2 Big Reasons Why Banks Love Short Sales

In an earlier post I commented on the fact that Bank of America has gone on record to say that they plan to increase the number of short sales they do by 60% in 2012.  I want to explain why this is more than just a feel good policy and why other banks are doing the same thing in the State of Oregon.

There are 2 main reasons that point to an increase in short sales and they are both about minimizing loss and maximizing profits for the bank.

#1 – The bank nets more money in a short sale than in selling a bank owned home.

I  have seen several different statistics with varying numbers that support this fact.  Some experts say… [Read more…]

This could be HUGE!

Last week I watched a web cast with an executive at BofA and he stated that they expected to increase the number of short sales they do in 2012 by 60%.  It looks like they are finally realizing that short sales are more beneficial  to the banks as well as the seller.  There is just one small problem…

They are not set up to handle that.

So I thought…

Cooperative Short Sales

As an alternative to the HAFA short sale option, BofA has rolled out a Cooperative Short Sale that promises to get approvals in 10 days.  You can submit an application at the time the home is listed and market a pre-approved short sale.  This looks to be very similar to HAFA without a huge amount of forms to fill out. Streamlined paperwork and less financial disclosure means this process can really be done quickly.

Imagine a world where short sales closed as fast as traditional home sales. [Read more…]

What The Heck is a HAFA?

HAFA stands for Home Affordable Foreclosure Alternatives and it is part of the Making Home Affordable program created by the Obama Administration to help homeowners avoid foreclosure.

Unlike most features in this program, HAFA is used when staying in the home is not affordable or is too much of a burden to bear and a short sale is needed.

In order to truly understand HAFA, you need to know that its is a supplement to a program called HAMP (Home Affordable Modification Program).  The goal of this program is to keep distressed homeowners in their homes through a loan modification.  Because there is a large number of homeowners that can not qualify for a loan modification, have defaulted on a loan modification, or just need to sell, the HAFA program was introduced as a way to “exit gracefully” in their words.

The features and benefits to a HAFA short sale are many…

[Read more…]

Doing Work That Matters

I met with another homeowner this week who had a failed attempt at a loan modification. His home goes to sale at the courthouse in about 90 days.  He’s come to realize that a short sale is a better alternative to a foreclosure but he is frustrated with the process that has brought him to this point.

Navigating Without A Compass

I hear the most amazing stories when helping homeowners with a short sale on their home.

Hours on the phone, lost paper work, rude phone calls.

It’s no wonder why people are so upset with their lender that they are willing to walk away despite the increased damage it will do to their financial future.

In this particular case a real estate agent brought me on board to handle the short sale while he marketed the property for the seller.  The seller had been told that he was getting a modification on both of his loans.  Not true. [Read more…]

That 7 Year Rule You Heard is a Bunch of GARBAGE

If we are ever going to get the economy back on track, we need for Americans to get back into home ownership. With literally millions of people having gone through a foreclosure, short sale, bankruptcy or deed in lieu it is important to know how long it will be before they can buy again.

The Bad, The Worse, and the Ugly

According to an article in the New York Times, Foreclosure was the worst derogatory mark when it came to earning the ability to purchase a home again.  I have long believed this to be true and have written about it before here.  But when you get a spokesman from Fannie Mae to say “The key is to avoid the foreclosure, that is what will help you be eligible for the shorter period”, it is clear that we need get this message out.

And Now For the Shocker…

FHA homeowners who have elected to complete a short sale and have been current for the previous 12 months may be eligible to purchase again immediately.

Did you catch the little factoid in there? [Read more…]