Servicing Release Impacts on Short Sales
(Bank of America Short Sale Agent update 10/30/12)
Bank of America services mortgage loans for hundreds of investors. As a part of normal servicing, investors may decide to release or transfer servicing from Bank of America to another company.
Servicing may be transferred on first, second or stand-alone liens. In most cases, once the servicing transfer occurs, the short sale process ends with Bank of America and the homeowner must contact the new servicer to determine what foreclosure alternatives may be available.
Some key activities that may occur during servicing transfer:
• Bank of America will send the homeowner a letter 15 days before the servicing transfer date.
• Bank of America may call the agent to advise of the impacts to the short sale.
• The new servicer will send a letter or statement advising the homeowner where to send payments.
• If an offer has already been accepted on your short sale, a closing has been set and an approval letter issued, the new servicer will determine if the short sale will continue.
Similar to foreclosure, a servicing transfer is a risk that may occur at any time during the short sale process. This is why it is important to move as quickly as possible to facilitate the short sale.