The first big change is their new Bank of America Cooperative Short Sale program, similar to the government's HAFA program (but hopefully much more effective!) B of A is now allowing sellers to apply for a pre-approved short sale prior to listing their home with a real estate agent and without a purchase contract. The seller must complete all the short sale documents including their hardship letter, and must submit all their current financials to the Bank. Once the bank reviews the seller's package, it is submitted to the investor holding the loan for final approval. If the seller is approved, they are given a guaranteed approved sales price AND they may also receive up to $2500 as a moving incentive, kind of a cash for keys.
Our first two attempts at this process have been resoundingly successful: both sellers were fully approved within three to four weeks of submitting their packages, and the prices were realistic. Both Las Vegas homes were placed on the market and both sold within a couple of weeks. One has already closed and the other is due to close next week.
This is a HUGE win for sellers, buyers, agents, lenders and title companies. As long as the sales contract follows the terms of the bank's approval, there is no more wondering for months on end if you even have a sale! Having guaranteed approvals on short sale will also reduce the number of homes for sale in Las Vegas in the near future. And it's smart on B of A's part, because a pre-approved short sale will garner a higher list price and improve their bottom line.
The second big change is that now Bank of America will allow back up offers to be submitted, so that if the first buyer walks or fails to qualify during the escrow, the second buyer's contract may be substituted without starting the approval process all over again. The listing agent can continue with the original transaction in Equator and still work with the same short sale specialist. This change will save several weeks of time by not having to repeat a number of the short sale process steps.
Since over half of Las Vegas short sales are being processed by Bank of America, this is GREAT news. Hopefully some of the other big banks will follow B of A's lead since the current government has already proven hopelessly inadequate for the task. Kudos to B of A for thinking outside of the box and keep it up.
Team Leader, The Tonnesen Team
Berkshire Hathaway HomeServices, Nevada
3185 St Rose Pkwy #100 Henderson, NV 89052
With over 30 years of experience helping families call Las Vegas "home!"
Related Blog Posts
One of the most challenging aspects of the home-buying process is getting access to financing. Securing a loan can be even more difficult when you’re planning to build a house from the ground up instead of getting a mortgage to purchase an existing property. If you’re building instead of buying the home of...
Five Las Vegas Valley communities cracked the top 50 nationally for new-home sales last year, new reports show. Leading the pack locally was Summerlin, where builders sold 1,052 homes, up 37 percent from 2016, according to separate reports this week from two firms, RCLCO and John Burns Real Esta...
Zillow Group report details affordability struggles as real estate demand overwhelms supply Key Takeaways Inventory absorption and home prices are rising so fast that homebuyers -- particularly millennials -- are going over budget and turning to friends and relatives for down-payment help. Buye...
Veterans, are you tired of finding the perfect home, only to make an offer and get beat out by a cash buyer? Don't give up hope! You can still move into the Las Vegas home of your dreams this summer courtesy of a new home builder that supports our troops. For the rest of the month of June, Richmond American Homes of L...
Credit: www.mycreditguy.com "When I see credit reports with lower scores, there is almost always one factor in common, high credit card utilization. Check out this quick video that will talk about how the credit scoring algorithm factors in your "balance to limit ratio" and how you can actually use this to your adva...