The Regional Office has been inundated with requests to escalate short sales.  We need to make sure that all sales associates understand what the proper protocol is for this.  Please review this information below so you will understand time frames and when it is appropriate to escalate to the Regional Team.

The Short Sale Timeframe

• A typical short sale decision can take 45-90 days from the date the offer is received. Several factors contribute to this timeframe:
• Day 1: Receive a legitimate offer (this includes the listing agreement, copy of MLS, preliminary HUD-1, hardship letter and a signed purchase contract)
• Day 2-15: Order appraisal (timeframe to obtain the appraisal is approximately 10 days)
• Day 15-25: Analyze: (obtain necessary financial documentation from the borrower to determine hardship and ability to contribute to the loss, dependent upon input from the borrower)
• Day 25 - 40: Negotiate delegated decisions. Be advised that non-delegated decisions will take an additional 30-60 days. Many investors (i.e. Fannie, Freddie) and insurers (FHA, VA, MI companies) do not delegate the short sale decision and require their explicit approval. If there are any subordinate liens then there must be a negotiation with them to accept a reduced payoff amount to release their lien.
• Day 40 - 75: Approve or Decline (Non delegated files could take up to 35 days for a approve/ decline decision)
• Day 75 – 90: Final Decision Communication

Escalation Process and Resources
The Short Sale Support Team is available to Originators, Realtors and Customers and should be the first resource to answer questions and resolve issues. The Short Sale Customer Support Team can be reached at 866-880-1232.

When an issue is not resolved within the prescribed time frame Originators should then escalate the issue to the Regional Office.

When to escalate
It is critical that proper procedures be followed as a means to make this escalation process a success. Ensure that the required amount of time has lapsed relative to the timeframe described above and that all required documentation has been submitted before escalating. Refer to the concierge team when:

• Confirmation of all required documents by negotiator has not been received by the 10^th day
• Appraisal has not been ordered by the 15^th day of receipt of offer
• A delegated decision has not been communicated in 30 days
• A non-delegated (MI and Investor approvals required) decision has not been communicated in 60 days
• The buyer is going to walk
• The rate lock is expiring
• A foreclosure sale is imminent

If there are any other questions please let me know.

Thank you,

***This is a letter that was emailed to me from a Bank of America staff member. Contact Michael Dunn, Realtor for all of your Real Estate needs! (505) 379-5849 AbqDunn@gmail.com www.MikeDunnSellsNM.com