- All new Bank of America/Countrywide short sales must be submitted using their "Equator" system. This system should expedite the tracking of short sales.
- NEW short sales seem to be more efficiently handled by the lenders and servicers. There are still delays with the investor part of the process. The older files (more than 3 months in processing) are still taking longer to complete.
- If Wachovia owns the loan in their portfolio and it is not owned by an investor, they are "Fast Track"ing them and buyers can get answers within weeks. "Fast Track" is their internal short sale processing system. If it is part of this system, no hardship letter or financials are needed.
- Sellers do NOT need to be late to be considered for a short sale--but they must show hardship to the lenders.
- Each short sale is dependent upon the cooperation and completeness of information requested from sellers for the lenders, the efficiency of the loss mitigator assigned to the file, the policies and systems in place with the lender (servicer), the investor (AmTrust needs FDIC approvals which may take months), the contract offer price, the value (correct or not) of the BPO (Broker Price Opinion) obtained by the lender, the BPO's physical inspection vs. computer values, the seller's financial hardship, the amount of the delinquent association dues and other factors. All these elements must align. As a result, the process takes
time and research to clear or negotiate.
- "Release of Mortgage" on an approval letter does not mean release of deficiency or release from the "Note". Sellers need to talk with their attorney for clarification.
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