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.

No Loan Modification Required

The worst part of HAFA is that the seller must first apply for a HAMP loan modification before they can opt for a short sale.  This “Cooperative Short Sale” skips that process.  Now a seller that has their mind set on selling their home can actually do it AND get some relocation money.  They can also have no deficiency judgement waiting for them down the road.  The only real difference is the fact that the Co-op Short Sale only pays $2500 in relocation. Non-owner occupied too!

 

 

The Fine Print

Unlike HAFA, some of the benefits of this program are flexible depending on the investor.  When I first heard of this program from a Short Sale Manager at BofA, I was told the only difference was $500 in relocation.  Not true according to their information sheet. Bank of America services loans for hundreds of investors so it is no surprise that they cant get them all to agree.  The seller may be asked to carry a note, or bring money in at closing.  It remains to be seen how often this will be the case and if it is “negotiable”. I still think  a well trained and experienced negotiator will be needed to anticipate and identify issues that would negatively impact buyers, agents, and the seller.

We, of course, are always advocates for the seller. They don’t know how to fight for a deficiency waiver, but we do.  I am eager to see if this program lives up to its potential.  I will report my results here.  Stay tuned.

Trackbacks

  1. […] until the number of distressed homes are significantly decreased.  Some lenders get that.  Bank of America is on record as saying they want to increase the number of short sales they do in 2012 by 60-70%. Chase has […]

  2. […] an earlier post I commented on the fact that Bank of America has gone on record to say that they plan to increase […]

  3. […] passion for defending those who can’t defend themselves.  This is why I push for HAFA, BofA’s Co-op, or the Chase Short Sale Outreach Program whenever […]

  4. […] Bank of America Co-op Short Sale this week.  We previously wrote about this program and had high hopes that it would deliver as advertised. However, we soon became a little suspicious of this program […]

  5. […] the balance. There are also short sale help programs like  Chase Short Sale Outreach and the Bank of America Cooperative Short Sale Program that also have the deficiency waiver built in.  Your short sale agent or all short sale realtors […]