Bank of America Cooperative Short Sale Program
I just got a client into this program. On the outside it seems like a HAFA pre approved short sale. The letter sent to the clients is below (minus their personal information). This is new to me and was wondering if anyone else has experience with this program. Thank you!
To be honest, so far my involvement in this program was kind of limited. BofA called the clients and told them they can go through the program. They were not sure and called me. I in turn called the individual at BofA and he gave me the information. It sounds too good so I advised my clients that they should sign up right away. They did and we are now waiting for BofA to give us a price based on a new appraisal they just ordered. And the clients are looking forward to help with their moving expenses.
The processor at BofA said he gets a few hundred files a month an tries to put as many people into the program as possible. If I get more information from him I will post it here.
I have a client that is in this program as well. I was told by the negotiator that the seller's are 'hand picked' for this program by Bank of America directly. Realtors are not able to put their clients in it. My client was denied for HAFA after she was relocated with her job. HAFA requires that it be within 90 days but my client was relocated last winter before HAFA was in effect. She met all other criteria. BOA told me that this is a Pilot Program and not yet available to all sellers.
I have the negotiators direct phone number and can call her (yes, she answers) at anytime with any questions. Also, she can have the offer approved within 3 business days..no more waiting 30, 60, 90 or more.
Also, it must be uploaded in Equator when you get the offer...then you call your pre-assigned negotiator and she/he assigns themselves to the file. It is extremely efficient and fingers crossed that it is here to stay!
I'm not personally familiar with the Bank of America Cooperative Short Sale Program yet. Lets hope it is the start of something bigger. Matt Vernon has been vaguely hinting at big things to come at the last couple conferences I've heard him at. This sounds more like a way around HAFA to some degree.
BoA says the lucky participants are "hand picked", like it's a select group of homeowners. Y-y-y--e-e-e-a-a-h, R-r-r-i-i-i-g-h-t. Let me say it again: EVERYBODY WORKS THEIR PAY PLAN. Wonder why BoA does this instead of that? Find out how they're paid and you'll have the answer. What's interesting to note about this "cooperative program" is that BoA obviously thinks it's a great idea and that the investor (BoA) benefits, so why don't they fight harder to get regular HAFA short sales approved? That's right. Their pay plan.
I strongly suspected that this program was actually only for the loans that BOA owns. What is in their best interest as the investor is very different than what is in their best interest as servicer only. You will find that with every one of these entities...BOA, Chase, Wells, etc. Your experience with the way they handle things, how quick they are to move will be directly related to whether they are servicer only or actually own the loan. And that impacts the pay plan Jennie!
It is true that as the owner of the loan it is easier and quicker to make the decisions. The homeowners in this program are BOA owned loans only and do not have mortgage insurance. That is a relatively small number. The negotiator's on these files have only 20 that they are working on at one time instead of 200-300. Much quicker process when they are not overworked and under paid.
I have a short sale that was picked for this program. They said I could have an approval within a week. It has been 2 weeks and they have not even completed the BPO/Appraisal. Looks and smells like a regular short sale through Equator to me.
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