One of the biggest issues with getting a short sale closed has been timeline from the point where the buyer's offer is submitted to the lien holder (bank) to getting an approval. BofA is introducing a "cooperative short sale" where the homeowner is evaluated for a short sale, the property value and list price are determined by the bank and the homeowner is approved prior to offering the home for sale. Once the home is placed on the market and an offer recieved, BofA is saying it can provide a response within 10 days. The key will be the quality of the offer presented.
The benefits is that once a buyer has made an offer they no longer will wait 60-90 days to get an answer as the underlying approval process was completed prior to listing the property for sale. This will greatly increase the stigma that has been placed on short sales and make these listing more attractive to buyers.
There are several other programs that follow a similar model. The HAFA program designed by the US Treasury is available to borrowers who qualify and provides for an upfront approval. Also, if your mortgage is FHA insured the FHA Pre-Foreclosure Sale Program requires homeowners to get approved into the program and sets the list price prior to the marketing/listing of the property.
The key for homeowners in the Reno-Sparks market is to contact an experience agent who can make you aware of all your options when facing a possible foreclosure. When a short sale is the best solution for a homeowner, hiring an agent who is knowledgable about all the programs available to them is crucial.
For more information on the Bank of America Cooperative Short Sale please contact me.
