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#311980 - 11/02/09 05:33 AM Does Bank of America/Countrywide have 2 or 3 phases for short sales??
super realtor Offline
Major Contributor

Registered: 05/01/05
Posts: 8596
Loc: georgia
Hey everyone.

I haven't completed short sales in awhile and I am helping my agent out.

From what I have read some say Countrywide has 3 phases and others 2 for short sales. Right now we are at phase 2 with verbal acceptance. Buyer already ordered inspections and appraisal which my agent told them to wait for bank approval in writing and closing date.

So I am calling phase 2 negotiator tomorrow but the issue is if this buyer wants to get the home buyer tax credit it might not close until after that date. Buyer will be pissed they did not get the credit but we don't represent their side. They would be getting a smoking deal on this property anyways. Foreclosure is set for December 1st.

Any experience with this bank on shorts would be appreciated. This is what I found off the internet.

Countrywide, now Bank of America, has three (3) phases--not two (2)-- in their short sale process. Each of the three phases takes between 30-45 days to complete. At present, Bank of America has over 500,000 short sales to process and each coordinator is assigned about 400 files each. Here are the three stages, as it was explained to me by a short sale representative:

Phase 1 - Requires scanning the file contents, determining if the file is complete
Phase 2 - Review price of home (BPO), preliminary review of file contents to determine if a short sale is warranted
Phase 3 - Final Review and Negotiations. This is where the lender appproves the Short Sale or provides a Counter Offer to Buyer. This is also when the Lender determines what conditions will apply to the sale.

Again, in the "best possible case", a short sale takes 90 days from offer to acceptance by the lender, which means 120 days from offer to close of escrow. However, in areas where there are proliferation of short sales, the time between Phases can be closer to 45 days just to get the file to the Phase 1 Negotiator and then 45 days at each phase--meaning that the process from offer to approval can be 180 days or about 6 months. That's extreme, of course, but it can happen.

Unfortunately, with the influx of Countrywide short sales into the B of A system, all representatives are understandably overwhelmed with jobs, and there is nothing that we as buyers, sellers or Realtors can do to speed up this process.

I hope this helps put the process into perspective for you. Good luck and hang in there!!

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#312010 - 11/02/09 04:02 PM Re: Does Bank of America/Countrywide have 2 or 3 phases for short sales?? [Re: super realtor]
socalreman Offline
Veteran Member

Registered: 05/13/08
Posts: 757
Loc: Orange County, CA
I was on the Buyer's side of a CW/BOFA short sale over the summer here in Southern California. It took us approximately 5 months from day we made an offer to the day it closed. If you are at phase two of your list, you are very close, they will tell you it could take up to 30 days for written approval, but in my case, it took them 21 days to get us something in writing. Then when you get to phase 3, they give you about 21 days to close Escrow after the issuance of written approval. Good luck, and keep your fingers crossed the home buyer tax credit gets extended, I believe it gets voted on today in the Senate then the house gets it soon after, it may be on the President's desk by weeks end. Good luck.
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#312125 - 11/02/09 11:50 PM Re: Does Bank of America/Countrywide have 2 or 3 phases for short sales?? [Re: socalreman]
super realtor Offline
Major Contributor

Registered: 05/01/05
Posts: 8596
Loc: georgia
Thanks for the help! smile

The water heater issue we were having is working now.

Talked to short sale supervisor and they said everything looks good and it should go to stage 3 anytime now. We have been in stage 2 since October 19th and last activity on the file was October 29th.

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#312153 - 11/03/09 02:34 AM Re: Does Bank of America/Countrywide have 2 or 3 phases for short sales?? [Re: super realtor]
StLbpo's Offline
Member

Registered: 04/13/05
Posts: 381
Loc: missouri
Three, 3rd is the final stage, but time frame is a guess

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#312158 - 11/03/09 03:14 AM Re: Does Bank of America/Countrywide have 2 or 3 phases for short sales?? [Re: StLbpo's]
HogCallBroker Offline
Member

Registered: 02/27/09
Posts: 157
Loc: Arkansas
Good info thanks. Pretty sure I wouldn't have put a buyer in a short sale if they were trying to get the credit. Unless it was April or something when it went u/c.
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REALTORŪ since 2003, Broker since 2006, GRI
REO/BPO since 2007

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#312180 - 11/03/09 07:36 AM Re: Does Bank of America/Countrywide have 2 or 3 phases for short sales?? [Re: HogCallBroker]
VirtualAdmin Offline
Member

Registered: 12/18/05
Posts: 128
Loc: IL
I finally got to Phase 3 after about 5 months. The negotiator sent a counter for the buyer which the buyer could not accept. There were also conditions for the seller that the seller could not accept. So after all this time, it looks like the seller is headed for foreclosure. I'm pretty sure I could have gotten another buyer pretty quick but the negotiator wanted all requested paperwork within 24 hrs which was almost impossible. However, the worst part was the conditions for the seller that put a kabash on the whole deal. What a waste of time! The file has now been closed. They didn't waste any time doing that.


Edited by curiouscat (11/03/09 07:37 AM)
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www.virtualadmincenter.com

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#312202 - 11/03/09 03:57 PM Re: Does Bank of America/Countrywide have 2 or 3 phases for short sales?? [Re: VirtualAdmin]
smiling jack Offline
Member

Registered: 02/07/08
Posts: 172
Loc: georgia
They have a very good automated response program that actually tells you what date they won't reply by. How do you think they got in this pickle anyway.
They are smart guys and when they figure out how much it is costing them to dither around; they will modify it...look out taxpayer here comes the TARP request.

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