What is needed to begin the Short Sale Process?

Compile / collect homeowner information:

– Signed purchase contract

– Listing agreement

– Preliminary HUD-1

– Homeowner(s) signed and dated hardship letter detailing why they are unable to pay on their

loan(s)

– Homeowner(s) written permission authorizing Bank of America to speak with the real estate

agent about the their loan(s)

Additional homeowner information that may be required:

– Income verification

– Copy of most recent bank statement

– Copy of most recent tax return

NOTE: Prompt submission of the above listed documents is critical to timely processing of the short sale application

Additional Information

• A short sale MUST be an arm’s length transaction.

– The property may not be sold to anyone with close personal ties to the homeowner, including

business and personal relationships

• Some investors and mortgage insurance companies with an interest in the mortgage loans being serviced by Bank

of America require the homeowner to:

– sign a promissory note or

– make a cash contribution for some or all of the difference between the net proceeds from the sale and

the total amount due on the loan

• Junior Liens and HELOCs are considered in the short sale process.

– Bank of America typically requests the homeowner or his/her agent to negotiate with the junior lien

holder(s) for funds to release their lien(s).

– This may delay the process and the junior lien holder may deny the short sale.

Short Sale Processing Time

Documents

- Allow the appraiser access to the home as early as is convenient to the homeowner

Appraisal

- Complete and accurate information as early as possible for all required documents

- Updated contact information for the appraiser in order to arrange house inspections

Purchase Offer - Ensure offer is the best possible at fair market value and mitigates loss for lender relative to an REO sale

- Listing information and comparables to support price. Bank of America will use an Appraisal to establish value but will review other documentation

Change of buyers or agent - Change of buyers and/or agent at anytime in the process may cause the process to revert to an earlier step - notify us as soon as this occurs

Investor/Mortgage Insurance Approval - Approval from the Investor and/or Insurer only if we are not fullydelegated to approve the short sale

Lack of release on outside second lien - Bank of America must receive proof of release prior to issuing the

Fees & Costs - Fees that accrue during analysis or after approval may affect the

Factors that minimize processing time

Factors that add to processing time

approval letter

transaction

Short Sale Timeline• Bank of America targets for communicating a short sale decision (accept or decline) to the customer:

– A fully delegated short sale decision to be communicated within 45 days

– A non delegated short sale decision to be communicated within 90 days

– Additional time may be required for the closing to occur on a qualified offer and is dependent upon the

seller/homeowner and the buyer

Task Length Cumulative Days

Loan is referred by Home Rentention Division or Customer Service Start 0

File is opened as "Borrower Requested Assistance" 1 day 1 day

Offer received and appraisal ordered 7 days 8 days

Appraisal completed 10 days 21 days

All documents collected by phase 1 negotiator 12 days 33 days

Analysis and negotiations completed by phase 2 negotiator 3 days 36 days

Decision 5 days 41 days

Approvals (time is dependent on delegation of file) 2-30 days 43-90 days

Decision sent 2 days 45-90 days