Bank of America Short Sale Agent Update


short sale house

Understanding Short Sale Agent Commissions

Bank of America pays commissions to licensed real estate professionals who close acceptable short sale transactions.

Commissions are:

  • Allocated from the sale’s proceeds to qualifying real estate agents or attorneys at closing
  • Calculated as a percentage based on the total/gross sales price of the property
  • Usually divided between the buyer and seller agents, as per mutual agreement

The maximum commission for all acceptable transactions is as follows and is paid when the short sale reflects positive mitigation:

max commission

Flexibility is allowed in the commission structure when the short sale does not reflect positive mitigation* or if the minimum acceptable net proceed** is not met. In these circumstances, the real estate agent may choose to reduce his/her commission to meet minimum mitigation requirements.

Exceptions:

  • Dual agents unrelated to either party will receive a 4% commission
  • In some situations, commission is limited per investor guidelines/investor approval and may vary

 Acceptable and Unacceptable Short Sale Transactions

In an acceptable transaction, commissions will always be paid within the following guidelines:

acceptable and unacceptable boa short sales

* Positive mitigation is the amount of loss Bank of America will mitigate by accepting the short sale as opposed to foreclosure.

** Minimum acceptable net proceed is the amount the investor requires to complete the short sale transaction.

An eligible short sale transaction is made on an arm’s-length basis, meaning the buyer and the seller have no personal, familial or professional (business associate, business interest) relationship and the property is listed for sale on the open market at fair market value. There may not be any actual or implied conflicts of interest.

If you have questions, first contact your short sale specialist (or closing officer) through Equator messaging. If there’s no response after two days, escalate to the team lead.

For urgent needs (such as a foreclosure postponement) or for escalation beyond the team lead, contact Short Sale Customer/Agent Care at 1.866.880.1232 between 8 a.m. – 10 p.m. (EST), Mon- Fri,  and 9 a.m. – 5:30 p.m. (EST), Sat.

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