Real estate professionals with pending Bank of America short sales need to be aware of significant changes to the Bank of America short sale process. Released on April 2, the changes, “aimed at streamlining and expediting the process,” include new requirements for initiating a short sale and changes to Equator.
Beginning April 13, 2012, Bank of America will require the following five forms to be submitted to initiate a short sale:
- Bank of America Third-Party Authorization Form;
- IRS Form 4506-T Request for Transcript of Tax Return;
- 60-day Estimated HUD-1 (or HUD-1 with closing date if shorter than 60 days;
- Signed Purchase Contract including Buyers Acknowledgement and Disclosure;
- Bank of America Short Sale Purchase Contract Addendum.
If you currently have a short sale file with Bank of America, you will need to complete any outstanding tasks in Equator before April 13. Look for the tasks titled “Submit Short Sale Offer,” “Upload Offer Documents,” and/or “Upload Supporting Documents.”
If these tasks are not complete by April 13, you may be required to re-upload all documents to match the new system (that means five new documents, even if you were only missing one). Your file may also be declined, depending on your open tasks time compared to average timelines.
As always, it is imperative to stay current on the most recent changes affecting your client’s transaction. I will endeavor to provide all relevant information as it becomes available. If you have questions or concerns about the new process requirements, please contact me.