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…]

Heads You Win, Tails You Lose

A flip of the coin, the luck of the draw, a roll of the dice…

This can make a big difference on the success of a short sale.

The lender or servicer of the loan can make all the difference in the world.

I am currently working on 2 files that have taken 2 completely different paths.  One has flown through the lender to approval without any issues, one is on day 120 and counting.  The difference is in the lender.

Completely by chance, one seller had there mortgage company swallowed up by a large bank that is aggressive about short sales.  They are efficient, easy to get in touch with, flexible.  A dream to work with.  From submission of offer to approval took about 20 days and the file will close in about 35 days from the time the offer was received.

Heads!  You WIN!

The other side of the coin…

Phone calls ignored, voicemail boxes full, email addresses kept secret, documents lost until the buyer is lost…

This is why agents quit doing short sales.

[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…]

Navigating Short Sales in Oregon

I had the pleasure of attending a short sale training class this past week that focused on clarifying Oregon Law as it applies to handling short sales.  It is amazing to me how many agents aren’t aware of what they can and more importantly can’t do when it comes to the handling of short sales in Oregon.

To Protect and Serve

Because of the financial impact now and in the future, the State of Oregon has passed laws to regulate what is required of anyone receiving compensation on a short sale transaction.  You will want to read ORS Chapter 697 to get all of the details.  But I will highlight a few points that most real estate agents aren’t aware of. [Read more…]