Working out with Bank of America will turn almost any real estate agent trying to work out a short sale deal frustrated. The slow and painful process is just a big headache to them. But to make things clear, Bank of America is handling more short sales deals than any other company, due to their acquisition of Countrywide Home Loans well-known for offering bad loans during the housing boom.
One of the reasons that makes short sale transaction difficult with Bank of America is that they will not approve a short sale file unless there are two separate agents. In other words, they don't allow the same agent to represent both sides of the transaction.
They are doing so because of two major reasons - one, it will help them get the best purchase for each home that they approve, and second, it will help them stay out of potential legal issues. However, this situation is a royal pain to real estate agents who have BOA short sales listed, especially if they have a buyer who is interested in a property they have listed.
Another thing is that Bank of America requires that buyers get prequalified with BOA before they will accept a short sale offer - a total smart move indeed. But for people who are trying to buy short sales, and who are already prequalified with other banks, this is a total pain. Bank of America knows this, of course, however, they are still requiring this because of two major reason - they might actually get a few more loans out of the deal, and this will help them get business in a time of major losses.
Looking at it positively, Bank of America is indeed in a difficult situation because they are losing millions everyday. But even if their policy is irritating for real estate agents, they have to do everything they can so as reduce their losses and make a profit.
At the moment, Bank of America will continue to face the same or worse market conditions. As a matter of fact, they have paid the attorney's fees to foreclose, estimated at a low end of $40K in my state. It's not a good business move though the Bank of America is doing it for you. Wasting America's money!
They say that learning to do a short sale is very simple with Bank of America compared to other banks. But since they have been attacked due to their slow approval rate, short sale homes are processed painstakingly. In today's real estate world purchasing short sale homes can really turn homeowners, buyers, sellers, and real estate agents upside-down.
