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Market Updates

Short Sales: Bank of America Reveals Some Cards

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bank of america santaBank of America just released an email that should be noteworthy for anyone playing ball in short sales right now. Anyone who's a registered agent with Bank of America would have received this email on or around Dec 4, 2012.

I've pasted a screenshot of the whole email for you below.

What It Is

This comes to us via the inbox of Mogul faculty Shaun McCloskey. Shaun and his team handle a lot of short sales (and do very well) in this market, and so naturally aim to keep their finger on the pulse of what’s happening.

Basically with this email they've formalized some of their already existing policies and procedures as to what is and is not acceptable for agent commissions on certain types of short sale transactions, and also clarified certain types of structures that will result in an automatic decline of a short sale.

What This Means to Investors

Short salers: This offers you some welcome clarity on some things that can trigger your short sale deal being flat out rejected -- things that were a good bit fuzzier before, like self-listing, for example.

  1. You need to know when your agent can/cannot get a commission, and how much they can/can’t get.
  2. You also need to be aware of certain specific types automatic deal killers (see "Acceptable and Unacceptable Short Sale Transactions" in the email)

An Expert Opinion

After receiving Shaun’s forwarded email on this, I immediately called him up to get his candid perspective. I actually caught him in his car sitting outside the Mac Store, but used Jedi Mind Tricks to convince him to briefly share his thoughts on what it says and means anyway :-)

Here’s our short conversation about it…

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The Email

12-12 BofA email

Bottom Line

This is nothing new really – Bank of America has likely always felt this way. But it IS new for Bank of America to show their cards like this by actually putting this info out there into the arena for Realtors and the world to see.

With this info, we can now know why certain things aren't being allowed and/or deals being rejected, and hopefully avoid it.

And a little more clarity’s always a good thing.

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