If you have been negotiating short sale, you have been exposed to Bank of America’s new system for short sales called Equator. The new system was put in place to “speed up the process”. We have obtained several approvals now through the system and have gotten familiar with the process for using the Equator system. We will walk you through a typical short sale. All time limits are set by Bank of America.
- File initiated in the Equator system and third party authorization uploaded
- Listing information and buyer information uploaded into Equator
- Purchase contract uploaded
- MLS, pre-approval, HUD-1 and MLS photo uploaded
- Seller calls in and sets up their side of account
- Seller receives email with temporary password into Equator account
- Seller sends temporary password information to Berlin Patten.
- Berlin Patten logs in, completes financial information and uploads paystubs, bank statements and tax returns
- BOA checks “vendor” status (verify we are all who we say we are)
- BPO is ordered
- BPO is received back
- File is assigned to a negotiator
- BPO value is input into the Equator system
- LRV (Loan Value Ratio) input into system
- HOI (homeowners insurance review) is done
- Payoff quote is ordered
- Payoff figures are input into the Equator system
- Soft credit pull is done to check Seller Beacon score
- Foreclosure Value bid is obtained
- Negotiator must input NPV (net present value)
- Negotiator must now analyze the offer
- Negotiator must now negotiate the offer
- Tentative yes, or a counter offer, or a decline is received.
- Yes or counter offer must be replied to.
- Negotiator must now analyze the offer
- Negotiator decides whether to accept or reject or counter the counter-offer as presented.
- If negotiator counters we return to Step 20, If negotiator accepts we move to Step 28
- Negotiator must input NPV (net present value)
- Negotiator must now review and prepare file for final Investor approval
- If loss ratio is high file sent to Executive Review Committee for clearance
- If loss ratio is very high file then sent to Senior Vice President for clearance
- File sent for outside (Investor) approval or counter-offer.
- If counter-offer go back to Step 20, if approval to Step 34
- Investor approval received
- Approval letter prepared and sent thru Equator
Although complicated, this process has resulted in some improvement to Bank of America’s short sale approval timeframe. However, it remains a lengthy one, as you can see, and the parties should continue to be apprised of this fact whenever possible so that expectations remain reasonable.
Written and posted by Karen Gagliardi, Business Development Coordinator with Berlin Patten, PLLC.
