Erin Attardi's Blog

Time for my fifth installment of Erin's Sacramento Short Sale Experiment! I am sure ya'll are just on the edge of your seats to find out just what has transpired in the world of short sales in our Sacramento metro area since the last time? I have deliberately allowed more time to pass between Part IV and Part V, so that we can see if a trend has truly emerged and also see what the YTD totals for 2009 are. For those of you not following along at home, or perhaps if you are reading this for the first time, my short sale experiment is tracking a few different Sacramento zip codes to see what how the short sale activity increases or decreases over time as compared with traditional resale listings (where there is a seller with equity in a "normal transaction") and to bank-owned resale transactions. My hypothesis at the start of this experiment: the number of short sales will grow over time, as will their dominance in our greater Sacramento marketplace (overall percentage of listings). I have continued to list more short sale properties. Let's see how this new data compares to the "control data" for the experiment and also to last month...

95624 is the section of Elk Grove closest to Hwy 99. As of right this second according to MLS, there are a total of 325 active listings there. 244/325 listings are short sales. The median price in that zip code in December 2009 was $245,000 according to Trendgraphix (an increase over last installment). The result vs. the control data? Control data was 68.6% of all active listings in 95624 were short sales, vs. 68.3% last installment, vs. 75.1% this month. BIG INCREASE over the control data, and a more significant increase over last installment. Number of 2009 closed short sales - 245.

95610 is a section of Citrus Heights. As of right this second according to MLS, there are a total of 170 active listings there. 116/170 listings are short sales. The median price in that zip code in December 2009 was $196,000 according to Trendgraphix (a significant decrease over last installment). The result vs. the control data? Control data was 60.3% of all active listings in 95610 were short sales, vs. 67.3% last installment, vs. 68.2% this month. BIG INCREASE over the control data, and a slight increase over last installment. Number of 2009 closed short sales - 85.

95826 is a section of Rosemont and College Greens. As of right this second according to MLS, there are a total of 121 active listings there. 72/121 listings are short sales. The median price in that zip code in October 2009 was also $181,000 according to Trendgraphix (a decrease from last installment). The result vs. the control data? Control data was 62.2% of all active listings in 95826 were short sales, vs. 74.1% last installment, vs. 59.5% this month = BIG DECREASE. Number of 2009 closed short sales - 65.

95864 is a section of Sierra Oaks, Arden Park, and Arden Manor. As of right this second according to MLS, there are a total of 140 active listings there. 41/140 listings are short sales. The median price in that zip code in December 2009 was $451,000 according to Trendgraphix (a big increase over last installment). The result vs. the control data? Control data was 17.0% of all active listings in 95864 were short sales, vs. 25.8% last installment, vs. 29.3% this month. BIG INCREASE. Number of 2009 closed short sales - 18.

95818 is a section of Midtown, Land Park, and Curtis Park. As of right this second according to MLS, there are a total of 54 active listings there. 14/54 listings are short sales. The median price in that zip code in December 2009 was $424,000 according to Trendgraphix (big increase over last installment). The result vs. the control data? Control data was 16.0% of all active listings in 95818 were short sales, vs. 25.0% last installment, vs. 25.9% this month. BIG INCREASE over the control data, and a slight increase over the last installment. Number of 2009 closed short sales - 15.

95819 is a section of East Sacramento. As of right this second according to MLS, there are a total of 57 active listings there. 12/57 listings are short sales. The median price in that zip code in December 2009 was $310,000 according to Trendgraphix (a decrease over last installment). The result vs. the control data? Control data was 19.7% of all active listings in 95819 were short sales, vs. 22.6% last month, vs. 21.1 this month. Still a BIG INCREASE over the control data, but a slight decrease over last installment. Number of 2009 closed short sales - 11.

So in summary - of the six Sacramento area zip codes I am tracking for my experiment, 4 of them experienced an increase in the number of active short sale listings from last installment, while 5 experienced an increase over the control data...the majority of the zip codes posted pretty large proportional increases, and the one decreasing zip code I am tracking posted a huge proportional decrease. My phone definitely keeps ringing and I continue to receive emails - I am fielding lots of inquiries from homeowners looking for more information and insight from my short sale experience...buyers too are really curious about the short sale process since they are encountering so many short sale listings in our marketplace. Also (you will be aware of this if you follow me on Twitter or Facebook), I closed many of my own short sale listings since the last installment of Erin's Sacramento Short Sale Experiment...in fact I closed an Arden short sale last week, and I have another Sacramento short sale closing next week. Until next time!

Erin's Sacramento Short Sale Experiment, Part I
Erin's Sacramento Short Sale Experiment, Part II
Erin's Sacramento Short Sale Experiment, Part III
Erin's Sacramento Short Sale Experiment, Part IV

Hmm. Is it just me, or do the median price statistics in Sacramento County sure seem to look pretty flat for the last year? If you look at the median price in December 2008 vs. that of December 2009, you will actually see an INCREASE of about 5.1%! Perhaps now we have enough data to think this little trough we saw from last January to April was not a fluke - and stability is here to stay? Time will tell. I can tell you that most of the transactions I have been representing for both buyers and sellers, (in all price ranges, short sales, foreclosures, and "regular transactions with a traditional sellers" - yes those DO exist!) are mostly met with multiple offers often resulting in pushing the price over the listing price. If you would like me to email you the Facts and Trends graphs for specific zip codes in Sacramento County, just shoot me an email and I am happy to provide them.

Adorable Sacramento 3 bed, 2 bath, 1,159sf home is ready for a new owner! You will love the updated kitchen, open floor plan, spacious master bedroom, and the convenient location within minutes of shopping, entertainment and freeway. LOW $60/month HOA dues cover the front yard and common area maintenance. Convenient location close to I-80, shopping, schools and more. Offered at $119,000 subject to lender approval of short sale. For more photos and information, visit http://www.7117heathertreedrive.com/.

The US Department of Housing and Urban Development (HUD) announced today that it is planning to make some changes to its FHA loan program. Hmm...the announced changes include:

Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending. Per HUD's press release, "the first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge." This change will supposedly take place this coming Spring 2010. Eventually, they plan to shift this from an up-front fee increase to an annual premium increase. What does this really mean, in plain english? The FHA mortgage insurance premium is paid by the buyer up front, however the cost is financed into the loan. For example, if your purchase is for $300,000, your "base" loan amount after your 3.5% downpayment is approximately $289,500...the MIP is added to the base mortgage loan amount. Currently, MIP is approximately 1.75%. This would add approximately $5,066.25 to your financed loan amount, making your total financed purchase approximately $294,566.25. With this change, with the MIP being raised to 2.25%, this would add an additional $1,447.50, for a total financed amount of $296,013.75...a difference in monthly payment of about $10 depending on the interest rate?

Update the combination of FICO scores and down payments for new borrowers. Per HUD's press release, "new borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%." This change will supposedly take place this Summer 2010. What does this really mean, in plain english? Candidly, I really do not anticipating this having a huge impact on FHA lending as it exists. Until now, there has been no minimum FICO score requirement imposed by HUD, however, lenders who fund FHA loans have imposed their own "overlay" requirements. I do not know of ANY lender who currently will fund an FHA loan for a borrower with a credit score below 580 (and really, that number is probably 620). I just hope lenders do not create new "overlay" requirements that raise downpayments for borrowers with credit scores under, say, 640 or something...

Reduce allowable seller concessions from 6% to 3%. Per HUD's press release, "the current level [at 6%] exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions." This change will supposedly take place this Summer 2010. What does this really mean, in plain english? Candidly, this does suck (for lack of a better way of saying it). While I think it is pretty rare to see a buyer ask for a 6% seller concession (aka, a credit for buyer's closing costs), it is not uncommon to see a buyer ask for 3.5%, or 4% to cover their closing costs. Also, often times a credit will be negotiated after the buyer and seller are in contract to compensate for a repair or something of that nature...now ALL credits will be capped at 3%. Heck...many conventional loans allow more than 3%. It means that buyers will have to come into the transaction with more money...that concept is not a terrible thing, but all of the (probably unintended) consequences of limiting the seller concessions could be really crappy.

So what is the net effect of all of this? If you are an FHA buyer looking for a home, and these changes above will adversely affect your ability to purchase a home, you may want to get in gear and complete your purchase...or, start saving more money for your purchase. If you are a seller, and potential buyers for your home may be using an FHA loan (which in Sacramento, will be MOST sellers), get ready for these changes...you will be capped at a 3% seller concession, so throwing money at a transaction in lieu of repairs may not fly in some cases.

Are you a first time home buyer seeking to purchase a home within the City of Elk Grove limits? Well you are in luck! The City of Elk Grove has received grant money from the US Department of Housing & Urban Development (HUD) "Neighborhood Stabilization Program." The program affords eligible first time home buyers up to $60k in the form of low interest, payment-deferred loan toward their downpayment and closing costs!!

Of course there are several buyer eligibility requirements...among the requirements are that the home must be a bank-owned/foreclosed single family home, within the city limits, and the buyer's income must be within the 2009 "moderate income limits."

Think you may qualify? Get more info by downloading the City of Elk Grove's brochure or check out their program fact sheet.

If you follow me on Twitter, you will already know that I "re-tweeted" an earlier post from the California Association of Realtors regarding a temporary suspension of a HUD lending rule that has prevented many buyers from purchasing "flipped" homes.

What is a "flipped" home? As you can probably guess, this is when an investor purchases a home with the intent to resell it for a profit.

The rule has been that a buyer using an FHA loan can not purchase a flipped home until the title to the home has been held by the current seller for 90 days or more. A couple years ago, HUD excluded bank owned properties from this rule, as there is a change of title from the owner to the bank. Often times however, investors who are flipping property do some improvements to the property and list it within days or weeks of taking title to the property....it is not uncommon when I am looking for properties to show a buyer to see an agent-only remark in MLS stating something like, "Sorry, no FHA loans until 2/15/2010 due to anti-flipping rule." In fact, in 2008 I wrote a blog post about the anti-flipping rule when one of my buyer clients expressed interest in purchasing a flipped home.

Sooo....now, according to HUD, they are going to make an exception to their anti-flipping rule for one year. This new exception to the rule is effective begining February 1, 2010.

I will be VERY curious to see how lenders who fund FHA loans will react to this. Just because HUD will allow flipping, that does not necessarily mean that a lender will permit it. In fact, even with conventional loans, many lenders will not lend on a flipped property. Time will tell!

Buyers - be sure to ask your loan officer about how this rule may affect your ability to purchase a flipped property with an FHA loan. Do not assume that since this new exception to the standing rule has been made that you will be able to actually find a lending institution that will do it.

Equinox at Lincoln Crossing! This beautifully maintained 3 bed, 2.5 bath courtyard home is better than new, and includes many nice upgrades. You will love the open floorplan, gourmet kitchen, tile flooring, custom paint, window coverings, pre-wiring for surround sound, 2-car garage and beautiful landscaping with stamped concrete patio! Offered at $165,000 subject to lender approval of short sale. For more photos and detail, visit http://923equinoxloop.com/.

Welcome to the Astoria community in Natomas! Come and fall in love with this amazing 2 bedroom, 2.5 bath end unit condo with attached 2-car garage, dual master suites, gourmet kitchen with granite counters, maple cabinets and stainless appliances, and separate living and family rooms. Enjoy the state of the art fitness center, pool and clubhouse just a stone's throw from the front door. Don't wait! Offered aty $169,000 subject to lender approval of short sale. For more photos and additional details, visit http://astorianatomascondo.com/.

I have received several inquiries over the last few months from buyers seeking to purchase condos in Sacramento. Those buyers are enticed by the idea of home ownership for an affordable price, low maintenance living, community amenities (clubhouse, swiming pools, tennis courts, fitness centers), and more. There are many benefits to living condos...heck, the first home I bought at age 19 was a condo.

Many of the buyers who have been contacting me are seeking to use FHA or VA loan programs in order to make their purchase. UGH. Nothing frustrates me more than having to tell excited would-be condo buyers that the community they absolutely love is not approved for FHA or VA loan programs. You may think - why can't all condos be purchased with these loan programs? Well...I wish I knew the exact answer!! No - in all seriousness, in order to qualify for FHA and VA loan programs, condos must meet certain criteria, and communities / entire associations must be approved by The US Department of Housing & Urban Development for FHA, or The US Department of Veterans Affairs for VA, in advance. At one point in time, there were "spot approval" processes where an individual unit could be approved on a case-by-case basis...but options to do that are limited or just don't exist anymore.

So how do you find out if a condo is VA or FHA approved? There are two online tools that buyers (or sellers, for that matter) can use to look up approved condo communities. The tool to look-up approved condo communities for FHA loans is here, and the tool to look-up approved condo communities for VA loans is here. I use these tools all the time, and find them to be invaluable!

Amazing Natomas 3 bed, 2.5 bath 1,519sf home! You will love the upgrades such as the cherry kitchen cabinets and granite slab counters, fabulous master suite with a balcony and luxurious bathroom, and a spacious backyard! Offered at $169,000, subject to lender approval of short sale. For more photos and detail, visit http://17CoyoteForkPlace.com.

Today I attended the Officers & Directors Installation Luncheon at the Sacramento Association of Realtors. Our new President for 2010, Barbara Harsch (also a Lyon Realtor) was sworn in, along with the President-Elect, the Secretary-Treasurer, and the members of the Board of Directors.

Along with the installation, there was an awards ceremony to recognize outstanding association members for their contributions in 2009. I was honored to be one of about a dozen association members to be recognized! I received an award for "Oustanding Service in Education." As I mentioned in my final blog post of 2009, last year I was an instructor for multiple classes at SAR, as well as a featured speaker at two conferences for the California Association of Realtors. In 2010, I am already teaching a section for the "Educational Roundtables" (hosted by the SAR Masters Club) taking place later this month on January 29.

Well this was a nice way to start 2010!

If you follow me on Facebook or Twitter, you will already know that I am experiencing a little frustration regarding a short sale I am negotiating for another agent. Because I am so well-versed in short sales and they require a special expertise, there are several other Lyon Real Estate agents who engage me to negotiate their short sale listings...our arrangement usually is that I am paid a percentage of the listing agent's commission from the transaction, and just deal with the lender loss mitigation reps. The other agent is responsible for all other pieces of the transaction like dealing directly with the seller, buyer's agent, etc.

Well for the last couple months or so, I had been negotiating a short sale with this type of arrangement for another Lyon agent. This agent listed his son's property. Fine...seemed like no big deal - just any old short sale.

The loss mitigation rep from the lender contacted me yesterday. "Erin, I have some good news, and I have some bad news. The good news is that the short sale has been approved! The bad news is because the listing agent and the seller are related, we are reducing the listing agent's commission to $0." WHAT!?

The loss mitigation rep explained that it is their policy that ALL short sale transactions must be at "Arm's Length."

Well no kidding! I have dealt with Arm's Length transactions before and have blogged about them...in fact most lenders will require buyer and seller to sign an affidavit swearing that they are not related, and not business associates. But the agents are not principles to the transaction...

I got my managing broker involved...basically Lyon Real Estate must still facilitate the transaction, but receive zero compensation, but accept all of the liability for the legal ramifications of the transaction. My managing broker suggested we switch listing agents...so we tried to convince the short sale lender to accept a substitute listing agreement, naming me as the sole listing agent rather than the seller's father. The short sale lender said no and they would cancel the approval if another listing agreement was presented.

So.....corporate legal counsel is now getting involved, and without going into more detail - the transaction is moving forward with no compensation to the listing side. Coincidentally, the buyer's agent commission was actually not reduced at all. The listing agent and his son (the seller) are just happy this short sale transaction was approved, and have assured me that my efforts will be compensated in some way...frankly, they are fortunate that Lyon Real Estate is still willing to facilitate the transaction.

So.....just be aware that this may happen if you list your short sale with a family member who is a Realtor. It looks like this transaction will have a happy ending, but I can see where this situation may cause problems for others.

Great Rosemont 3 bed, 2 bath, 1,260sf home! You will love the open layout with separate living and family rooms, cozy fireplace, spacious bedrooms, nice backyard with fruit trees, 2-car garage, central heating & air, and 2-year old roof! Offered at $175,000 - NOT A SHORT SALE / Foreclosure! Seller will provide pest clearance. Don't wait! FHA and VA loans are welcome! For more photos and additional detail, please visit http://3324huntsmandrive.com/.

Early this year, I blogged about a program from the California Association of Realtors called the Mortgage Protection Program. C.A.R. announced today that the program is going to be extended through 2010!

Through the C.A.R. Housing Affordability Fund, the Mortgage Protection Program (CARHAFMPP) affords first-time home buyers who lose their jobs due to layoffs up to $1,500 per month for up to six months to help make their mortgage payments. A qualified co-buyer also can participate in the program, for a reduced monthly benefit of $750 per month for up to six months in the event of a job loss.

I have enrolled some of my buyer clients in this program...in fact one was interviewed and quoted in the press release from C.A.R.

It is a great program that gives buyers peace of mind. To qualify for the Mortgage Protection Program, applicants must:.

• Be a first-time home buyer - someone who has not owned a home in the last three years.
  
• Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2010.
  
• Use a California REALTOR® in the transaction.
  
• Purchase the property in California.
  
• Be a W-2 employee (cannot be self-employed)

I received an alarming email yesterday from my favorite Escrow officer...she forwarded me a memo from their legal department:

"One of our escrow officers received a correspondence yesterday on a FNMA (aka, Fannie Mae) short sale escrow that indicated that FNMA has implemented a new policy effective today, 12-15-2009 that they will no longer postpone trustee sale dates. FNMA is requesting that the short sales are closed before the sale date. If they can not close the short sale before the Trustee Sale date, the property will go to Trustee sale and be foreclosed."

What exactly is a Trustee Sale, you ask? A Trustee Sale is basically a Foreclosure Sale conducted under the stipulations of a Deed of Trust. The Deed of Trust is a notarized document a borrower signs that secures the borrower's loan to the property, and permits the sale of the property upon default by the borrower. Upon default, the Trustee (could be the lender, or the lender's authorized agent) is authorized to foreclose the mortgage and put the property up for a Trustee's Sale. The proceeds of the sale are distributed by the Trustee according to the priorities listed in the deed of trust...usually first distributed to the 1st lender, and then any remaining proceeds (if any) are distributed to the 2nd lender, or any junior liens. After the sale is complete, the trustee transfers ownership to the winning bidder. The original owner/borrower does not have the right to redeem the property after the sale.

UGH. I immediately thought about my two approved short sales that are scheduled to close in January...I went through my files and whew - neither one has a Trustee Sale date scheduled. I do however, have other short sales in progress where there is an existing Trustee Sale date scheduled, or there could be a Trustee Sale scheduled at any time. On several past occasions, I have been able to convince lenders to postpone or reschedule existing Trustee Sale dates so that the short sale can be analyzed and approved. If this is true, then on Fannie Mae loans, there may no longer be an option to get these sale dates postponed.

Of all my short sales in progress right now, I think about 20% are Fannie Mae loans and may be affected by this new policy...not sure if that precentage is representative of all existing loans out there.

Sellers - DO NOT wait to the last minute to get your short sale started. You may not know if you have a Fannie Mae loan, and your lender/loan servicer probably would not be able to tell you if you were to call and ask.  You can use this online tool to see if you have a Fannie Mae Loan.

Buyers - be sure to have your agent ASK the listing agent to find out if he/she knows if the loans being negotiated for the short sale are Fannie Mae, AND if there is a Trustee Sale date scheduled, or if there is the possibility of a Trustee Sale being scheduled in the future (will depend on if/when a Notice of Default has been filed).

While I was doing some short sale negotiation this week, and listening to the zesty cha-cha "on-hold" music for one particular lender I seem to be working with a lot, I decided to take a stroll down memory lane and read some of my older blog posts...

I just wanted to point out that if you are doing research regarding buying or selling your Sacramento home, please make sure you are reading up on current information. Our market changes so frequently, that information and advice that was relevant just a short time ago is no longer applicable!

There have been many pieces of legislation that have affected the marketplace on the national, state, and local fronts. Think about the impact of doing away with seller funded downpayment assistance, new licensing requirements for loan originators, short sale "phantom" income tax ramifications at the state and federal level, local rental inspection ordinances...A LOT has changed in just even the last few months!

Market trends that have significantly changed over time. The local Sacramento trends do not copmletely line up with the national or state-wide trends. Just a year ago, foreclosed property listings dominated our marketplace, and now short sale listings do.

When you seek the advice of a local Sacramento Realtor, please be sure you choose to work with one that is on top of our ever-changing market...

Whether you are planning to Celebrate Christmas, Channukah, or whatever else this holiday season, if your festivities involve gift giving, there are many Sacramento-themed gifts you can give! Here are my top 12 gifts that will make any Sacramentan's holiday, at any age or budget:

• Dinner at The Grange and an overnight stay at The Citizen Hotel; This combo has become a favorite of mine! The food at the restaurant is outstanding, and the hotel is one of the finest in Sacramento. I highly recommend one of the penthouse suites with a view of downtown! Estimated cost: $200
• A membership to the Sacramento County Historical Society; The mission of the Sacramento County Historical Society is to preserve the history of Sacramento County, and to promote public awareness of local history. As a member, you will receive a monthly newsletter and be invited to monthly meetings. Estimated cost: $35/individual membership.
• A T-Shirt from the Hard Rock Cafe; Yep - if you forgot, Sacramento does have its own Hard Rock Cafe location at the corner of 7th & K Streets. Estimated cost: $25 - $50.
• A subscription to SacTown Magazine; Read up on local goings on, Sacramento hot spots, restaurant reviews, articles of local interest, and more! Estimated cost for 12 month subscription: $12.
• A California State University, Sacramento sweatshirt; My alma mater! Stay warm this winter while supporting our local CSUS Hornets! My CSUS sweatshirt was a Christmas gift from my mother during my freshman year...I still wear that thing even though it is totally faded and worn out...Estimated cost: $36 - $75.
• Auto Detailing at Pavilion Car Care; They will make your care shine and your carpets fresh! Definitely the best car wash in Sacramento! Estimated cost: $45 - $299.
• Tickets to go visit the Sacramento Zoo and Fairytale Town; Heck if you are going to visit one, why not visit both! Located at William Land Park, this is a great diversion for adults and children alike! Estimated cost per person/ticket: $13.
• Bottle of wine from Revolution Wines; Revolution Wines is Sacramento's only urban winery. Tucked away at 21st & P Streets in midtown, they make their wine...their facilities also host tastings. Estimated cost per bottle: $10 - $25.
• Massage from Arden Hills Resort Club & Spa; Arden Hills boasts not only a fitness / wellness center, but also an award-winning day spa. Why stop with just a massage? They offer more than 75 different treatments! Estimated cost/treatment: $40 - $440!
• Dance lessons at The Sacramento Ballroom; Want to learn the Texas Two-Step, the Tango, or how to Swing Dance? They have classes for both singles and couples, from beginning to advanced levels! Estimated cost/lesson: $5 - $10.
• Tickets to a Sacramento Rivercats game; See the Oakland A's affiliate play at Raley Field. I'm a SF Giants fan, but I do really enjoy these games (especially when they play the SF Giant's affiliate team, the Fresno Grizzlies)...many of these players are a phone call away from the major leagues! Estimated cost/ticket: $6 - $30.
• A new home; Sure, I saved the best for last. Nothing says happy holidays like closing escrow on a Sacramento home...sorry if that was a little cheesy! Estimated cost: Priceless. =)

So I have gotten to the point where I have closed so many Sacramento short sales, I figured I would share my experiences with different lenders...All lenders are radically different in the manner in which they process short sales. I think it is only fitting that I start with Bank of America (formerly Countrywide in some circumstances), since I have closed numerous short sale transactions with them. There are distinct differences in the process and the contact information if your loan is a former Countrywide loan, vs. a loan that has always been with Bank of America.

The following are the documents that Bank of America will require from the seller:

• Last 2 months of bank statements
• Last 2 months of paystubs (or proof of unemployment)
• Last quarter of profit and loss statements, if self-employed
• Most recent retirement earnings statement
• Last 2 years of tax returns
• Completed financial worksheet
• Hardship Letter
• 3rd Party Authorization Letter

Along with those documents, the listing agent must forward the listing agreement, purchase agreement, buyer's pre-approval letter, copy of deposit check, and Estimated HUD-1 (summary of costs associated with the sale). 3rd Party Authorization letters should be faxed to 972-661-7800, or 805-520-5019 (old Countrywide loan). Bank of America's general short sale fax number is 866-706-7497, or 888-491-4947 (old Countrywide loan).

The 3rd Party Authorization letter should be faxed immediately once the property is listed. The rest of the documentation (seller's financial documentation and purchase documenation) should be faxed ALL AT ONCE when it is all assembled. Do not fax an incomplete file to Bank of America, as it will likely be shredded at the other end...yes your fax may be around 100 pages. Bank of America's document imaging process is long. You may find yourself faxing documents multiple times before they are imaged into their system. In my estimation, on average, it takes approximately 2 weeks for a complete short sale document package to be uploaded into their system.

Once you can confirm that the documents have been received and imaged into their system, you should call at least once or twice per week. Bank of America's Short Sale Support department telephone number is 800-846-2222, or 866-880-1232 (old Countrywide loan). When you go through their phone system, depending on call volume, you may reach another department. Generally, someone in the short sale support department will order a BPO (aka, broker price opinion) or appraisal prior to the file being assigned to a "Negotiator" for complete analysis.

There are several variables that may influence the time periods of your Bank of America short sale. The fastest Bank of America short sale approval I have received took about 60 days. The longest Bank of America short sale approval I have received took about 180 days.

The best case scenario is that Bank of America actually owns the loan, and there is no mortgage insurance. This will ultimately produce the fastest short sale approval scenario because Bank of America is able to make its own decisions regarding acceptable losses.

The worst case scenario is that Bank of America does not own the loan, and it is instead owned by a 3rd party. A 3rd party can be another bank (seems like many of their loans are owned by Bank of New York, or Deutsche Bank), a securitized investment pool, a government entity (Fannie Mae, HUD/FHA), or a mortgage insurance company. In this instance Bank of America is just the loan servicer and can not necessarily make decisions about acceptable losses. This will ultimately produce the slowest short sale approval scenario.

Unfortunately, you will not know until a mid-stage of the short sale which of these variables exists. The negotiation will go through several "phases"...it is not unusual for the loan to pass through several "Negotiators" and have several BPO's. Once assigned to a Negotiator, you should be able to obtain that person's direct contact information, including a direct telepone and email address.

Once approval is issued, Bank of America generally gives only 30 days to close. BE READY...sellers be ready to move out, and buyers be prepared to close asap.

Bank of America seems to be the culprit of some of the absolute weirdest short sales I have done. The approval documents have been "lost" and short sales that have shown as approved in their system have taken weeks to get to me, and then we only have had like a week or two to close escrow. They have also "misplaced" short sale payoff checks from escrow. UGH...the only thing predictable about Bank of America is that they are completely unpredictable. I have worked with them many times and pretty can guarantee you it will be a clumbsy process...

Click here if you are thinking about doing a short sale of your home. Click here if you are thinking about buying a short sale home.

UGH...If you follow me on Facebook or Twitter, you will already know that I have been sick since last Friday. Finally went to the doctor on Monday, and without going into too much detail, I have been experiencing more pain in the last week than I have in my entire life. Thanks to my doctor (and a cocktail of antibiotics and painkillers) I should be back to normal soon. This photo is of one of my medicine bottles...I think warning #2 on the label is completely random and hilarious. Do foods really have "hidden sources of alcohol?"

Anyway, I have to return to at least light duty next week, as I have two new listings hitting the market. One is a short sale in Antelope, and the other is a regular transaction (yep, non-short sales, and non-foreclosures still exist!!) in Rosemont.