Bank of America is reportedly rolling out a new short-sale process which is designed to reduce the time it takes to obtain approval from the bank by as much as half. Purportedly, the reduced time to obtain a decision is a result of improvements in their management software. For more information, click here.
A short sale is a sale of your home for less than what is owed on it. Typically, after an offer is received, the seller has to obtain approval from the bank to release its lien on the property. Whether or not the balance of the debt owing on the property has to be repaid is a matter of negotiation between the bank and the seller.
The new process is set to make its debut this Saturday (April 14, 2012). Whether it will work or not only time will tell. But, even if it does not deliver as much of an improvement as promised, any changes which reduce the bank’s processing time is long overdue.
For those of you with a Bank of America mortgage and considering a short sale of your home, keep in mind that this change does not mean the bank will view your short sale proposal more favorably – only that you will not have to wait as long to receive an answer. Yet, given that some short sale offers take months to get approval – this is a welcome improvement.
If you are contemplating a short sale, contact an attorney to review the terms of the agreement from the bank to make sure you are not liable for any deficiency.