Bank of America revises short sale requirements

Posted: April 18, 2013 in California Real Estate News

Bank of America recently issued a new Short Sale Agent Update that revises certain short sale requirements for short sales involving non-government-sponsored enterprise loans in which the homeowner is eligible for HAFA.

Key enhancements include:

  • The Short Sale Agreement is being converted to a Short Sale Notice which will no longer require the borrower to sign and return the agreement.
  • The Request for Approval of Short Sale and Alternative Request for Approval of Short Sale are being eliminated. The Acknowledgement of Request for Short Sale is being introduced in palace of the Request for Approval of Short Sale, but will no longer require borrower’s signature and return.
  • The time frame for servicers to make a decision on a borrower’s request for HAFA has generally been shortened to 30 calendar days of receiving all documents and external approvals required.
  • Treasury will now require both the seller and purchaser in a HAFA short sale transaction to sign a new HAFA Affidavit document prior to closing. This certifies that the sale represents an arms-length transaction and that no money is being given or received that is not reflected on the HUD-1 Settlement Statement.

The prohibition against resale of a property for 90 calendar days following a HAFA short sale closing is being updated to prohibit any resale within 30 calendar days and prohibit a resale for more than 120 percent of the HAFA short sale price between 31 and 90 calendar days of the HAFA short sale closing.

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