Short Sale - Week 14

This is Part 14 of an on-going series documenting my most recent experience attempting to use Bank of America's Equator system to complete a short sale. You can find earlier posts in this series at:

Short Sale - Week 1

Short Sale - Week 2

Short Sale - Week 3

Short Sale - Week 4

Short Sale - Week 5

Short Sale - Week 6

Short Sale - Week 7

Short Sale - Week 8

Short Sale - Week 9

Short Sale - Week 10

Short Sale - Week 11

Short Sale - Week 12

Short Sale - Week 13


February 11, 2011

• I contact my escrow officer to confirm that all is set for closing next week. Per Equator, I have to submit a closing statement just prior to close. I ask escrow to prepare the final update so I can submit it on February 14.

February 14, 2011

• Escrow sends me the final closing statement and I submit it to Equator.
• I receive a call from Equator's closing officer who tells me there is a problem. The closing statement shows that the buyers are purchasing the home in the name of their trust rather than as husband and wife. B of A demands to see the portion of the trust that shows the beneficiaries. They want to make sure the buyers are not planning to will the property to the seller! I immediately call the buyer and have him fax me the appropriate pages, which I then send to Equator.

February 15, 2011

• I receive notification from Equator that the bank has cleared the purchase to close. I call escrow to make sure they have the same notice. The notice also instructs me to send Equator some closing documents once escrow has closed.

February 17, 2011

• Escrow confirms that the purchased has closed. I notify the buyer and seller.
• Escrow sends me the final closing papers which I then send to the bank via Equator.
• Equator closes the file!

Final Analysis:

After 120 days of marketing, plus another 97 days in escrow, this short sale has finally closed. This has been a long and stressful time for all participants; short sales are not for the faint of heart. But in the end, the seller was able to move on with her life, the buyer got a wonderful home at a great price, and I actually got paid for 217 days of work. In the world of short sales, this is a happy ending.

Too often, the deal does not close. Sometimes it's because the buyer gets frustrated with the long close and walks away from the deal. Other times, after months of negotiating, the lender and buyer can't agree on sales terms. And if there is more than one loan on the property, this process must be completed with each lenders individually.

I commend Bank of America's Equator system for really streamlining the process (yes, 97 days to close is FAST for a short sale). Because all information is handled on-line, the agent has written instructions from the bank as to what is required and when. Documents are uploaded to the bank via Equator, so there is no question whether or not the item was received. In other short sales, banks require that I fax documents. I do so, only to have them claim they did not receive them, so I have to re-fax. This can really delay the sale. Equator is a much more efficient solution.

Just as importantly, I was fortunate to have a buyer and seller who were eager have the sale close and were willing to provide the required information quickly. If you read the history of the sale, you'll note times when the bank wanted a specific piece of information. My clients worked with me to get it to the bank almost immediately. This really helped speed up the close.

And finally, if you're an agent reading this blog for some tips on how to work with short sales, here are some suggestions:

• Make sure both buyer and seller are 100% dedicated to going through with the purchase
• Respond to all requests from the bank quickly and politely. Don’t vent your frustration on them. They are also trying to close the deal and can be an advocate for you in getting the sale to close
• Stay organized. Make sure you know what is needed and when. Try to anticipate what the bank may require and get it now so you can submit it the moment it is requested
• Communicate with your client, even if it’s to tell them that nothing has changed. They may be on an emotional roller coaster and need to hear from you that things are still moving forward
• BE PATIENT!

I’m glad so many of you found this helpful. Thanks for the terrific emails and comments. It’s gratifying to know this has helped some of you already!