Profile picture for sford008

New policy just before written approval for BoA short sale? anyone heard of this?

Hi Zillowers,  I am the to-be buyer of a short sale home that is owned by BoA.  The very short story is, I put an offer on this property not far from a year ago.  The bank has been throwing around "verbal approval" for several months now and just last week they informed the selling agent that if he could get a few documents to them by a certain day we should have written approval on Tuesday (yesterday).  Last night my agent told me that the selling agent spoke with the bank and the bank is saying that we have verbal approval (which means nothing to me) but the office he is working with now has to do another procedure, some kind of new policy.  My agent couldn't explain any more as they were not familiar with anything new.  My agent asked the selling agent for more details but they could not provide anything either. 
I believe the selling agent is doing the bare minimum and didn't even try to get details about this "new policy".  We've had many communication problems with the selling agent, which is a totally different issue in itself.  However it has left us in the dark again and it's making this sale that much more difficult. 
I'm a little familiar with the short sale process and I understand they take time, the bank (especially BoA) can be difficult to work with and not responsive at times, etc etc etc. 
My question is, has anyone heard of a new policy or experienced BoA "reviewing" the sale again after getting verbal approval and just before getting written approval?  I'm trying to figure out what to expect next, is this "new policy" just some smoke they're blowing because that's how they operate or could this "new policy" be something real? 
I would also ask to refrain from negative answers like: It's a short sale, you signed up for this; put up with it or walk away, and the like. 
I welcome and appreciate any sensible thoughts.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 05 - US
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (5)

Best Answer
I have handled very many short sale transactions with successful close and I really feel your frustration! Sorry you have to go through the ups and downs of this short sale, but it looks like you might be at the tail end. Try to keep your head up...you're almost there! I was notified by Bank of America on 1/30/14 of their Short Sale Agent Update, which stated:

As part of the Federal Housing Administration (FHA) document requirements agents are required to provide a signed "FHA  Preforeclosure Sale Addendum & Real Estate Licensee Certification Form". This document can be obtained on the Agent Resource Center under the Forms & Tips tab.

Note there is also a non-FHA version of the Short Sale Purchase Contract Addendum & Real Estate Licensee Certification Form. Please make sure the correct version of this form is being used.

Hope this information helps!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 05
Profile picture for sford008
Thanks for everyone's input, it does help to understand the process a little more.  I suppose I am surprised at the lack of structure the process seems to have.  From what I've read and talked to people it seems that you can have 10 short sales and have 10 different outcomes.  Anyways, my agent called this morning and told me she gotten written approval!  We should be hearing a closing date soon.  Thanks everyone for your helpful answers.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 07
First, a short sale is not owned by a bank or it would not be a short sale. The bank is a third party who must give approval, but they do not own it.

I have heard a sellers agent say they would accept an offer and the papers would be available in a day or two, never months. The sellers agent should not be blamed too much, getting details from a bank on a short sale is awful and you can't just call them and ask questions, they tell you what you need to know and that is usually NOT MUCH. I agree with the others in that it sounds like the nightmare is almost over for you.

Enjoy
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 05
I haven't heard of any "New Policy" but it wouldn't surprise me. BofA (and many other banks) make up new policies all the time.
It may be that they want a Review Appraisal. That is not unusual before before they put the acceptance in writing. In any case, there is not much you can do other than wait and see.
I wouldn't assume any fault on the part of the listing agent. The bank will tell him what and when they want.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 05
I have worked numerous short sales and I have never heard of a "verbal" approval without paperwork to follow within a day or 2.  With banks in general everything is in writing.  BOA is one of the worst right along side with WF, my fastest closing with either of these 2 has been about 8 months.  I just closed one that took 11 months.  If the sellers agent is not staying on top of this, your waisting your time.  
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 05
 
Related Questions
Can i use the mortgage loan i qualify for to work on a fixer upper
Profile picture for Jonathan Heggi
Latest answer by Jonathan Heggi
13 minutes ago | 2 answers
Is there a required Offer Form that must be used? & Earnest Money Deposit Questions
Profile picture for sunnyview
Latest answer by sunnyview
15 minutes ago | 1 answers
Why are there so many houses in foreclosure in the Mt Pocono area and nearby vicinities?
Profile picture for Tim  Moore
Latest answer by Tim Moore
1 hour 22 minutes ago | 1 answers
My wifes dad is going to deed a piece of property to my wife. How should we structure the loan?
Profile picture for Tim  Moore
Latest answer by Tim Moore
1 hour 41 minutes ago | 1 answers
What does "Option Pending" or "Pending Continuing to Show" mean?
Profile picture for Chris Boyles
Latest answer by Chris Boyles
2 hours ago | 8 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.