Bank of America’s Co-op Short Sale, Facts and Findings

We had the pleasure of closing another 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 when we found out that BofA wanted to move the seller straight into a Deed in Lieu if the property didn’t sell in 120 days.

Turns out BofA is doing that with their HAFA short sales as well.  You can read about that HERE.

 

“Pre-Approved Short Sales”

Because of the Approved Marketing Plan that goes along with this program, the listing agent was able [Read more…]

Do Your Short Sale Approvals Say The ‘Magic Words’?

My greatest duty as a Short Sale Negotiator is to be an Advocate for the seller.

The sellers that I deal with have often been run through the ringer by life in general, and their lender. They are often left without the strength to defend themselves against things they don’t understand.

“Deficiency Judgement? Forgivness of debt is taxable?”

Many of them have a hard time understanding the process, much less the consequences of a short sale if not done properly.  They have the misconception that selling their home on a short sale will be the last time they will have to deal with this situation.

I have a tremendous 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 possible.

All of these programs have a… [Read more…]

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…]