Southwest Florida Title Insurance & Real Estate Blog -

Tips for dealing with Bank of America on Short Sales

Posted by Jillian Dohack On February 20

Bank of America (Photo Courtesy of Flickr User MoneyBlogNewz)

If you have a loan with Bank of America and need to short sale the property we can help! Most people have heard “nightmare stories” about dealing with Bank of America on Short Sales, but our goal is to make it as pleasant of an experience as possible for all parties.

It’s true that short sales can be a frustrating process, but we have helped orchestrate over a 1,000 short sales and know what to expect when working with all lenders, especially Bank of America.

It’s all in the details when filling out the Bank of America paperwork.  Paperwork that is not completed correctly or not sent back in a timely manner can cause delays or denials with Bank of America.

When working with Winged Foot Title, we will assist you in reviewing your paperwork to make sure it is completed correctly before submitting it to the lender.

Here are a few common document errors that can delay the process if not filled out correctly.

One of the most important forms in the short sale package is the Third Party Authorization Form. This will be one of the many forms we will send you that will need to be completed.

This form will give us the authorization to speak on your behalf during the short sale process. It is very important to fill it out to its entirety as the lender will reject any document that is not complete.

Another common form that can cause delays if not filled out appropriately is the 4506T Form.  This form is often used as a transcript summary of an individual’s tax information and by filling out this form you are authorizing the lender to get electronic transcripts from the IRS.

A delay will occur if the form is incorrectly filled out. It must match the seller’s tax return so the IRS will be able to provide the information to Bank of America. All sections of this form MUST be completed for review.

Bank of America also requests the Short Sale Purchase Contract Addendum form be fully executed by all parties of the transaction. It is often rejected because of missing names, buyer’s name not matching what is on the contract or HUD, or missing dates and addresses.

Lastly, the Purchase Contract, if not executed by all parties can cause delays in the short sale process. Common reasons for the purchase contract to be rejected are problems with the buyers’ and sellers’ names and addresses of each on page 10, the date was not included, the property address does not match Bank of America’s records, missing initials where applicable, not a legible contract, etc…

By our experience, using these tips and paying close attention to the documents we upload into Bank of America’s equator system, we can ensure our client’s short sale process moves as smoothly as possible.

If you have questions regarding a potential short sale with Bank of America in the state of Florida, call us and we can help. 239-985-4142.

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NOT LEGAL ADVICE: This information is not to be construed as legal advice. Legal advice must be tailored to the specific circumstances of each case. Every effort has been made to assure that this information is up-to-date as of the date of publication. It is not intended to be a full and exhaustive explanation of the law in any area. This information is not intended as legal advice and may not be used as legal advice. It should not be used to replace the advice of your own legal counsel.

Winged Foot Tite, LLC is not associated with the government, and our [short sale orchestration] service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.