Bank of America Short Sale Update – Let the Good Times Roll
From the OMG files, Bank of America (BAC) recently sent a new advisory to agents who handle short sales. And, as if short sales weren’t already enough fun (and by “fun” I mean “Oh-please-make-it-stop-I-should-have-been-a-ballerina”), BAC is now cautioning agents and sellers involved in their short sale process not to get too excited about the approval letter or scheduled closing date. Here is a partial screen shot of the love letter I received:
Says BAC, “Bank of America services mortgage loans for hundreds of investors. As a part of normal servicing, investors may decide to release or transfer servicing from Bank of America to another company… Real estate professionals should advise homeowners that, similar to foreclosure, a servicing transfer is a risk that may occur at any time during the short sale process.”
So, what? Responsibility for the servicing of your loan gets transferred. It happens all the time. Except, if you are in the throes of short sale fun, an ill-timed servicing transfer could derail your otherwise imminent short sale – you know, “similar to foreclosure.” Whatever.
According to BAC, “If an offer has already been accepted on your short sale, a closing has been set and an approval letter issued, the new servicer will determine if the short sale will continue.” (Emphasis added.)
In other words, you’ve got nothing. Rinse and repeat.
Oh, and we are also to be advised that “it takes 30 days or more for the new servicer to access the loan.”