Bank of America Cooperative Short Sale
People are hearing about the Bank of America Cooperative short sale all over Contra Costa.
What is this type of short sale (Contra Costa cooperative short sale )? Why can it benefit you?
First of all, I could probably also call this post “a day in the life” as I’m currently working on a B of A cooperative short sale, the first since their newest guidelines and roadshow meant to inform us realtors how “easy” these short sales should be.
Here are some key points if you’re looking to conduct a short sale in Contra Costa with Bank of America’s cooperative short sale program.
- Can begin the short sale process BEFORE you have an offer. Yes, that’s right, get a pre-approved short sale price – shorten buyer wait times!
- First step is to have your agent call for an eligibility review of your file. If you have other liens, it may not work for you.
- Imagine marketing the home as a “pre-approved” short sale! You can! You’ll know what the bank wants, and you’ll have time to market it!
- Next step after determining eligibility for the cooperative short sale program is VALUATION.
- Bank of America will enlist an agent to conduct a BPO (or appraisal) of the property.
- My most recent (in process) coop short sale used an agent for a BPO (broker price opinion) and not a full fledged appraisal.
- Some borrowers will qualify as a “streamline candidate,” with no financial documents required (Really! My client has not had to provide any information.)
- Upon determining value, and reviewing, B of A will issue a program approval (short sale approval) letter
- Your 120 day marketing period will begin
- Offer received from potential buyer
- Decision in 10 business days! Yes, you read that right!
Once you have a signed and accepted purchase contract which meets the needs of the bank, the following additional things will happen:
- Auto-hold on any foreclosure action
- Up to 2,500 relocation assistance for owner occupant borrowers
- Final decision on your purchase contract, and clear to close within 10 days
- Quick close possible after final approval
- Per California rules on short sales, deficiencies shall be waived after closing
- Quicker decisions
- Marketing as pre-approved short sale
- Relocation allowance
- No deficiency
- Auto hold on foreclosure
- No need to be late on your payments (depends on qualification and hardship)
Caveat, if you read some of my older related posts or found this in google, you’ll undoubtedly come across some other posts I wrote about how bad the process was. The jury is still out, but it most assuredly has been B-A-D in the past. Here’s hoping this new era of cooperation is real. We’ll keep you posted as to the success of the current cooperative short sale we have in the system now. As of July 19th it’s been 3 weeks from signing listing paperwork to verbal approval. Written approval will be coming soon , then we can market it as a pre-approved short sale. Stay tuned for updates.