Agent Resource Center

Short Sale Education & Resources

FAQs

Bank of America’s team of short sale specialists is committed to responding to Equator messages in a timely manner. To make the most effective use of Bank of America's response system, please contact the following resources in this order when seeking solutions to your short sale concerns:

1. Your short sale specialist: Send a message via Equator by selecting negotiator (or closing officer) in the "To" field and providing details of your issue. You should receive a response within two business days. If there's been no answer after that time, you can contact...

2. The short sale team lead: Send a message via Equator to explain your issue. You can select the team lead from the drop-down menu in the "To" field when composing an Equator message. Allow two business days for a response. If you still do not have an answer from the team lead or the short sale specialist, you can call...

3. Short Sale Customer/Agent Care: Call 1.866.880.1232 to discuss your escalated issue. Customer/Agent Care monitors Equator messaging to ensure the proper escalation process is followed and tracked.

 

A short sale is a complex and highly specialized type of debt settlement transaction. This can be a lengthy process due to the wide array of parties, policies, required documentation and negotiations involved in coming to agreement on the offer.

To save time and avoid delays with the short sale evaluation, ensure the customer has explored all available Home Retention options prior to beginning the short sale process. Customers who request assistance will now submit a single package that includes all homeowner documents required for all loss mitigation options (including modification, short sale and deed in lieu). A letter will be mailed to customers detailing the required documents homeowner’s need to submit. Once received, the complete package serves as the basis for conducting an evaluation of all options that may be available, including short sale and deed in lieu. This will minimize the need to request additional documents.

The customer may choose to proceed directly to a short sale evaluation and not be evaluated for home retention options first. Ensure the customer contacts their assigned Customer Relationship Manager (CRM) to discuss options that are available to them. For this type of direct initiation a Borrower Election Form will be required before an approval can be provided.

To keep your short sale moving through the process, please ensure that:

  1. Required documents are uploaded correctly the first time.

  2. All documents are completely and accurately filled out (must match title), be legible, signed by all involved parties and the information remains consistent across all documentation.

  3. Please make sure you are using the most recent version of documents and that the documents are accurately filled out before you upload them to Equator.

  4. Do not save Bank of America specific documents for future use. Forms are
    updated frequently, and the ones you saved may become obsolete. For the most up-to-date versions, always use the documents located on the Agent Resource Center.

  5. The offer reasonably meets the current market value. The servicer has a responsibility to mitigate losses to the investor, and all parties have a responsibility to mitigate losses in communities impacted by short sales.

  6. You are working diligently throughout the process to gain approval from outside lien holders. Additional negotiation and third-party approvals may be necessary as all lien holders on the property must approve the transaction.

Before the homeowner can qualify for approval to participate in an FHA Preforeclosure Sale (short sale), they must first be reviewed for all home retention options. Once homeowners receive Approval to Participate in a Preforeclosure Sale, they must actively market their property for 120 days. Homeowners who sell their property through the FHA short sale program within the allotted time may receive relocation assistance. 

Only the homeowner can start the initiation process by working with their assigned Customer Relationship Manager (CRM) and short sale specialist. If the homeowner does not have an assigned CRM, the homeowner should call 1.800.669.6650 to discuss their options for the short sale process.

Unforeseen changes may occur during the short sale process that would prompt you to submit a backup offer to replace the original short sale offer on the property. This could occur if:

  • The original buyer decided to withdraw the offer, but you have a backup offer ready to submit from a different buyer.
  • The original offer was declined for being insufficient, and you have a backup offer that can be submitted.

To submit the backup offer, immediately message your short sale specialist, who will provide the appropriate next steps to submit the new offer. If the original buyer decided to withdraw the offer and you do not have a back up offer available to submit immediately, contact your assigned short sale specialist for next steps.

 

The value of a property is established shortly after a short sale is initiated in Equator. Occasionally, a listing agent may wish to contest that value. When that occurs:

1. Message your short sale specialist that you would like a reconsideration of the value.

2. Receive an investor-specific, easy-to-complete form from your short sale specialist that specifies all requirements for a successful value dispute.

3. Fill out the form, attach specified evidence, upload it to Equator and inform your specialist.

4. You can expect a value dispute review within 10-12 business days once all required information has been received.

Valuation reconsiderations can be requested but are not guaranteed.

 

During the short sale process, loan servicing may be transferred to a different loan servicer. Servicing refers to collecting principal, interest, and escrow payments, if any, as well as sending monthly or annual statements, tracking account balances, and handling other aspects of the loan. We may assign, sell, or transfer the servicing of a loan at any point while the loan is outstanding. Your client will be given advance notice before a transfer occurs. Depending on the status of the short sale when the servicing of a loan is transferred, the new servicer often accepts the terms and conditions of a short sale, but this is not guaranteed.

 

Bank of America can review a short sale offer while the loan is in an active bankruptcy. To complete a short sale and issue the approval letter, the bankruptcy documents must be filed and approved by the court. Any final agreement will require bankruptcy court approval.

 

 



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