Bank of America, Short Sales and Equator

Over the past several months I've noticed a trend that I believe needs to be addressed. It involves homeowners that have their mortgage with Bank of America and are forced, due to financial hardship, to liquidate or short sale their property.

It appears that a vast amount of these homeowners are heading in the same direction and it's certainly not a good one.  Since they are not in foreclosure they do not seek the advice of an experienced Florida foreclosure defense and real estate attorney and instead are engaging the services of a local real estate agent. Homeowners need to understand that whether they are facing foreclosure or not, this is a legal matter and you should seek the advice of an experienced Florida foreclosure defense and real estate attorney, not a real estate agent.

Oddly enough, as I listen to the homeowners' stories, each of these real estate agents appear to have relatively the same sales pitch; "I am a short sale expert and one of the few real estate agents certified by Bank of America to handle your short sale directly on their Equator system".  For some reason, at this point homeowners are convinced that since they aren't in foreclosure there is no need to incur the expense of an experienced Florida foreclosure defense and real estate attorney, especially since they are working directly with a certified Bank of America real estate agent. 

Homeowners Beware… Bank of America does not certify real estate agents to perform or negotiate short sales on the banks behalf.  What the real estate agents are really referring to is a certification they buy from a software company known as Equator. These real estate agents simply pay a fee to become certified on a software platform known as Equator, and are not in any way certified by Bank of America.

Here is an excerpt from the Equator site;

"Equator now offers a certification program to assist real estate agents meet the increasing market demands for short sales. There are three levels of certification-silver, gold, and platinum. The platinum certification costs $499 and includes a comprehensive Equator training program as well as your choice of either a short sale certification or an REO certification. If you are interested in both certifications (REO and short sale), there is an additional charge of $199. The training programs are all online modules, and you must pass a test at the end of the last module in order to receive certification. You can sign up for the certification program on the Equator website."  According to the Equator website, the benefits of certification include:

• Top Ranking in Search Results
• Enhanced Profile
• Ability to Market Experience Using the Equator Certification Logo

What homeowners need to understand is that the Equator software platform is designed solely for the benefit of the bank, in this case, Bank of America. It does not expedite the process and serves only as a platform for the bank to gather financial information about the borrower/homeowner, which later can and will be used to pursue a deficiency.

The homeowners that had finalized their short sale with their real estate agent through the Equator platform and did not seek the advice of an experienced Florida foreclosure defense and real estate attorney before closing all had the same results… Bank of America retained their right to pursue a deficiency. When I had asked these clients why they would close when Bank of America was not releasing them from any deficiency, they all had relatively the same answer; "My real estate agent said that Bank of America never releases anyone from a deficiency."

This may be the case when you have a non-attorney, such as a real estate agent, representing you providing the bank with all of your personal financial information without having any real ability to negotiate on your behalf. 

However, as an experienced Florida foreclosure defense and real estate attorney I have and continue to obtain numerous approvals from Bank of America waiving their right to pursue a deficiency (click here and read the most recent short sale approval clearly releasing my client from any further obligation and waiving all rights to pursue further judgment or deficiency) .

The end result for homeowners that chose to have their real estate agent represent them and not seek the representation of an experienced Florida foreclosure defense and real estate attorney is that Bank of America approved the short sale, and retained their right to pursue a deficiency leaving these homeowners liable for the difference between the short sale price and the amount they owed. In some cases, the homeowners are now faced with a potential deficiency judgment in excess of $250,000.00.

If anyone tells you the bank will not pursue the deficiency, read further by clicking here.

As I am writing this a recent conversation with a real estate agent came to mind. I was explaining that even when there is no pending foreclosure litigation a real estate agent should always recommend that homeowners first seek the advice of an experienced Florida foreclosure defense and real estate attorney. The real estate agent responded by stating; "Even when my seller is in foreclosure litigation, I tell them that there is no need to hire an attorney as the closing will take place before the property is sold at auction. Besides if they hire an attorney it will take me forever to close the deal" Continuing on she said, and I quote; "This is not life threatening, it's just a house and they can get another one."