Well it appears Bank of America is yet again pilot testing another new short sale program. Bank of America seems to always be under fire for their lengthy short sale process with hundreds of thousands of homeowners in default. Our most popular blog posts and comments revolve around Bank of America short sales and frustration with their lengthy and confusing process. See related Bank of America Articles below:
- Bank of America formerly Countrywide short sale process streamlined?
- Bank of America and Equator (Formerly REOTrans)…Short Sale Nirvana?
- Bank of America Implements HAFA on Equator for Short Sales
- Bank of America formerly Countrywide New Short Sale Policies and Guidelines
Bank of America's new pilot short sale program is focused on helping homeowners avoid foreclosure. Bank of America has diligently worked to resolve issues with the traditional short sale process by implementing a paperless and streamlined short sale process on the Equator technology platform. This program has had it aches and pains, but is running fairly smoothly and has greatly reduced the time to process a short sale from a languishingly long 8 to 12 months to a more respectable 2 to 3 months.
Prior to Bank of America rolling out the government’s Home Affordable Foreclosure Alternatives (HAFA) Short Sale program in April, they began Cooperative Short Sale pilot program. This program is structured similarly to HAFA in that Bank of America will work with the homeowner and agent prior to marketing the property to gain agreement on the terms of the short sale so that once an offer is received the approval is streamlined. The objective of the Cooperative Short Sale program is to utilize this program for customers that do not qualify or fallout of the HAFA program. HAFA is always considered first and no HAFA eligible loans will be included in the program.
The Cooperative Short Sale program is still being developed and tested by Bank of America with a small number of homeowners. Some specific eligibility requirements will include asset reviews, no second liens or MI on the loan, and require participating investors.
Bank of America Cooperative Short Sale Program similarities to HAFA include:
* BofA will work with the customer prior to listing the home to help establish the listing price using a valuation to determine fair market value.
* BofA will ask that the property be actively marketed for 120 days. If it does not sell in that time, we will consider a deed-in-lieu of foreclosure to satisfy the mortgage.
* Since the appraisal and qualifications are completed upfront, short sale approval will take less than two weeks to complete.
Results from the pilot test will be used to design the upcoming expansion of the program. Announcements will be made when we expand this program beyond the pilot and will outline details of the program.
To read more about Bank of America's HAFA Program please visit their Website. Members of Team Baranowski are Certified Distressed Property Experts. We have over two years experience helping homeowners prevent foreclosures. If you or someone you know is in need of assistance please give us a call at 850-259-1788 or email us at firstname.lastname@example.org.