Please be advised that Bank of America is now requiring the parties to a short sale transaction to execute certain form documents before they will consider your short sale for approval. The buyer and seller will be required to execute a new addendum, and somewhat interestingly, the agents involved in the transaction will also need to sign an acknowledgment. A link to the forms is below. They each contain significant legal representations that you and your clients (including buyers) will need to carefully consider.
Please note that we are being told that these forms are non-negotiable. As such, if you elect to be involved in any short sale in which Bank of America is the lender or servicer, you should expect to have to sign these forms in each instance.
We strongly encourage you to contact our office and/or your in-house legal team if you have any comments or questions about these forms. They implicate very important legal issues, and require representations that were not previously required of realtors, the buyer, or even the seller.
Due to conflict of interest issues, we will be unable to provide any legal advice or guidance to any realtor after a contract has been submitted to us by a seller for approval, so it is imperative that you reach out to us beforehand if you do have any comments, questions, or concerns about the documents you are being asked to sign by Bank of America.
Our belief is that other short sale lenders will follow suit, as they each attempt to find ways to curb flipping and lowball offers. Indeed, the execution of these forms could conceivably make it fraudulent to submit such offers, so we strongly encourage you to take these forms very seriously if you plan to handle Bank of America short sales.
Link to Forms: Short Sale Purchase Contract Addendum