The short sale process isn’t for everyone. With additional effort of securing an offer, waiting for the lender to approve or deny the sale and the stress of the foreclosure looming, many people simply avoid the process altogether. Even though the process can be completed successfully, some lenders use a specific system for procedural guidelines that can be very strict.
You may or may not have heard of the word ‘equator’ associated with a short sale. It does not refer to the geographic location, but is the name of an online platform that some lenders use for short sale transactions. Some of the big lenders that use this system are Bank of America, Wells Fargo, GMAC, Nationstar and Service One.
The Equator system allows for more streamlined communication between anyone involved in the short sale of a home, makes document preparation and management easier and is offers an online portal for email and messaging. While the system sounds like a great idea, it can often bring more problems for homeowners participating in the sale.
First, the system requires the seller to be identified by the first five digits of their social security number. Obviously, this can lead to privacy and protection concerns. Also, the system requires that the potential buyer of the short sale enter their personal information. If the buyer refuses, the lender may decide to forgo the offer or deny the sale. This issue creates further strain by delaying the process much longer than need be.