A New Buyer Can Be Substituted for One Who Walked

We have learned of a very interesting development with respect to Bank of America. Bank of America has advised that it will permit a new buyer to step into the shoes of a buyer who has walked away from a transaction.  Furthermore, Bank of America has advised that the process will not have to begin anew. This change will potentially save a great deal of time during the short sale process as your Berlin Patten negotiator will no longer have to initiate a new short sale if a file cancels and a new buyer is found. As with all lenders, please keep in mind the following caveats/disclaimers:

1.You must have a backup offer ready to be submitted:

Contact your Berlin Patten negotiator immediately if you discover that the original buyer is no longer interested in the property, and you have a backup offer waiting.  The negotiator will then work with the Bank of America short sale specialist to submit your backup offer without having to repeat the short sale initiation steps.

We recognize that this might create some issues, for if you obtain a backup offer for a greater amount or a backup offer that otherwise has better terms, then you must make sure that your seller and the backup buyer clearly understand that it will not be submitted unless or until the first buyer cancels (or the first deal is rejected). Otherwise, submitting a “better” backup offer will likely automatically lead to the rejection of the first offer.
2. If no backup offer is available when the original buyer cancels, then the matter will be terminated by Bank of America and the process will need to begin anew.
As always, please contact if you would like to discuss this further.

 

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