Two interesting bits of information this morning. First, take a look at this chart from the Federal Housing Finance Agency. It shows the appreciation scale for housing in California from 1991 to present. Although we are not out of the slump by any stretch, it indicates the bottom happened in late 2008, which mirrors the movement I see in Sacramento's real estate market.
Second, another of my Bank of America short sales is about to be approved. What makes this Sacramento short sale different is the fact we submitted the file in early October, just as Bank of America was in the process of switching to its new system. The negotiator was assigned a month later in November. Typical. However, yesterday, Bank of America said the BPO will be uploaded next week; it expects approval in 10 days.
Blow me over with a feather. If this keeps up, I'll have to get a pacemaker. My heart can't stand it.
See, I envision this world as a place where a Sacramento short sale agent submits the complete package to Bank of America, and it's immediately acknowledged. The negotiator is assigned promptly. It moves from Phase 1 to Phase II within 2 weeks, goes to review, and Bank of America issues short sale approval 2 weeks later. Four weeks' time, tops.
But I'm a person who sees the glass half-full as opposed to half-empty.
It's too early to tell if this is a fluke. Last week we received approval on another Bank of America short sale within a 2-month timeframe. It could be a trend. Hard to say. But I'm keeping my fingers crossed. Because right now, I'm working on a boatload of Bank of America short sales.
If you're an agent or a seller who is exasperated by a delayed Bank of America file, ask to get that file escalated and transferred to the new system. Don't let it fall through the cracks. Once a short sale gets stuck, it's hard to unwedge it. Ask for a review of the file to ensure the bank hasn't lost any documentation. Put yourself in the negotiator's shoes. You've got 2 huge stacks of short sale files that reach the ceiling. One stack has every required document; the other is incomplete. Which would you work on?
Get timelines and hold the bank to it. Note your files. If Bank of America says it will assign a negotiator by Day X, call on Day Y. Follow up. And let me know how it goes. I'm always happy to hear from fellow short sale agents. Maybe someday we will all be as giddy about Bank of America short sales as we are about Wachovia short sales. You think?
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Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
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BoaA has been switching to a new "system" this week, and all the notes were wiped out. What a challenge! Got to love a challenge.
Oh, no, Joe. I'm sorry to hear that. Maybe you can give the bank your notes?
Was this through REOTrans or a different third-party vendor? I'm dealing with several of them.
Elizabeth
BOA could be so proactive if they worked on it. I hope that there new system helps them move faster. Did you eat yourself some turkey the other day?
Hey Tombo: Actually, no, I did not. I ordered the prime rib. Bucked tradition.
Elizabeth: I'm sure you practice this Bank of America short sale tip too, but when you can, get email addresses for your negotiator and their supervisor. The easiest way to get a response once things have been stagnant a while is email the supervisor about the lack of progress or communication and copy the negotiator. Your phone will be ringing in no more than three hours.
Featured @ Club Chaos
This is good news indeed for agents and homeowners. I am representing my first BOA short sale and this is very encouraging. Thanks for sharing.
Elizabeth, my sense from many areas of the country is we are PAST the mid point of the recession but only time will tell if this is true or like you said a fluke. Biggest problem is getting the job growth going again which impacts housing. Great data over a good span of time for California.
Another great post, Elizabeth! Thanks for sharing your tips on how to work with BofA short sales. We have several short sale listings with BofA and they seem to take forever. Hopefully they're working on shortening the timeframes for processing approvals.
Hi Chris Ann: Yes, often the banks respond more quickly to emails than phone calls. We hope to not involve the supervisor, but it's good information to retain just in case.
Thanks, C. Always nice to see your face and butterfly!
Hi Kari: We hope it's encouraging news. I like to look on the bright side of things.
Hi Gary: The unemployment front in California is pretty dismal at the moment. Our unemployment rate in Sacramento is above 12%.
Hi Doug: My previous Bank of America short sales were getting approval in the 3- to 4-month timeframe. Some 9 months to a year. Of course, part of that was due to flaky buyers, as I'm sure you are aware.
I really like the glass half full perspective. The way I look at it is that it's got to get better because for many of these lenders, the process can't get any worse! I've been fortunate to have had relatively good experiences with BoA short sales, but I think it was more the specifics of the properties and loans. We received approvals relatively quickly. Unlike some that we are still waiting on 7 months later because the loan has repeatedly been sold.
Elizabeth: I hope you are right and the signs you are seeing and sensing are positive and long lasting. The more successes experienced and related ... and the healthier the industry is in all regions of the U.S. ... the better. It just makes moving forward that much better and easier for everyone ...
Best of luck to you and your transaction ...
Gene
Not quite as dramatic here and I am guessing a few months behind you recovery. Good to hear Bank of America finally is getting the systems in place to move the transactions along at an acceptable rate.
Hi Elizabeth! I like the chart - if California is turning Colorado isn't far behind. and good news continues for BoFA "blow me over with a feather" LOL!!
Elizabeth - well blow some of that wind this way to will you :) We'll welcome it with open arms ~Rita
Are you doing any thru reotrans.com yet? Thanks for this update!
Good to here they are making some progress! Hopefully short sales will pick up even more now that Obama and the Treasury have begun to offer homeowners and Lenders subsidies for getting a short sale done!