Homeowners & agents nationwide are confused. What is Equator and how does it impact my short sale? In this blog let’s examine the negatives and then finally what to do with Equator.
Thinking about taking on a new short sale? REALTORS take note, Equator is the new “in thing” for Bank of America and now GMAC as well. What used to be REOTrans has been upgraded and is now the new Short Sale Equator system. We have been testing as well as using it for months and here is what we have discovered.
The negatives?
- Internet access required. The homeowner must create a userid on the system and have regular access to respond and upload docs. I guess they assume all homeowners have unlimited access to scanners and the internet, but if not they must have extra money to buy what they need, right?
- Behind the curtain, the process is still the same. It is really nothing more than an automated hurry up and wait system. You knock off all the tasks (like faxing, calling, and emailing the old way) and then wait on the bank for someone to be assigned to the account and review the uploaded docs.
- It’s very impersonal. The negotiators hide behind Equator and/or use it as an excuse for not responding. Before Equator, the negotiators resisted giving out their email address but sometimes would and eventually you could have a conversation with a real thinking human being. Now, everything has to be input into Equator virtually limiting as much as possible the human to human interaction.
- Unreasonable demands. The bank can and does take as much time as they want but every communication in Equator concludes with “if this is not responded to within 24 hours the file will be closed.” Remember the part about “better make sure your seller has constant access to the internet?”
- Unilateral negotiations. Counteroffers by the negotiator through Equator are not always “accurate” per management or the investor’s (Freddie, Fannie and others) guidelines. This leads to acceptance of an offer or counter and then it later being reneged upon.
- Unfair trade practices. The negotiator will attempt to reduce the REALTOR’s commission to the “standard” 4% or 5% or refuse to pay for seller’s portion of title insurance or eliminate entirely all title company fees or make unreasonable demands of other lien holders or POAs and HOAs.
- Escalation improbable. Not satisfied with a response or feel you’re not being treated fairly? Please enter your complaint in the following field, include your name, number, best time to call and exact nature of your complaint, any incomplete forms will limit our ability to respond–limit your response to 24 characters. Ok, the 24 characters part is not true.
- GMAC has to submit its own files in Equator versus the agent doing it and starting the process.
- If you like Equator it is not available (currently) for FHA-insured short sales.
- The Bank Slayer
The only reason the homeowner needs to upload their own documents is if they don’t want their agent to see their financial information. Create an E-mail account for them and upload the docs yourself. Remember, the homeowner logs into the Bank of America website shortsale.bankofamerica.com not equator.com. Alternatively, the Bank of America short sale department (866-880-1232) will help the homeowner complete their tasks.
Keep in mind the bank has tasks to complete, too. Just because your offer is sitting in held status and you don’t see any activity doesn’t mean it’s not being worked on. The bank’s tasks have due dates just like yours do. You can call the short sale department for a status update and sometimes they will tell you if there is an overdue task for the negotiator and send them an escalation message for you. Or you can send one yourself through the property messages. Escalation procedure: Negotiator < Team Lead < Manager.
Good luck with your short sales!
MMMmmmm very interesting…….My experience with Equator and B of A was quite impressive. I had full investor approval and a closing letter 49 days from pulling the trigger on the short sale initiation. They only cut commission 1/4% and I was called twice on Saturdays by the negotiator and the closing negotiator. My calls to the short sale department were quick and efficient. All in all, this last closing was the best short sale experience I’ve had out of the six I’ve been involved in so far.
Don’t shy away from B of A!
Hello, gmac had me sign papers allowing them to communicate w my second mortgage holder. When I spoke to their representative he told me my realitor would provide the brokers price opinion. I have since had the fees for a brokers price opinion taken from my mortgage payment twice. Never got a notice that I had any extra fees to pay and was then treated as if I did not make my payment. I finally got a good offer from a move-in buyer ready to pay cash, went as far as the title co. But got kicked back because the second mortgage holder was not included in the deal. They said it was the realitors responsibility to communicate w the second holder, regardless of how their own papers gave gmac/equator permission to do it, leaving both my realitor & I to think they were handling it. They took a week just to get back to us as to what to do next. We are at their mercy, they know it & stall as much ad they can to suck more & more fees & payments from the seller. The seller has dropped out & put an offer on another house. Gmac/equator is very unclear as to what they require & totally insensitive to the time factor, which directly caused this sale to fail. Where do I file a complaint that will have the power to make them improve?
Dianne I have done a number of short sales involving a First 7 Second Mortgage It was Your Realtor’s repsonsiility to negotiate with the Second Mortgage Company & Not GMAC Resposibility,,,GMAC if they choose to Foreclose the Second Lienholder is OUT alltogether therfore they typicall will accept 5% off wht they were oweed,,You should have found a more experienced Short Sale Expert!