Bank of America is anticipating some changes in regard to their short sale processes and approvals.
Regarding B of A Fannie Mae backed loans:
- If a property is still in the negotiation stage of short sale approval, and the postponement of a trustee sale has already been approved once, Fannie Mae will not approve a second postponement.
- The maximum time frame that Fannie Mae will approve for postponement of a trustee sale on B of A loans is 42 days.
- Fannie Mae is attempting to adopt a policy with B of A disallowing the short sale process to begin fewer than 60 days prior to a scheduled trustee sale.
Regarding all B of A loans
B of A is claiming that it will be adopting a new policy for all of the purchase money loans that it holds, whereby the language in the short sale approval letter will state that B of A is waiving their right to pursue the deficiency. Whether or not this is true remains to be seen, but keep an eye out for the possibility of such a policy on the horizon.
We hope that this information will be helpful to you as you discuss the ever changing short sale process with clients and potential clients in the weeks to come!