In November of 2009 Bank of America launched a new platform called Equator. It is still only about 3-4 months old and they are working the bugs out as short sales are being processed almost like test dummies. Their goal is to move from a 71% approval rate to an 85% approval rate. I am not sure they are even at a 71% approval rate, but that is what their records indicate.
Bank of America has 59,000,000 million customers which would mean that 1 in 3 loans are Countrywide/Bank of America home loans. One might wonder why they have been so rough and tough on short sale process, but I guess we have to cut them a little slack based on volume. We short sale experts refer the BOA short sale as the devil, but I have a feeling this is about to change for the better. It was in May of 2009 that BOA short sales started to became the most difficult task in the history of short sales to date.
I have heard from several agents and title companies that declare they will not do BOA short sales whatsoever. We at Key Concepts never shrink from a challenge. This debacle came from the fall of the market combined with the amount of companies that came out of the woodwork to “LEARN”, do, process, or negotiate short sales. The amount of people learning as they go has contributed to the problem overtime. As I quote a Bank of America employee, “If only I could wave my magic want and make the real estate agents who don’t know how to work short sales go away. “
I am currently working 7 files on Equator. My experience with Equator has been favorable as far as timing goes, but they are asking for 105% of fair market value on almost every short sale in the pipeline. This creates a whole new problem. Now more companies are coming out of the woodwork to plug BPO business for agents who are sitting on the benches. These agents are going around and evaluating properties for shorts sales and these agents have absolutely no experience in doing BPO or they really do not have a working knowledge of how different properties need different evaluations. This is now creating the need for deed in lieu because a seller cannot short sale a property for over market value. It just does not make sense. Could this be a long sell?
It is evident that short sales are here to stay and we will press along in 2010 to protect homeowners with every tool in our short sale arsenal. We will have to do this with great optimism and the hopes that there will soon be regulation in the BPO industry as well. In case you are a victim of this over-evaluation (long sale) problem that is on the rise I have listed the BOA deed-in-lieu department link below which will save you about 10 phone calls.
Thank you! www.kjhomefinder.com
http://homeloanhelp.bankofamerica.com/en/deed-in-lieu.html
