BANK OF AMERICA SUBSTITUTE BUYER PROGRAM

July 26th, 2011 at 11:38 pm

On July 12, Bank of America introduced its “Substitute Buyer” program for short sales. According to this new policy, agents can submit a backup offer to B of A if the original buyer has walked away from a short sale transaction. According to B of A, this means you will no longer need to initiate a new short sale for the next buyer. Rather, you will continue to work with the same transaction in equator and with the same short sale specialist. Remember, this policy only applies if you have a backup offer ready when the original buyer cancels. If there is no backup ready, you will need to market the property again and start from the beginning when a new offer is received.

If, on the other hand, you have a backup offer ready when the first buyer walks, you should notify your short sale specialist about the cancellation. According to the Policy, the specialist will then respond, asking if you have a back up. If the answer is yes, the short sale can proceed without having to repeat the short sale initiation steps. Instead, you will be directed to complete the following tasks within 14 days: 1) Complete the “listing data” task; 2) Provide the marketing description; 3) Review the marketing plan; and 4) Upload the offer. When that is done, you can proceed with the short sale from that point forward without starting anew. Of course, this is good news for B of A transactions and will hopefully be copied by other lenders very shortly.

As always, please feel free to contact us with any questions you may have.

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