Bank of America Short Sales might not close...
Many agents that have listings in Equator and are dealing with Bank of America short sales have been notified of their listing being "service released" or (SR) in "So many days". These events have sky rocketed over the past few months for many agents and negotiators.
Many of Bank of America's loans have been "Service Released" which in short sale terminology means that this short sale is no longer going to be able to close with your current servicer such as "Bank of America" or any other lender that you may have been given this notice from.
If you have been one of the chosen loans that have been serviced released then you need to find out who the homeowners new servicer is, and the new applicable information from your homeowner pertaining to that new loan. You should be asking your homeowner to be looking out for any new Bank of America letters that they have been sent. Especially recently.
It can be a real hurdle when one cannot use the systems that they may be used to when working in short sales. Many of the new servicing company's cant wait to get a hold of your offer and tear it up with their new investors guidelines and timelines. Do not be afraid of turning that stalling short sale over to an experienced company that knows how to navigate through all of the short sale systems, and companies guidelines that can stop any good short sale in its tracks.
This notice is to help agents and homeowners be more prepared in what you may be either experiencing right now or may experience in the near future. Its not the end of the world if that short sale is put to a halt. It is a real pain in the rear end! But many short sales are still salvageable if the homeowner doesn't have an upcoming sale date in the next 7 business days. Many banks require at least 10 business days before an auction date in order to review and possibly suspend or delay an upcoming sales or auction date. The most important thing to know is that "time is of the essence". It is important to get your short sale package ready as soon as possible. The better you are prepared for your seller, the better your outcome will be. Its important to inform your seller about timelines that they may have to deal with. Being honest about getting the same information out to everyone, so that no one is surprised will be invaluable.
Our question is, Why are so many of Bank of America loans being service released lately? Now it could be a coincidence, but it could also mean something very different. It could be sign for greater things to come. Bank of America lead the County in Short Sales over the last three years. Maybe this fast liquidation of non-performing assets has turned out moving their own assets in the wrong direction for them... Or did it? Remember that many of these banks have made money during this economic downturn. They were bailed out and then started selling off their assets. Shortly thereafter they realized that getting very big wasn't such a bad thing if they had possibly mismanaged their own credit or money. They knew and still know that being too big to fail isn't something that our government will stand for.
Some of these banks may want to merge with another big bank and if they do, it may not necessarily be a good thing. This Country cannot afford to bail out another bank or major investment company. There simply is not enough transparency within our Banking institutions no matter what they say about 'Dodd-Frank".
I just hope that no matter what these big banks decide to do which one another, that they do it with integrity and to preserve the institution of banking. Not to continue to manipulate each other or the people that use their systems.
I trust that we will continue to be very busy in short sales for the next 10 years or more. There are many homeowners that need your help and assistance in guiding them in the right direction. I know that it will continue to evolve and agents will continue to help homeowners buy and sell real estate, just as they have for over a hundred years now.
Sincerely, your short sale expert and friend, Stacie MacDonald