Bank of America is trying to shorten decision time on Short Sales. B of A says it’s going to shorten the decision time on short sale offers from 45 days or more to under 20 days. Although this is a step in the right direction I would think a decision could be made in less than 10 days. The short sale market has been plagued with slow response times from banks on buyers offers now for the last 3 years. This puts a lot of buyers out of the short sale market because of slow response times and leaves mostly investors to pick up the short sale properties.
I don’t understand the banks thought process economically. Why wouldn’t you want to streamline the process down to where buyers could close in the 30 to 45 day time frame. Even with the response time of 20 days, closing will still be more than 60 days away. Why would you do that? Wouldn’t it make more sense to be able to close in a normal time frame for the local area? This makes the short sales more available to more buyers in the local market and reduces inventory faster which will lead to a faster recovery. Most buyers just can’t wait 90 days to close on a property. With technology today, multi-national banks should be able to close within an acceptable time frame and some banks do, so we all know it can be done.
Ok back to B of A. They are requiring a new third party authorization form for short sales starting today April 14th, 2012.
Here are the changes that must be presented with the offer:
- A purchase contract including information on broker services
- HUD-1 estimate
- IRS Form 4506-T
- Bank of America short-sale addendum
- Bank of America third-party authorization form
I would like your thoughts on the short sale process.