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Bank Of America Cannot Service Their Short Sales

by Charlie Allred

Finally! The heavens have opened and someone gave this huge corporation a brain! OUTSOURCE! Bank of America has begun using a third party (Equator) to negotiate their short sales. If a company is only getting paid if the deals get done, guess who will speed up their service – the company getting paid.

Equator, formerly known as REOTrans, has created an online system for real estate professionals to submit all documentation through this online software. The days of faxing and re-faxing because the banks lost your client’s documents are over! It always shocked me how many documents the bank “never received”.

This system is great, you upload all documentation. All emails are tracked through the messages portal, you can add any additional info you need the bank to have. You are assigned a negotiator and the BPO (essentially a mini-appraisal) is ordered through the system. You are not waiting for an actual human negotiator to get around to looking at your file!

There are a few downsides to the system- if you need an immediate response, Equator cannot help, you still have to call the Bank of America Short Sale Department- so expect to be on hold for 20-30 minutes waiting to talk to someone. You still have to call to postpone foreclosure, and if there are any gliches- Equator claims they are just the software provider. So when I had a problem recently, the bank never sent us, the agent, the approval letter, I kept calling and calling Bank of America and it took 2 weeks to resolve. Lastly, if you have a 2nd mortgage that is larger than the 1st mortgage, the system doesn’t understand and cannot submit.

The good news about the Equator system- you can generally get an approval in 30 days or less. This trumps the old bank of America system- averaging- 6 months. I had one short sale take 9 months.

Whereas Bank of America used to be the slowest of the banks in responding to short sales, they are now definitely in the mix of the quicker banks. There can still be delays, but using Equator has streamlined a system that did not work. So what is the benefit to the Seller? The Seller can get an approval that they will be able to sell their home, have debt forgiven and have the burden of the home gone, all within 30 days. This waiting period is really the worst part of a short sale. SO this benefits the Buyer too, no buyer wants to sit around waiting for months to find out they are not having the price approved on their dream house. So the time period benefits everyone involved!

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