Bank Of America Short Sale Application, Forms And Packages

Finding The Right Agent

Finding a right professional to deal with your short sale is the most important thing. The reason for that is that although a short sale is a commonly occuring thing but still there are very few professionals in the market that properly know how to deal with it. The surprises should be kept to a minimum. If you can’t figure out where to turn to, we have got a great team of elite professionals nationwide. Click here to request a call from a short sale pro or call 888-934-3444. 

Get The Property Listed!

There is one more step you will have to complete to start your short sale process and that is to get your property listed. You will also have to work with a broker to do this so that your property gets a fair review as the lender will expect that you do this. Just bringing an offer to the lender will not be allowed. Documents such as the MLS Listing and MLS History will be demanded as a proof that a property has been properly listed. Untill this process has been completed you can not proceed further and the First of the documents that you will need for the process to go forward will be the listing agreement.

What is a short sale?

When the offered amount for the property is not enough to pay off all the debts taken against the property then in real estate that sale is known as short sale. Bank Of America will never be able to review your application unless you have an offer. They will need to check that once all the closing costs have been deducted from the amount what will be the net amount that you will be making them. Past due taxes, non-recurring closing costs, attorney fees, settlement fees, title fees, and anything else that may apply are all included in it.

Find The Right Buyer For Your Short Sale

Strong Short Sale Buyers

A potential buyer should always be ready to wait as that is the most important quality a buyer should have. A buyer who is ready to wait is always better than an all cash buyer and even the buyer whose offer is more. To make sure the offer is solid the broker will need to interview the candidates. Only the buyer is not importnat but the broker representing is also very important.

Previously Approved BAC Short Sale

Often some brokers advertise that their short sale was previously approved by BAC but this is misleading. Even if BAC had previously approved their short sale and all the terms were met still they will need to make a .

Submiting Your Short Sale Package to Bank Of America To Get The Process Going.

What is in the Bank Of America Short Sale Package?

Usually all the lenders require the same kind of documents and BAC is also included in those. Following is the list of documents which are usually asked for: a listing agreement, a purchase agreement, proof of the buyer’s ability to perform such as proof of funds or a prequalification letter from the buyer’s lender. That’s only the beginning. As a short sale seller it will be a requirement from you to submit your financial information such as a monthly budget, your tax returns for the last two years along with a 4506t to show the returns were actually filed, pay stubs or proof of income like a profit and loss, bank statements, reason for requiring to do a short sale, and a hardship letter.

Getting The Right Value Goes A Long Way.

There is onlyone way of knowing whether you qualify for the short sale or not, and that is by completing a value. To complete a value the agent compares similar properties in the are which are either currently listed or have been sold within 3 to 6 months. Many conditions like home’s perceived condition, the size of the living space, the size of the lot, how many stories it has and whether or not it has a pool are considered by the agent. Market conditions and how fast homes are selling in the area are taken into consideration. There are many factors that are taken into consideration.

Short Sale Appraisal Values

There is always a lender supporting Bank Of America and that lender is already facing a loss so the lender will want to complete a Broker’s Price Opinion (BPO). In case the lender requires a deeper insight they will obtain an appraisal. Appraisers have specific licenses for valuing properties. Some investors such as Fannie Mae (FNMA) complete two appraisals. The type of value completed varies from lender to lender and investor to investor.

Filing Value Disputes and Variances

Sometimes a value returns too high, then what? This is something that happens very often and to both the professionals and rookies alike. Sometimes the broker makes a mistake and compares properties which have nothing in common because he/she is not from the area.

Bank Of America’s Short Sale Time Line Coming To An End.

This will be the time when undersigned will have to decide whether you qualify for the short sale or not and whether to forward your file to the management. Usually an auditting process occurs before presenting the file to the management and then there is a another before issuing the approval letter.

Bank Of America Counters Short Sale

Unfortunately this can also prove to be tough time as this is also the time when BAC may give a counter to your short sale of may completely reject it. There is a need for a special set of skills that come only by experience to compete with either of these situations. Easy tasks can be done by anyone but it is the difficult tasks that are hard and seperate the experts and rookies.

Short Sale Escrow.

Closing of short sale process is very similar to the closing of typical escrow processes. You will be allowed to move forward with the typical escrow process once all debt holders have given their approval. A title search should now have been completed to assure that all the parties affiliated with the property have been addressed.

Bank Of America Issues Short Sale Extension

What happens if the approval letter expires and we are not able to complete the short sale process? This is a question we get all the time and there isn’t a simple answer to it. It depends on delinquency of the mortgage, whether the value they had expired, and many other details. Consult one of our professionals if you need more time to see what we are able to get approved with Bank Of America’s Management. Results may vary greatly but the best part of our services is we only get paid if the transaction successfully closes (we are generally paid from the real estate comissions awarded to the agents involved and paid out of Bank Of America’s net).