will need to be in agreement about the terms of hte short sale. Well, you would think that wouldn’t be a big deal since both lenders stand to lose more money if the property goes through foreclosure (especially the 2nd, since they end up with the big goose egg, $0). However, most of the time the 1st mortgage bank is the one foreclosing on the property, so they get to “dictate” what the other lienholders get at closing…a “like it, or lump it” scenario. Their stance is, “Hey, we’re the ones foreclosing. And if we do that, the 2nd gets nothing. If we agree to this short sale, we’re going to decide our TAKE and their GET.” So, common sense would suggest that if the 1st allows even 5 or 10% of what the 2nd lienholder lent as payoff at closing of the short sale, that the 2nd would be OK with that since their alternative is to get $0 upon foreclosure. This used to be the case in most short sales. Not so any more. The 2nd lienholders have lost so much money on a national level to foreclosures, that they are now pushing back for more than the 1st mortgage’s “allotment”. And often, they DO get more from teh deal, whether it comes from the buyer at closing, the homeowner sends in a lump-sum payment on their debt prior to closing, or the Realtors involved contribute to the 2nd from their commission. We’ve also negotiated short sales in which the 2nd lienholder couldn’t be satisfied, no matter what. This is where the common sense breaks down, because instead of taking the $2k, $4k, or $5k, they are willing to accept $0. Working all of this out, can add an additional month to the process.

2) IRS Liens. It goes without saying that every one of our clients is experiencing some sort of financial hardship. Most of the time job loss is the culprit, and with extended job loss, some of our clients cannot pay their income taxes either and find themselves with IRS liens attached to the property. I’ve had negotiators at the mortgage company tell us that these are “deal killers” and useless to address. Not so. What is often misunderstood is that the IRS liens are liens against the PERSON for unpaid income taxes, not against the actual property. If it can be shown to the IRS that they have nothing to gain from their lien attached to a property that has been approved for a short sale closing, they will remove it MOST of the time. Is it easy to do? Not really, but that’s why a short sale specialist is needed to navigate these difficult situations. Most Realtors and investors that say they can “process” short sales, are stumped when they run into this type of issue. Having to have IRS liens removed can add about 2-4 weeks to the process.

There are many other factors in a short sale that can create additional delays in the timeline like judgments, tax suits, mechanics liens, water softener liens, mechanics liens, etc. Additionally, the buyers can cause delays as well if their financing is not completely approved PRIOR to looking for a short sale property. (Here’s a quick tip…if you get an offer on a short sale you are negotiating, require that the buyer have everything done in regards to their financing EXCEPT FOR their interest rate lock, their appraisal, and their inspection. Upon receipt of the short sale approval, pull the trigger on those things to help ensure that you close on time.)

Check our our video series where we address all of the most commonly asked questions we get in our office regarding short sales. We hope that clearing up the misconceptions, misunderstandings, and providing education about short sales will help get more of them closed and more foreclosure avoided. See our link below.

they will put the property back on the market because they think they can get more for it even though we offered $50,000 over the list price. My lender is telling me it takes an average of 5-6 weeks to close and can’t guarantee that we can close that quickly.

If we aren’t able to close is it likely they will just put it back on the market rather than give us an extra week to close?
Our lender would not accept all of our documents to fully approve us until we had a final approval from the seller’s lender so we are sending them on Monday.