Bank of America - Short Sales

I am doing a Fannie Mae backed loan 1st Mortgage Short Sale with Bank Of America, we are in the end of phase 2 (7 months later) and the file was submitted to the MI Company this passed Monday 10/26, October is our first delinquent month, do you have to have several lates in order for them to approve you? Would the file even have gotten this far if they were going to deny it due to lack of delinquency? Any feedback is great!

Do you have to be late on your Mortgage to do a Short Sale?

Here are your answers. Most people say. FIXED LOL YES- In order to do a short sale you must be at least 90 days late on the Mortgage.

Now for the other answer…

NO-You can do a forbearance on the mortgage and push the payments out for 90 days. After you do that forbearance you are now 90 days late and can do the Short Sale. So now after you do the forbearance. They will allow you to do the Short Sale right away even though you are not late. I know this sounds insane yet it works.

So the answer here is YES AND NO!

You do not have to be 90 days late… as long as the homeowners can prove an imminent future financial hardship then you can start the process.

:biggrin short sale girl.

I am not sure the extent of Summits experience with short sales, but every lender must review all applications for short sales. Now, if you are not delinquent it may push your file to the end of the list, but that can’t be proven. I see dozens of these a month and sometimes files that are not delinquent move faster than those that are.

Unless you have contacts at the bank you are dealing with than its a roll of the dice. I have hundreds of contacts at banks and I can’t tell you how many times its saved me.

The agent that is processing the short sale has the job of painting a picture for the bank of the sellers finances. If they paint a good picture and have a good offer, your last ingredient is a patient qualified buyer.

Take care,


Private message me if you have any questions

If you do a 90 day forebearance then that will give you the time to work the short sale. By doing this the end result is that the credit shows as lender settled for less then full amount. Where as if you process it when the borrower is late at that time it will show the late pays and the lender settled for less then full amount…

As far as my experience with Short Sales I have not done that many. As of last count I have only been doing this for almost 10 years. And have only done about 10,000

I totally agree that every lender is different with policy. That being said they all look at the price.

And I agree that I didn’t post that right now that I looked back I meant to say most people say you must be late. Sorry about that :beer

I definitely agree with your statement. It is better if you should not be late. Process it as early so that they can manage it in a time.


Just a suggestion to check the dates on a post when you answer a question. That was 9 months ago! :biggrin