Listing agents that disagree with bank valuations of short sale properties now have a new option. Bank of America has streamlined their process for settling valuation disputes during a short sale, making it faster and easier for agents to get the bank to consider an alternate value.
The value of a property is established by independent third-party vendors shortly after a short sale is initiated. If a listing agent wants to contest that value, this is the new process:
How to dispute a Bank of America short sale valuation
- Tell your BofA short sale specialist that you would like a reconsideration of the value.
- The BofA short sale specialist sends you an investor-specific, easy-to-complete form that specifies all requirements for a successful value dispute.
- You fill out the form and attach specified evidence.
- You can expect a value dispute review within 10-12 business days once all required information has been received.
Evidence you need to dispute a Bank of America short sale valuation
When contesting a home value, Bank of America requires compelling evidence to support your claim. Here are the guidelines outlined by BofA:
- Do not reference property pricing amounts in the narrative on the form. This violates appraiser independence policy and is against industry standards. Any reference to pricing will disqualify the dispute.
- Provide comparables that are recent, proximate (nearby) and similar to the property in question.
- “Recent” means sold within 90 days of the actual value document date.
- “Proximate” varies by location. In a rural area, for example, a home five miles away could be considered proximate.
- You will be able to provide additional notes to highlight characteristics of the comps.
When the dispute centers on property conditions or hazards:
- Provide an itemized estimate from a licensed contractor on the contractor’s letterhead.
- Provide photos to illustrate the repair, condition issue or hazard you want to highlight.
The above is a summary of the new changes. Your Bank of America short sale specialist can provide additional guidance about the process.
We always advise homeowners to consult an attorney regarding how these changes will affect their own situation. We offer free attorney and CPA consultations as part of our service. Now more than ever, brokers need to be aware of the benefits of short sales for their clients. If you have questions about how to best proceed with a short sale, call Richard Eastern at 206-612-5541 or email us.