Short Sale Changes at Bank of America

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We all know that Friday the 13th is considered to be bad luck according to western superstition. Yet, ironically, on Friday, April 13, Bank of America made a few major changes that may make our short sale processing times more efficient.  The goal of these changes is to make short sale processing through Equator (the Internet-based platform) at Bank of America so efficient that short sale approval can be received in less than one month.

First off, Bank of America will require their new third party authorization for all short sales being processed through the Equator system. Additionally, the folks at Bank of America will be working to improve task flow for short sales in Equator by making some minor changes to the process.

According to the Bank of America website,

Starting April 14, you’ll see several changes:

Five documents (which you can obtain at will be required for short sales initiated with an offer:

  • Purchase Contract including Buyer’s Acknowledgment and Disclosure
  • HUD-1
  • IRS Form 4506-T
  • Bank of America Short Sale Addendum
  • Bank of America Third-Party Authorization Form

And, effective April 14, you will have only 5 days to submit a backup offer if your buyer has flown the coop.

The last change is a curious one, especially for short sale listing agents, since it often takes awhile to find a new buyer after you learn that the current buyer has changed his or her mind. Nevertheless, lucky or unlucky, be prepared for changes to Bank of America processing that became effective on Friday, April 13.

(photo credit)

About Author

Melissa Zavala is the Broker/Owner of Broadpoint Properties and Head Honcho of Short Sale Expeditor®. Before landing real estate, she had careers in education and publishing. Many folks say that Melissa is genetically pre-disposed to success with short sales. In fact, last year she and her staff obtained over 500 short sale approval letters! When she isn’t speaking with lien holders, Melissa enjoys practicing yoga, walking the dog, and vacationing at beach resorts.


  1. We live in Ok. Made an offer on a BOA short sale on March 17, 2012 & have been waiting ever since. (almost 5 months) This process has been the most annoying and drawn out process. Our realtor and selling agent have had to constantly call BOA to get answers and even then that’s only if someone answers the phone. I’ve never seen such inability to do a job and do it properly as I have seen over the past 5 months. BOA is not helping us in a timely manner.

  2. No kidding. It’s 9/21 now. I started my short sale 5/23 after getting an offer. After resending the same info over and over and waiting and waiting and resending more info over and over I received their offer. $1500 cash and a $10K promissory note. I countered with zero and zero note…then after 3 more weeks of waiting my buyer bailed. She was tired of waitinga nd interest rates went up. Got a new buyer and just got their offer..shocker..$1500 and $10K note. I’m so sick of them dragging this out. I’m about to conter again. I’ve been current since the day I bought my house but I just missed my first payment and feel terrible about it. I’ll treat my payment like they are my short sale. I’ll get to it when I can. Yes, I know they’re eating a chuck of my loan amount but it aint my fault the market dropped. It’s theirs along with other factors but I blame them.

    • My clients have had an offer in on a B of A short sale since the beginning of March. B of A countered back in June – my clients agreed to their counter – B of A has now turned it over to “loan resolution” and we still do not have an approval letter. Something is definitely wrong with B of A’s process. They are always escalating the file – mine must be on Mars by now! If the rest of us in the real world operated like B of A we would not have jobs!

  3. I have two identical properties side by side, same neighborhood…BofA mortgages…both hitting road blocks in the short sale process that are simply comical and serious. Both are not approving after very long delays, pormises of investor approvals yet delaying approvals for reasons unheard of before. My first ever delay due to BofA waiting for confirmation from the 2nd lien regarding acceptance of their payout…WITHOUT SENDING LETTER OF APPROVAL WITH TERMS AND CONDITIONS…. every single BofA i have done, they issue their letter of approval with the payout to the 2nd…then we give to the 2nd…ironically both properties have the same issue(the realtor is in our office and we share short sale tales)…so the only thing I can think of is BofA has ‘SUPER SECRET INVESTOR INFO’ to just intentionally delay these 2 identical homes in the same neighborhood on the same street right next to each other because they meet a criteria that either the MI company or the investor intent is to foreclose and take and sell(it is a nice neighborhood with increasing values)….But in the mean time BofA looks so unprofessional and ethically conflicted. Too bad they just don’t come right out and tell us yes or no it can be shorted. When ever the truth is withheld I beleive fraud follows!!!!!!!

  4. My husband and I short sold our home with CitiMortgage in 2008 and that was done in 70 days from the day it went up for sale to the day the new owners closed. Now we put a contract on a BoA short sale Oct 14th to buy and still waiting. Haven’t heard a thing other than BoA wants this out of their system by Dec 31st. Our closing date on the contract is Dec 15th and our agreement was 1,000$ to escrow when approval is received. We are going to pull out if our closing date comes and goes. We have to be out of our apartment Dec 31st. I am not happy with BoA, but I never was.

  5. After months of going back and forth with BoA we finally closed 5 months to the day I got my first offer on my house. I honestly think BoA intentially avoided my short sale because I was current and have a good job. I heard numerous times from them that “if you were 3 months behind,….” They kept telling me that they’d accept the short sale offer if I paid them a $10K promissory note. I kept countering them but finally agree’d to pay the $10K (they graciously offered to finance it for $100/month w/o interest for 120 months). After I agreed to pay the $10K it was sent to the ‘final’ approval dept and they decided $10K wasn’t enough and said they wanted a promissory note of $12,314. No idea how they came up with that number but they gave me an ultimatium to take it within 24 hrs or they would cancel my request and I’d have to start over. I just took it just so I could move on..and I’m sure thats what they wanted. I’m sure BoA isn’t the only sleezy bank around but they fought it for months. Now – gonna try and buy a new house..can’t wait to see what this does to my credit and if a bank would give us a loan. So far – credit has dropped 62 pts. Still in good standing but not sure if that’s bottomed out of if it will continue to drop. Hope everyone has s better experience than I did. Take care.

  6. Thanks for the heads up. Let’s see the changes. I hope it is for the best. BTW, if anyone needs to fill out a “IRS form 4506”,I found a blank form here: form link

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