New California Short Sale Law

07/22/2011 13:03:00

Under a new state law, any lender who agrees to a short sale,
which by definition will yield insufficient funds to cover the
outstanding loans on a property, must accept it as payment in
full for all loan balances. That is a good thing for upside-down
homeowners who need to sell, says the California Association of
Realtors. "The signing of this bill is a victory for California
homeowners who have been forced to short sell their home only to
find that the lender will pursue them after the short sale
closes, and demand an additional payment to subsidize the
difference," said association President Beth L. Peerce. "SB 458
brings closure and certainty to the short sale process and
ensures that once a lender has agreed to accept a short sale
payment on a property, all lien holders -- those in first
position and in junior positions -- will consider the outstanding
balance as paid in full and the homeowner will not be held
responsible for any additional payments on the property," she
added.

Bank of America Improves Short Sale Process

07/12/2011 18:39:00

We have some news for everyone who has expressed concerns over the difficulty in doing short sales with Bank of America. As we've said right along, BofA has been one of the most responsive institutions when it comes to making short sale offers.....

Bank of America now allows real estate agents to submit a backup offer on a transaction if the original buyer has walked away from the sale. This means you will no longer have to initiate a new short sale; instead, you can continue with the original transaction in Equator and still work with your same short sale specialist. This change will save you time by not having to repeat a number of process steps.

When a Backup Offer Is Ready

You should send a message to your short sale specialist via Equator when the original buyer is no longer interested in the property. Your short sale specialist will then respond to you within two business days and ask if you have a backup offer ready to submit. If you have another buyer prepared to make an offer, the short sale can proceed without having to repeat the short sale initiation steps. The short sale status in Equator will change to "Marketing," and you will be directed to complete the following tasks within 14 business days:

· Complete the "Listing Data" task.

· Provide the marketing description.

· Review the marketing plan.

· Upload the offer. (To do this in Equator, locate "My Properties," then "Offers" and select "Place New Offer.")

If the "Listing Data" task is not completed and the new offer is not uploaded within 14 business days, the file will be closed.

When No Backup Offer Is Ready

This new process applies only if there's an available backup offer when a buyer walks. If you do not have a backup offer ready to be submitted, the short sale will be declined. In that case, you should return to marketing the property and initiate a new short sale in Equator once you receive another offer.

GVG Blog

New California Short Sale Law

Bank of America Improves Short Sale Process