Bank of America #1 Foreclosing Lender
Just wanted to put it out there that I got an approval letter from Bank of America for one of my listings that I have been working on now for 6 months! As a Certified Distressed
Certified Distressed Property Expert
Property Expert, this is certainly a great feeling because I’ve been able to help one of my clients out of a tough spot. This always the best thing about a short sale. At the same time this has been a tremendous learning experience because working with Bank of America is unlike working with any other bank because they are so massive. Although many other banks use the equator system to negotiate short sale Bank of America uses it uniquely. We will just say that it is a little more impersonal than most banks! This should come as no surprise because of the huge presence they have and the amount of short sales they need to work through as the #1 foreclosing lender in the country.
The long time frame is the toughest part about dealing with a short sale and working with Bank of America tends to exacerbate the problem with their long lapses in communication. Buyers in a short sale transaction tend to get frustrated after several weeks with no response and decide to withdraw their offers. This can be maddening for the listing agent in a short sale. It must be made clear to any potential buyer in a short sale situation that they should expect it to wait several weeks if not months before they hear a response from the bank. With Bank of America it often comes closer to 2 months before anything is heard from a negotiator.
Despite the long time frames it can be done! Setting expectations for both the buyer and seller is the key and if everyone knows what to expect as far as the basic framework then the deal is much more likely to be approved and ultimately close. You must be willing to play their game and they want to negotiate! It is wise to ask for extra closing costs and fees in the original offer as well as a lower price so there is negotiating room to work with later in the deal. The BPO is the most important factor and making sure that the BPO comes in at a reasonable place is the key to whether or not the deal will ultimately go through. Make sure the BPO agent and the bank are looking at the same comps that you and the buyer saw when agreeing to the offer.
These are just a few of the tips that I have picked up on this deal with Bank of America and other deals with banks including Saxon, Mortgage, Chase and GMAC. Congrats to my client on finally getting the approval we have been working so hard for the last several months!