The Bank Of America Short Sale Process Explained

The Bank of America short sales has been criticized for its slow processing the past several months, but with streamlined projects and the introduction of President Obama’s short sale program, borrowers now have a much easier time completing a bank short sale with the North Carolina-based bank. If you’re considering a Bank of America short sale, here’s a quick guide to help you stay on track.

Check Out Other Options

Like the government’s bank short sale program, Bank of America requires that borrowers try for other workout options before asking for a short sale. You will need proof that you tried to get the loan modified or reduce interest rates, but failed to get the terms you need. Once they see that a Bank of America short sales is your best option, they can accept your application of even offer you the short sale itself.

Prepare Your Home For Listing

When the bank has approved your short sale, you can list it for sale with a bank short sale agent. Make sure to prepare it for viewing: scrub the floors and walls, get rid of clutter, and leave only basic furniture to make it look roomier. Your agent can put the home on the MLS, but you can also use online listings, local papers, and other channels—the more potential buyers see your home, the faster your Bank of America short sale can proceed.

Gather Your Requirements

Once you’ve listed your home as a bank short sale, your agent will send the listing contract to the bank along with a comparable market analysis (CMA) of home values and an HUD1 statement. These can be submitted through the Bank of America short sale system, Equador. The lender will then send back a list of bank short sale requirements. These include a deficiency letter stating how much of your balance you need forgiven, a hardship letter explaining your situation, and financial documents such as tax forms, pay stubs, bank statements, and a financial worksheet.

Find A Buyer

In a Bank of America short sale, it’s the bank who approves offers from potential buyers. Once you receive a good offer, you can submit it to the bank for approval. This is often the longest part of the bank short sale because all investors and lien holders will have to go through the offer. For a Bank of America short sale, this can take anywhere from two to six weeks. After getting approval, you can proceed to close your bank short sale, settle your mortgage, and turn your home over to the buyer.