Does B of A accept Sale Option Contracts for Short Sales?

Question

I have located a potential short sale seller (NY State) who’s mtg is with Bank of America.

I am still in the "discovery/due diligence" period so do not know all the details and whether it will be worth going after and for what price.

It was suggested that I sign an Option Contract for Sale and Purchase.  I was wondering if anyone has had any experience with B of A short Sales being accepted with Option contracts.

Or does anyone have any other suggestions as to how to move forward?

Maryann L. · Answer

You can't assign but you can take title and resell immediately so long as there is no 30 day hold language in the addendums and approvals.  You do need to disclose in your purchase contract you are immediately reselling for profit.

We just did two BOA resells.  We did hold the 30 days but there was still plenty of profit to be made.

BOA, WF, and GMAC are the bigger lenders with contract language that usually dictate a buyer hold a property for a certain amount of time.  Most other banks allow you to buy and resell immediately..usually same day.

Good luck.

Nathan Emmert · Answer

Banks are simply trying to maximize their returns for their shareholders as they are supposed to... Why would they sell it to you for $50k knowing in the contract that you already have a buyer setup to pay more?  Why wouldn't they simply sell it to the guy willing to pay more?  They're already paying a realtor who is supposed to do the same value add for them that you as a wholesaler due to a desperate homeowner (i.e. marketing)... why should they accept less?

Account Closed · Answer

I'm still working on closing my first short sale as an investor in Florida.  All the realtors I work with say banks have become very strict with all short sale deals.  They won't even allow assignments.   Seems like anything creative will not fly.   Regardless of what I read about how banks are trying free up inventory from what I see they are doing everything possible to do the opposite.

Lynn Henley · Answer

Some of the short sale "guru's" tell you to use an Option Contract, but I've been told not to in FL.  Anyone else have a comment?