Using the Equator system
When processing short sales, it’s important to know about how each of the lending institutions handles loss mitigation and paperwork processing. Many folks already know that Equator is the online platform used by 5 major lenders (Bank of America, Wells Fargo, Nationstar, GMAC, and Service One). If you have done a few short sales in Equator with different lenders, you may see what while your same Equator account is used for all your short sales at all the lending institutions, each of the servicers uses the platforms in a different manner.
And, my hat goes off to Bank of America for really raising the bar when it comes to short sale processing online. And, believe me, after processing short sales with Bank of America in 2007, this change is much appreciated.
New Bank of America Short Sale Process
Effective April 13, 2012, Bank of America made a few major changes that may make our short sale processing times more efficient. The goal of these changes is to make short sale processing through Equator (the Internet-based platform) at Bank of America so efficient that short sale approval can be received in less than one month.
First off, Bank of America now requires their new third party authorization for all short sales being processed through the Equator system. Additionally, the folks at Bank of America will be working to improve task flow for short sales in Equator by making some minor changes to the process.
According to the Bank of America website,
Now you are required to upload five documents (which you can obtain at www.bankofamerica.com/realestateagent) for short sales initiated with an offer:
- Purchase Contract including Buyer’s Acknowledgment and Disclosure
- HUD-1
- IRS Form 4506-T
- Bank of America Short Sale Addendum
- Bank of America Third-Party Authorization Form
And, now, you will have only 5 days to submit a backup offer if your buyer has flown the coop.
The last change is a curious one, especially for short sale listing agents, since it often takes awhile to find a new buyer after you learn that the current buyer has changed his or her mind.
Short sale listings agents should be familiar with these changes in order to assure that they are providing their client with the most efficient short sale experience possible.
Roland Estrada
May 15, 2012 at 3:33 pm
It always seems like one step forward and two steps back these. The buyer replacement process reminds me of a Seinfeld story about a rental car – “You know who to take the reservation, you just don’t seem to able to HOLD the reservation.” If you lose a buyer, the banks need to able to HOLD the reservation. When you get a new buyer, all things being relatively equal, you should just be able take up where you left off. The red tape is horrendous. I’m dealing with a credit union right now and lost a buyer. However, the new buyer should have an approval and be ready to start closing in couple of weeks.
I get back to same old commentary. The Feds needs use an iron fist with the banks give them all a clear standardized process. If they don’t comply, the get heavily fined and quickly. And the fines continue until they do comply. I know this a rant but it frosts me because the process puts buyers and sellers through unneeded extra stress.
benjaminficker
May 15, 2012 at 6:15 pm
As with most “New” bank programs, I’ll believe it when I see it. B of A also, just launched a new program today similar to CHASE where they are offering up to $30k to the homeowners. Again though, when the results start happening, then I’ll believe it.
calsrfgrl11
May 16, 2012 at 1:48 am
@ask_wellsfargo Just entered into a short#sale process with @WellsFargo as a buyer. I have high hopes for a speedy response. So far…Offer accepted by seller 5.10.2012. Paperwork sent to WF 5.11.2012. Will update the timeline to track short sell process.