Can Buyers Speed Up a Short Sale Review?
Short Sale Review Has Limited Roles for Buyers, Buyer’s Agents & Well Meaning Fathers
I received a message submitted from this website from Dave that said:
“Your web site has the best information I have seen. I am trying to help my son purchase a short sale home and am frustrated with the not only the slow response from bank of america but my nagging suspicion that neither the buyer nor the seller agents have a clue of how to this process works. As a former CFO I want to start calling the loan mitigation department and try to assist in getting this done.We are in California. Can a representation of the buyer legally call B. of A. and start pushing this along? Thanks for your help and you are providing a great service to not only your clients but the economy as a whole. Thanks again”
So, I responded by saying:
Your feelings that the agents are not fully trained are unfortunately very common. Send them to the website and it might help, even though some agents may not think they need it.
The bank is not supposed to talk to you without authorization from the borrower. The borrower’s financial information is confidential and they are supposed to keep that private. You might be able to call just to express the frustration of waiting so long, but that might be counter productive if you get a jerk on the phone. One thing the loss mitigation negotiator can do to get rid of you is to give you an approval on the short sale that you cannot live with e.g. approve the sale at a price you cannot afford.
One way you might help is to find the actual investor who owns the loan. It might be Bank of America, but it might not, as they could be servicing the loan for someone else. You can go to the Mortgage Electronic Registration System (MERS) and see who actually owns it. Then, try to get in touch with them. They will not talk to you about the borrower’s information, but you may be able to discusss how long it is taking to get a response and encouraging them to get in touch with the servicer to speed up the process. Again, you have to be concerned with an approval that does not work for you by the servicer.
The best way for all this to happen is for an experienced listing agent to be making these calls. Since you are not trained in this field, there is a chance you could make the lender upset and get an approval that does not work. Unfortunately, there are some agents who do not know how to make these calls, or who do not make these calls. So, you have a tough choice to make
If you have been waiting a couple of weeks, that is normal. For example. ASC has a normal review time of 25 business days, i.e. five weeks. Bank of America is normally less than that.
One thing you can do is to be sure that the short sale package is complete. Check with your agent to get a list of everything that needs to be in the package submitted to the lender. Then, be sure the listing agent has it all together and has submitted a complete package. Some delays are caused by the bank asking for more documents, then setting the file aside. Once you are at the bottom of the stack, you have to work your way back to the top of the stack to be considered after the requested documents have been received.
One thing you can do to help the process is to get in touch with the Mortgage Banker’s Association and encourage them to do the Foreclosure Alternative Plan that is part of the Making Home Affordable Initiative. Take a look at the post on this website that has a picture of Obama for more information. If banks did that, the process would be quicker when an offer comes in, because much of the work would already be done, and the only review would be to see if the offer is within an acceptable range of the Broker Price Opinion that they already have.
Good luck, and thanks for participating in the discussion on this website.