Bank of America’s Equator System

If you have been negotiating short sale, you have been exposed to Bank of America’s new system for short sales called Equator.  The new system was put in place to “speed up the process”.  We have obtained several approvals now through the system and have gotten familiar with the process for using the Equator system.  We will walk you through a typical short sale.  All time limits are set by Bank of America. 

  1. File initiated in the Equator system and third party authorization uploaded
  2. Listing information and buyer information uploaded into Equator
  3. Purchase contract uploaded
  4. MLS, pre-approval, HUD-1 and MLS photo uploaded
  5. Seller calls in and sets up their side of account
  6. Seller receives email with temporary password into Equator account
  7. Seller sends temporary password information to Berlin Patten.
  8. Berlin Patten logs in, completes  financial information and uploads paystubs, bank statements and tax returns
  9. BOA checks “vendor” status (verify we are all who we say we are)
  10. BPO is ordered
  11. BPO is received back
  12. File is assigned to a negotiator
  13. BPO value is input into the Equator system                                                                         
  14. LRV (Loan Value Ratio) input into system
  15. HOI (homeowners insurance review) is done                                                                    
  16. Payoff quote is ordered                                                                                                                               
  17. Payoff figures are input into the Equator system                                                                              
  18. Soft credit pull is done to check Seller Beacon score
  19. Foreclosure Value bid is obtained
  20. Negotiator must input NPV (net present value)
  21. Negotiator must now analyze the offer
  22. Negotiator must now negotiate the offer
  23. Tentative yes, or a counter offer, or a decline is received.
  24. Yes or counter offer must be replied to.
  25. Negotiator must now analyze the offer
  26. Negotiator decides whether to accept or reject or counter the counter-offer as presented.
  27. If negotiator counters we return to Step 20, If negotiator accepts we move to Step 28
  28. Negotiator must input NPV (net present value)
  29. Negotiator must now review and prepare file for final Investor approval
  30. If loss ratio is high file sent to Executive Review Committee for clearance
  31. If loss ratio is very high file then sent  to Senior Vice President for clearance
  32. File sent for outside (Investor) approval or counter-offer.
  33. If counter-offer go back to Step 20, if approval to Step 34
  34. Investor approval received
  35. Approval letter prepared and sent thru Equator

Although complicated, this process has resulted in some improvement to Bank of America’s short sale approval timeframe. However, it remains a lengthy one, as you can see, and the parties should continue to be apprised of this fact whenever possible so that expectations remain reasonable.

Written and posted by Karen Gagliardi, Business Development Coordinator with Berlin Patten, PLLC.

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