Bank of America (BAC)

BAC has gotten much, much better at handling short sales, whether it's the traditional short sale, HAFA or and FHA backed short sale. A weekly call still needs to be made to stay on top of them. Some of those on the other end of the line aren't as knowledgeable as they should be, but for the most part - they're on the right path to streamlining their processes. Once the file gets into the hands of a negotiator - then things go more smoothly. 

Read the tabs HAMP-HAFA and then take a look at the tab Required Docs.

Here is part of the BAC process:

BAC Staff will review your information and check your eligibility for a Home Affordable Modification or other home retention programs that would reduce your monthly payments to enable you to stay in your home.

If you do not qualify for a modification or no longer wish to stay in your home, then they will begin to work with you on a short sale.

They will need to determine an acceptable price for you to market your home. To determine the fair market value, they will order a valuation/appraisal of your home.

They will also work with all parties necessary to approve your first mortgage HAFA short sale request. Even if you are pursuing a short sale, in most cases, there is a third party that has ownership of the loan. They will need their approval in order to finalize the short sale.

If the sale is approved, you’ll receive a Short Sale Agreement with the acceptable offer price for your home. You’ll need to sign and return this agreement within 14 calendar days.

If you have a Bank of America home equity loan or line of credit (also referred to as a second lien), they will take care of getting approvals for your HAFA short sale request.

But, if your home equity loan or line of credit is with another lender, Then we will have to contact that lender and have them sign a Second Lien Release form before any offer can be considered. To avoid any delays, it’s in your best interest to start their short sale process right away.

Under a HAFA short sale, you are required to work with a licensed real estate professional. We strongly recommend working with an agent who has experience with short sales. We can help guide you through the process, and you won't have to pay the cost of the agent since they’ll be paid from the sale of the house.

Typically, you’ll be given 120 calendar days to market and sell your home.

Once you receive an offer, you will have 3 calendar days to submit the offer letter (signed by the buyer) as well as a Request for Approval of a Short Sale. If you have a home equity loan or line of credit on your home with another lender, we will need to get a signed Second Lien Release from them.

Once the offer is submitted - we should hear back within 10 business days.

BAC will provide you with an approval letter releasing the home for purchase. With everything in order, final documents will be prepared for closing. You will receive a letter outlining the details of the sale of your home and a set of the documents that must be signed, notarized and returned before your HAFA short sale can be completed.

As with any home sale, unless otherwise negotiated, you will need to move out of your house by the closing date. At the closing, you will receive $3,000 to help you with your relocation expenses. The sale of your house is now finalized and your mortgage and any other loans against the home are settled from the proceeds of the sale. Under the Home Affordable Foreclosure Alternatives program, you are fully relieved of any obligation to repay the mortgage.