Newsflash for Sellers, Buyers, and Agents. Bank of America has changed their regulations regarding Short Sales.
The old regulation allowed for back up offers to be submitted within 14 days after the original buyer either couldn’t perform, or walked away from the transaction. Meaning, if a seller has back up buyers for a short sale transaction, and the buyer in first position walks, the sellers agent could submit a back up offer within 14 days and Bank of America would expedite the re-approval process. Any offers submitted after 14 days, would in almost all cases, cause the file to be cancelled and force a re-initiation of the file thus taking Bank of America another 30 to 60 days to approve the short sale.
The new regulation reduces the back up offer days from 14 to 8. This means if an agent has back up offers, or worse yet doesn’t have back up offers, there is only 8 days from the time the buyer walks to upload a back up or new offer via Equator. After the 8 day period, Bank of America will cancel the short sale and start the approval process from the beginning.
All of this being said, there are strategies in place for agents to continue to market the property while the offer in first place has been submitted for short sale approval. Better yet, it is highly advised that sellers and their agents place the property in Back Up position in the MLS, and continue to collect back up offers till the buyer officially opens escrow and lifts all contingencies.
Word to the wise, keep marketing the property till all is said and done. It’s the agents Fiduciary duty to represent the seller and do everything possible to procure an offer or offers.
For more information feel free to contact me direct.
Real Estate News information provided by Troy Sage
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