Bank of America’s Co-op Short Sale, Facts and Findings

We had the pleasure of closing another Bank of America Co-op Short Sale this week.  We previously wrote about this program and had high hopes that it would deliver as advertised. However, we soon became a little suspicious of this program when we found out that BofA wanted to move the seller straight into a Deed in Lieu if the property didn’t sell in 120 days.

Turns out BofA is doing that with their HAFA short sales as well.  You can read about that HERE.

 

“Pre-Approved Short Sales”

Because of the Approved Marketing Plan that goes along with this program, the listing agent was able to advertise the home as a “pre-approved” short sale.  This alleviates a lot of the concern that buyers face when pursuing a short sale purchase because it shows that the agent has already partnered with the lender on the purchase price, and that a significant amount of time will be saved in the approval process because the bank already has an idea of the homes value.

 

Deficiency Waiver Built-in

Like the HAFA program, there is no need to negotiate a waiver of the deficiency balance.  This is built in to the program.

It’s refreshing as a negotiator to know that this battle has already been won.

 

A Little Something on the Side…

This program falls just short of the $3000 offered by HAFA with $2500 being allowed for relocation expenses.  In this case, the seller had already moved out of state but he was able to still receive assistance.

Love it.

 

It’s Not All Glitz and Glamour

Because of the huge popularity of this program, we are seeing significant delays in getting the Marketing Price approved in a reasonable time.  We have a few properties with offers that have yet to be submitted because BofA is still in the process of reviewing the value of the home.

This is an unfortunate draw back that usually isn’t a problem accept when an offer is made on a property that is recently listed.

We continue to feel that Bank of America is making positive strides towards helping homeowners avoid foreclosure.  Aside from a Loan Modification, we feel that the Co-op short sale program is one of the best programs out there.

 

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