Time for Approval: 4.5 months
Notes: This short sale process was lengthy. Why? Bank of America does not handle its Ginnie Mae USDA short sales in Equator, their online processing platform. In addition, only a few negotiators at Bank of America are qualified to handle these type of files. The Ginnie Mae requirements are onerous. The package for Ginnie Mae consists of standard financial documents PLUS the following:
1. Verification of Information and Occupancy on a special form
2. The listing agreement MUST contain the following EXACT verbiage: “Seller may cancel this agreement prior to the ending date of the listing period without advance notice to the broker and without payment of a commission or any other considerations, if the property is conveyed to the mortgage insurer or the mortgage holder.”
3. Current, Non-Expired copy of MLS listing
4. Request for Pre-Foreclosure Sale and Affidavit (2 pages)
5. Purchase Contract with the following EXACT verbiage: “Sale is contingent upon the seller obtaining prior written approval of Bank of America”
Another cumbersome part of a Ginnie Mae short sale is that electronic signatures are disallowed. That means documents must be faxed or scanned, which takes more time than e-signatures.
What about the “other lien”? It was a homeowners association outstanding balance of about $5000. Ginnie Mae only agreed to pay $4000, but that amount was accepted as settlement in full by the HOA.
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204
Email Wendy: [email protected]